The end of the year is typically marked by family activities, beautiful lights, and lots of holiday spending. Be sure that your bank account is protected from scammers and malicious individuals. The last thing you need is to have to deal with the additional stress of cancelling bank cards, dealing with a fraud department, or losing your hard-earned cash.
Always know who you are buying from
Shopping around the holidays can be a lot of fun. There are great new products and gadgets released every year about this time, and it can be tempting to buy. If you have never heard of the company advertising a product you are considering you should always do a google search for the company to find reviews and also check on the Better Business Bureau website. This simple check can help you spot scams and be sure your money won’t disappear along with your personal credentials.
It can also be tempting to respond to Craigslist or Facebook ads promoting cheap items. Be sure to do your research before buying into any of these ‘deals’ especially if they want your money before you see or receive the product.
Think twice before typing in your personal information or password
The goal of scammers is to get as much of your personal information as possible. This could look like a link in an email that takes you to a fake but convincing web page where you already have an account. When you log in to your account you’ll notice the website acting funny because it wasn’t the real site – but now they have your real username and password for that site.
You should never click on a link in an email to continue to a webpage that is collecting personal information. If you fall into this trap you should immediately close your browser, reopen it and go to the legitimate site directly from the browser, log in and change your password.
Never add your personal information to
a website if you suspect it isn’t legitimate
Send money safely
Online payment portals like PayPal, Venmo, Zelle, and others are becoming very popular, but they are not infallible as seen by the recent fraud issues announced with Zelle. By the end of this year scammers will have stolen over $255 million from individuals and banks using that platform since 2020. PayPal and Venmo have also been hacked over the years.
If you choose to use one of these popular payment platforms always make sure that you are sending money to the right person and that the amount you type in is correct. These types of accounts are tied directly to your bank account so always make sure you have a secure password stored safely and two factor authentication on the login if you can.
Keep an eye on your bank statement
You should always watch your bank statement for errors and purchases that weren’t made by you, but it’s especially important around the holidays. Make a habit of checking your online statement every few days if not daily, and make sure that totals are correct. It will also help you avoid overdrafts and have an idea where your money is going,
Make sure you know where your bank cards are
With the hustle and bustle of crowds and visiting multiple locations to find those perfect gifts it is very easy to leave your card behind or drop it where someone could take it. Keep your cards in a secure location and if you have more than one, consider leaving the majority at home rather than carrying them with you. Always verify you have both your card and a receipt as you leave the cashier in every business.
It’s also a good idea to keep a small card with the phone number of your bank’s fraud department handy in case your bank card is lost or stolen. You can quickly make the call to have it frozen or cancelled.
Use secure passwords on all online financial accounts
While you might not need to have a complicated password to access your social media accounts or other simple-access portals, it is incredibly important to have secure and not easily guesses passwords on any websites that access your bank accounts, IRS and tax records, or your credit and social security and medical records. Use a different password for each site and use two-factor authentication wherever possible.
Watch out for donation scammers
This time of year is particularly precarious when looking for charitable places to donate a little end-of-year cash. Some studies have shown that as many as 30-40% of money and donation requests this time of year are from illegitimate organizations or scammers. This includes fake gofundme.com accounts as well as fake product and service ads. Learn more about fake charity scams here: https://www.ffef.org/ffefblog/dont-taken-charity-scams/
Not all advertising is real
Just because you are seeing a nice-looking ad on Facebook or Google doesn’t mean that the product or service isn’t a scam. It is very easy for bad players to create websites that look just like the real thing like Legos, Apple products, gaming sites, and high-end clothing companies. If their prices are low and the deal sounds too good to be true it probably isn’t the real deal. If you choose to make a purchase they will look legitimate on your bank cards and since you initiated the purchase you won’t fall under the bank’s fraud protection policies.
In addition, your personal information will be stolen and your accounts can be drained by players in China and other off-shore accounts that are impossible to track or recover. If you have fallen for one of these traps immediately call your bank to cancel the purchase, put a hold on your card, or have a new card sent to you.
Watch out for unsolicited emails and texts
Email and text phishing ads for ‘erroneous purchases’ or deliveries are becoming very popular ways to snag unwary shoppers. If you receive an email or text telling you that an abnormal purchase has been made on your account and telling you that you only have 24 hours to dispute it, or that a package from Amazon or Walmart has been held for you until you ‘confirm’ your personal information it is most likely a scam. If you are concerned, never click on the link in the email. Always type the URL address into your browser to log into your accounts to check on issues related to orders.
Signs it’s most likely a scam:
- A sense of urgency – like a sale ending or running out of product
- Poor grammar and spelling
- Deals that are too good to be true
- Threats of violence or ‘unknown’ dangers
- You are encouraged to buy more to get free shipping or larger discounts
- If you aren’t sure, err on the side of caution
Follow these basic steps to protect your personal and financial information and you’ll find you have a lot less stress this holiday season.