The holiday season is a time of joy, celebration, and giving, but it’s also a prime time for scammers to take advantage of unsuspecting individuals. As people rush to buy gifts, make travel arrangements, and donate to charities, they often let their guard down, making them easy targets for scammers. In this blog, we will explore different kinds of holiday scams and the preventive ways you can avoid them. Let’s shop safely this holiday season!

The Gift Card Scam

This is fairly new type of scam. The way it works if that gift cards are taken off the rack and the silver coating protecting the PIN code is scratched off. The code is recorded, and then a fresh coating is carefully reapplied so that customers won't know the difference.
The scammer waits a day or two for the card to be purchased, at which point the PIN and card number are available for use. To know if the card has been purchased, all the scammer must do is test the number and PIN on an online purchase. Sadly, the intended receiver of the gift card is left with a dud and is disappointed.

How to Avoid:

  • Examine each physical gift card before purchasing to see if the silver coating is cleanly applied
  • Send E-gift cards directly to the recipient rather than physical cards

Mail Theft

Letters with cash as gifts are still commonly sent via the mail. However, colored envelopes and handwritten addresses make it simple for thieves to separate personal cards from the pile of bills and junk mail. After steaming an envelope to search for cash, they will replace it in your mailbox. Large-scale mail theft also occurs. Keys that unlock complete mailbox racks in apartment and condo complexes are available, as well as universal keys that work on any blue post office mailbox.

How to avoid:

  • Avoid sending cash via mail
  • Purchase physical gifts online and send directly to the recipient
  • Send E-gift cards directly to the recipient

Charitable Giving Scams

Scammers are aware that giving to the less fortunate is more common over the holidays. They will defraud you using phone scams and phishing emails.

How to Avoid:

  • Do not click any links in an email, instead, go directly to the organization’s website to make an online donation

The “Grandchild is in Trouble” Scam

Scammers use deceptive social engineering techniques to get elderly to give money. They will call or email the grandparent and pretend to be a grandchild who has gotten into some trouble. Usually the “grandchild” will ask for money to be sent to them and to leave parents or legal guardians out of the situation.

How to Avoid:

  • Call the grandchild and/or the grandchild’s parents/legal guardians to make sure they are safe

Business Email Scams

Scammers have found great success impersonating business officials through text and email messages; last year, they took around $2.4 billion in losses (Forbes). To persuade you to send a wire transfer or pay an invoice for the staff holiday party without first making sure the request is valid, they will often use urgency and impersonate business authority.

How to Avoid:

  • Call the colleague to be sure the request is valid
  • If the request is in an email, look out for phishing techniques commonly used or consult your IT team

As the holiday season quickly approaches, its essential to stay vigilant and informed about potential scams. By being aware of common tactics used by scammers and taking proactive steps to avoid them, you can enjoy the holiday festivities without falling victim to deceit. Remember, a little caution can go a long way in ensuring that your holidays remain filled with joy and peace! Stay safe and happy holidays from your BankIowa team!

Credible Sources:

Forbes