As shoppers gear up for incredible discounts, experts warn of a spike in holiday-related scams.Money is flowing through Texas this season, and with it, the risk of fraud. Jason Meza from the Better Business Bureau highlights the dangers.
“Especially this time of year, don’t let your guard down,” Meza cautions. “You could be shopping at the mall and you get the text, or you get a notification and you simply don’t think twice.”
The BBB reports a nearly $1 million increase in scam-related losses in Texas from 2022 to 2023. Nationwide, the Federal Trade Commission has logged over $300 million in online shopping scam complaints this year alone.
Social Media: The New Playground for Scammers
“Social media has now become the next frontier when it comes to scams and fraud,” Meza said. “The problem is, it’s hard to vet, it’s hard to verify who’s legit and what kind of reseller or seller is.”
- Fake online stores mimicking reputable brands
- Phishing links disguised as exclusive deals
- Influencer partnerships with fraudulent businesses
These tactics make it challenging for consumers to discern genuine offers from deceptive schemes.
The Rise of Gift Card Scams
Kathy Stokes with AARP reveals that 82% of Americans have encountered some form of fraud in the past year, even if it didn’t result in financial loss. Gift card scams are particularly prevalent during the holidays.
“They have to watch out for the fact that criminals are really good at manipulating those cards, whether electronically or from the store,” Stokes explained. “We found out that 30% of us have either given or received a gift card with no value on it, and that’s up from 21%.”
Common Gift Card Scam Tactics:
- Fake Retailers: Selling gift cards that never load value.
- Phishing Emails: Requesting gift card information under false pretenses.
- Unauthorized Charges: Using stolen data to deplete gift card balances.
Safe Shopping Practices to Avoid Falling Victim
Meza emphasizes the importance of vigilance when making purchases. “Take time to research who the charity is and who their mission, their board of directors, and just do a little bit more digging,” he advises. “That charity will welcome your money tomorrow just as much as today.”
Here’s how you can protect yourself:
- Verify Sellers: Check reviews and authenticate websites before purchasing.
- Use Credit Cards: They offer better protection against fraudulent transactions.
- Be Skeptical: If a deal seems too good to be true, it probably is.
Peer-to-Peer Payments Pose Additional Risks
Stokes warns against using peer-to-peer banking services like Venmo or CashApp for transactions with strangers.
“They simply don’t have protections, consumer protections,” she said. “So really what you want to do when you’re making a purchase of an item, is use a credit card. That’s your safest bet.”
Fake Charities Exploit the Season of Giving
During the holidays, the spirit of generosity can be exploited by fraudulent charities. Meza advises thorough research before donating.
“Fake charities will welcome your money just as much as legitimate ones,” he noted. “Always check their credentials and ensure they are registered with appropriate authorities.”
Table: Common Signs of a Fake Charity
| Indicator | Description |
|---|---|
| Lack of Transparency | No clear information about where funds go |
| High-Pressure Tactics | Urgent requests for immediate donations |
| Poor Online Presence | Minimal or suspicious online information |
| Unverified Credentials | No official registration or tax-exempt status |
| Inconsistent Communication | Conflicting information across platforms |
Final Thoughts on Staying Safe This Holiday Season
“We’re always telling people to keep your guard up,” Meza reiterates. “In the event they see a fraud pop up or if something just doesn’t feel right, they should be suspicious. If it sounds too good to be true, it probably is.”
By staying informed and cautious, shoppers can enjoy the holiday deals without falling prey to scams.
