With the festive season fast approaching, excitement is building — but so are the scams. From fake shopping deals to phishing emails, fraudsters are working overtime to trick you into giving up your hard-earned cash.
Every year, in the last few months, there’s an increase in financial scams. Scammers take advantage of the busy shopping season and the spirit of giving to catch people off guard. It could be an innocent-looking email from a trusted retailer or an offer that seems too good to pass up. The risks are real, and the consequences can be costly.
In this post, we’ll guide you through the most common financial scams of the season and give you tips to stay safe, ensuring the only surprises you encounter during the end of the year are the fun ones.
Understanding Financial Scams and Why They Surge at the End of the Year
Financial scams are tricks criminals use to get personal or financial information from people. This can lead to identity theft or loss of money. Scams are more common in the autumn and winter because:
- More people shop online during Black Friday and Christmas.
- People are more likely to give to charities during the festive period.
- Many businesses send offers and promotions by email and text.
- More online orders mean more parcel delivery scams.
Psychology of Scams During the Festive Season
During the busy holiday season, scammers take advantage of people’s distractions and may trick them into clicking on unverified links or falling for fraudulent offers. The emotional appeal of special holiday deals and charitable causes can make people more vulnerable to these scams.
Impact of Technology and Social Media
Social media has made it easier for scammers to target people. They create fake ads, posts, and messages to sell fake products, run fake contests, or ask for fraudulent donations. Because of the internet’s anonymity, scammers also create fake online stores that look almost identical to real ones.
The Rise of Phishing Scams: Don't Get Caught by the Net
Phishing scams happen when con artists pretend to be trustworthy companies to steal your personal or financial information. They often send emails or text messages asking you to “confirm” a purchase, “verify” your account, or claim a prize.
The 2024 Cyber Security Breaches Survey found that 90% of businesses and 94% of charities were affected by phishing attacks in the past year. These attacks tend to increase during the festive season, with scammers mimicking companies like Amazon and eBay to trick people.
Common Phishing Techniques
- Emails asking you to update your payment information.
- Texts claiming you’ve won a prize and need to provide personal details.
- Fake links that lead you to websites designed to look legitimate.
How to Spot and Avoid Phishing
- Look for generic greetings like “Dear Customer” instead of your name.
- Check the sender’s email address for misspellings or suspicious domains.
- Avoid clicking on links in unsolicited emails. Instead, manually enter the official website’s URL into your browser.
- Use two-factor authentication (2FA) to secure your accounts.
Too-Good-to-Be-True Deals: Online Shopping Scams
Online shopping scams spike during the festive season, with fake websites offering incredible deals on popular items. These fraudulent sites look legitimate but are designed to steal your money or personal information.
How These Scams Work
- Fake websites mimicking popular retailers.
- Social media ads promoting products at heavily discounted prices.
- Phishing emails directing you to these fraudulent stores.
Steps to Stay Safe
- Stick to well-known retailers and check reviews on trusted platforms.
- Ensure the website URL starts with “https://” and shows a padlock symbol.
- Beware of offers that appear too good to be true.
- Opt for credit cards when making online purchases as they provide better protection against fraud than debit cards.
Fake Charity Appeals: Tapping Into Your Generosity
Many people feel the urge to give back during the festive season. However, scammers take advantage of this by pretending to be from charities and asking for donations. Be cautious when donating to ensure your generosity goes to the right place.
Here’s how you can verify a charity before donating:
- Only donate to registered charities. Verify them on the UK Charity Commission’s website.
- Use secure online donation platforms, not cash or bank transfers.
- Don’t respond to unsolicited donation requests. Contact the charity directly if unsure.
Parcel Delivery Scams: The Bogus Fee Trap
The increase in people shopping online has led to more scams involving parcel deliveries. These typically involve fake emails or texts claiming you missed a delivery and need to pay a small fee for redelivery.
Signs of a Parcel Scam
- Messages asking for a payment to redeliver a package you weren’t expecting.
- Links in emails or texts that direct you to unverified websites.
- Emails claiming to be from a delivery company but using suspicious sender addresses.
Avoid Getting Tricked
Never click on links in unsolicited delivery messages. Instead, check your order status directly on the courier’s official website. Always report suspicious messages to Action Fraud, the UK’s national fraud reporting service.
Remember, legitimate delivery companies never ask for additional fees via text or email. Always track your deliveries directly through the courier’s official website.
More Than Just a Ghost Story: Identity Theft
Identity theft is a serious concern during the festive period when people are distracted by shopping, celebrations, and end-of-year tasks. Criminals can steal personal information through phishing attacks, data breaches, or even discarded documents.
Preventative Measures
- Always check your bank and card statements for any suspicious transactions.
- Shred documents with personal information before discarding them.
- Use strong passwords and enable 2FA on sensitive accounts.
Be Prepared, Not Scared
As the festive season ramps up, so do the risks of financial scams. However, with a little awareness and caution, you can stay one step ahead of fraudsters. Take the time to verify any suspicious messages, check the legitimacy of websites before making purchases, and protect your personal information using secure online practices.
If you’re looking to take control of your finances this holiday season, Clockwise Credit Union offers affordable loans and ethical financial products to help you stay financially secure.
