12 scams of the holiday season

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As online shopping increases, it’s important to be aware of cyber fraud during the holiday season. Scams that target holiday shoppers often rely on fake websites that mimic real online stores, offers that appear too good to be true, bonus gift cards and deceptive online games.

Most common scams

While the fundamentals of fraud recognition and prevention are same all year, here are the most common scams to be on the look for this holiday season:

1. Online shopping: Fraudsters can pose as legitimate sellers and will post fake ads for items that don’t exist. Watch for signs like prices too good to be true or if you can’t find any additional information about them online.
2. Counterfeit merchandise:  Sellers may create sites that look like legitimate manufacturers and offer huge limited time offers, by selling counterfeit products.  Be cautious of deals too good to be true and look closely at the website URL to see if looks suspicious or has mistakes.
3. Phishing and smishing: Scammers continue to use fake emails or texts from unrecognizable sources to trick people in to disclosing personal information (e.g.: banking, credit cards, drivers license). Carefully look at emails to see if the sender is legitimate, hover over the links to see if they are re-directing you to somewhere else, and watch for a sense of urgency.
4. Romance scams: Fraudsters can play on emotions during the holidays. Using fake identities they offer up loving messages and promises with the hopes of swindling money out of their victims. They avoid face to face contact and want the relationship kept quiet.  If something doesn’t make sense then take a step back and inform your friends and family as they can provide good advice.
5. Missed delivery scam: A very common scam is an email or text stating a missed delivery with a link asking to pay a fee to claim the parcel. Take extra caution if you are not expecting a package or the order information is different from what you were expecting (timing, tracking number). Also look closely at the sender to see if the shipper name is slightly different than the real one. If you are still unsure, look at the courier website and contact the shipper to confirm.
6. Grandparent scam or emergency scam: Scammers may contact you (via phone, email, text) posing as a loved one (grandchild, nephew, friend etc.) who may be in trouble and needs money. Scammers use secrecy, speed and emotion to get you to react quickly.   Make sure this is the real person by asking other family members if they are aware of what is happening, speak to the person and ask questions only they would know.
7. Fake representative: A scammer may pose as a representative of a legitimate organization offering a great deal.  They often spoof numbers to make them look legitimate, pressure you into committing to a deal that is too good to be true or giving up personal information. Ask lots of questions and never give out personal information.
8. Identity theft/fraud: Scammers are looking for sensitive personal information to purchase goods or create new accounts. Always keep your wallet with you, cover your PIN, and never give out your sensitive information. Regularly check your credit report and monitor your bills for suspicious activity.
9. Prize notification: If you received a message saying “You won a huge prize! We just need your personal information or credit card for to cover fees” chances are this is a scam. In Canada, all fees are removed from winnings by law.
10. Gift card payment scam: Fraudsters target gift cards because they closely resemble cash. No reputable company will ask you to pay with gift cards so, if you get that request or are pressured to do it, it is likely a scam. 
11. Charity scam: Scammers often take advantage of the giving season by posing as a member of a charity, association or religious cause and solicit donations.  If you feel pressure, are urged to donate immediately or pay by cash or wire transfer, be skeptical and refuse. Ask for more information and a charitable tax number then research the organization and call Canada Revenue Agency to validate the organization.
12. Crypto or other investment scam: Fraudsters will promote fraudulent investments schemes via social media and will apply considerable pressure on individuals that express some interest. Don’t fall for the “hot tip” and “incredible low risk returns”. Always do your own research and consult with professionals when possible.

Be knowledgeable and be cautious

Fraudsters are especially creative with their scams during the holiday season as it’s a busy and stressful time of the year, so they will play on emotions and a sense of urgency even more. Trust your instincts – if something doesn’t seem right exercise caution.

To learn more about fraud and how you can prevent it, we encourage you to read our other articles for more in depth information.

• How to identify fraud
• What does fraud look like?
• Do you suspect fraud? What to do next.
• How to identify phishing or smishing