While the holiday season is often a time of joy, it also brings an increased risk of financial fraud. As people shop for gifts, travel, and enjoy the festive atmosphere, scams tend to proliferate.
Seniors, in particular, are often targeted by fraudsters, but these scams can affect anyone.
By staying vigilant and following a few simple steps, you can protect your finances and enjoy a worry-free celebration.
Key Takeaways
Protecting your finances during the holiday season requires vigilance and knowledge of common scams.
- Be cautious when shopping online by sticking to trusted websites, verifying website security, researching retailers, and using secure payment methods.
- Protect your personal data by creating strong passwords, enabling two-factor authentication, and inspecting ATMs and card readers for tampering.
- Avoid delivery scams by being cautious with unsolicited messages, going directly to shipping company websites to track packages, and not responding to suspicious notifications.
Understanding the rising threat of fraud
According to the Federal Trade Commission, Americans lost $164 million to fraud last year, a significant increase over previous years.
Scammers take advantage of the busy holiday season, knowing that many people are focused on shopping and festivities.
Your best defense is awareness
Phil Smith
The Better Business Bureau reports that over 80% of individuals who fall victim to online shopping scams end up losing money.
While convenient, purchasing goods over the internet can open the door for fraudulent activity, making it essential for everyone, including seniors, to be cautious and informed.
Common scams on the rise
Fraudulent schemes often spike during the holidays, with perpetrators exploiting the chaotic and distracted environment. Seniors are particularly at risk, as scammers may target their limited familiarity with digital tools and heightened susceptibility.
Common tactics include fake online shopping websites or deals that seem too good to be true and delivery scams involving false tracking notifications.
Credit union fraud is also prevalent, with criminals targeting sensitive member information through phishing attempts via emails, texts, or calls to commit identity theft.
As such, remaining vigilant and proactive is essential to safeguarding financial security during this time.
Shopping safely in the digital world
With online shopping booming, especially during the holiday season, the ease of making purchases from home also brings increased risks.
However, by staying alert and following simple security steps, it’s possible to shop with confidence and protect your personal and financial information.
• Shop from trusted websites: Stick to well-known retailers or those recommended by friends or family. Researching the retailer can help you avoid potentially fraudulent sites.
• Verify website security: Before entering any personal information, ensure the website is secure. Look for a padlock icon in the address bar, which indicates that the site uses encryption to protect your data.
• Research the retailer: Take a moment to verify the seller’s credibility before finalizing a purchase. Search for the company’s name along with terms like “reviews” or “scam” to spot any potential red flags.
• Use secure payment methods: Avoid paying with gift cards, wire transfers, or cryptocurrency. Instead, use credit cards or trusted payment services like PayPal, which offer added protection. If a seller requests payment through gift cards, wire transfers, or cryptocurrency, it’s a clear warning sign.
Identity theft protection
Fraudulent activities aren’t limited to shopping websites; they can also occur in banking, social media, job offers, online auctions, and government services, where attempts to steal personal information like credit card numbers and login credentials are common.
Protecting your personal data is crucial in reducing the risk of identity theft and deception.
Seniors, in particular, may be more vulnerable to these types of scams, as they are often less familiar with technology and may have a greater sense of trust in unsolicited offers. This makes extra precautions even more critical.
For those engaging in online activities, here are a few steps to protect personal information:
1. Create strong, unique passwords: For your online accounts, use a combination of letters, numbers, and symbols, and avoid using the same password across multiple sites.
2. Enable two-factor authentication (2FA): Many financial websites offer two-factor authentication, which adds an extra layer of protection to your accounts. This typically involves entering a code sent to your phone or email in addition to your password.
3. Inspect ATMs and card readers: Before using an ATM or card reader, check for any signs of tampering, such as unusual attachments. Scammers may install card-skimming devices to capture your information.
If you’re a senior, using a trusted family member or friend to assist with digital accounts or technology can also provide an added layer of security.
Avoiding delivery scams
Delivery scams surge during the holiday season as cybercriminals take advantage of the busy shopping period. They may send fake tracking numbers or emails that appear to be from legitimate delivery companies, hoping to deceive you into clicking on malicious links.
To stay safe, always be cautious with unsolicited messages requesting personal information or encouraging you to click links. Instead, go directly to the shipping company’s official website to track your packages.
Don’t respond without verifying the details if a delivery notification seems suspicious. Reputable delivery services offer secure tracking through official websites, so avoid clicking links in emails or texts.
Credit union scam prevention
As loan requests rise during the holiday season, so does the risk of lending scams. Fraudsters exploit this time with tactics like synthetic identity theft, account takeover, and loan modification fraud. To stay ahead of these risks, credit unions must implement strong identity verification measures.
Advanced data analysis tools can also help detect unusual patterns in loan applications, flagging potential fraud early.
Additionally, credit unions should thoroughly vet each loan request, cross-checking financial data with trusted sources and verifying the value of any collateral.
Phil Smith, president and CEO of the Credit Union of Colorado, emphasizes that awareness is the best defense against fraud.
“The more you know about potential scams, the better prepared you’ll be to protect yourself,” he stated.
Crucial safety tips for the holidays
While online shopping and credit unions are common targets for fraud, there are other risks to be aware of during the holiday season.
Here are a few additional steps everyone, including seniors, can take to stay safe:
• Trust your instincts: Don’t hesitate to back out of a deal or transaction if something doesn’t feel right. Scammers often use urgency to trick victims into acting quickly, so trust your gut.
• Don’t share personal information freely: Never provide personal or financial details to anyone who contacts you out of the blue. Be wary of unsolicited requests for sensitive information, whether over the phone, via email, or through text.
• Use secure networks: When accessing your accounts or purchasing online, make sure you’re on a secure Wi-Fi network. Public Wi-Fi can be risky, as hackers may intercept sensitive data. Only use trusted networks when performing activities like checking bank balances or making purchases.
These measures are easy to incorporate into your daily routine and can make a big difference in preventing fraud.
Seniors, in particular, can benefit from support in learning how to recognize and avoid scams, so don’t hesitate to ask a trusted friend or family member for help.
Although the holiday season may bring heightened fraud risks, staying vigilant throughout the year is important. By taking proactive steps, you can enjoy peace of mind during the festive period and beyond, knowing your finances are secure.
Remember, whether you’re a senior or a shopper of any age, staying informed and aware of the risks can make all the difference. Following these steps can protect your finances and ensure a happy, stress-free celebration.
