The holiday season is a time for joy and giving, but unfortunately, it’s also a prime time for scammers. Fraudsters capitalize on increased transactions, holiday distractions, and people’s goodwill to exploit unsuspecting victims.
From smishing campaigns to fake charities, these scams are everywhere—but with the right knowledge, you can avoid falling victim. Here are the top 8 holiday scams and steps to protect yourself.
1. Schwab Alert: Smishing Threat Campaigns
Charles Schwab has issued an alert about an active smishing campaign targeting its clients. Scammers send fraudulent text messages claiming a large disbursement has been debited from the victim’s account, urging them to click on a link to verify the transaction.
Red flags to watch for:
- Texts from international numbers.
- Notifications of large ACH debits from your Schwab account.
- Instructions to cancel the disbursement by replying “Y” and clicking a provided link.
- URLs mimicking Schwab’s domain, such as https://schwbba.com or https://schwabd.com.
Be aware:
- Schwab does not notify clients about completed transactions via text messages.
- Schwab does not send texts from international numbers.
- These attacks are often broad-based, targeting random individuals rather than specific accounts.
What to do if you suspect smishing:
- Take a screenshot of the text and email it to phishing@schwab.com (ensure the phone number is visible).
- Delete the text message immediately.
- Add extra security to your Schwab account, such as two-factor authentication or a verbal password.
- Report any suspicious or fraudulent account activity promptly.
For more tips, visit Schwab’s Cybersecurity Resource Center.
2. IRS Impersonation Scams: A Senior Target
Fraudsters often target seniors, posing as IRS agents and demanding payment for fabricated tax issues. These scammers create urgency, threatening penalties or arrest unless immediate action is taken.
How to protect yourself:
- Remember, the IRS does not initiate contact via email, text, or social media.
- Payments should never be made through gift cards, cryptocurrency, or wire transfers.
- Verify any suspicious communication through the official IRS helpline or website.
Seniors can also report scams to the National Elder Fraud Hotline at 833-FRAUD-11.
3. Charitable Giving Scams
During the season of giving, scammers impersonate charities to steal money. They use phone calls, emails, and fake websites to collect donations.
How to ensure your donation is safe:
- Donate only through the charity’s official website or trusted platforms like Charity Navigator.
- Avoid unsolicited donation requests.
- Keep records of all charitable contributions for verification.
4. Package Delivery Scams
As online shopping surges, scammers send fake package notifications claiming you need to verify or update delivery details.
Protect yourself from package delivery scams:
- Track packages only through official retailer or carrier websites.
- Ignore unsolicited texts or emails with suspicious links.
- Contact delivery companies directly for confirmation if in doubt.
5. Social Media Scams
Fraudsters use social media to promote fake giveaways, sales, or promotions, tricking users into sharing personal data or making payments.
How to avoid these scams:
- Be wary of deals or offers that seem too good to be true.
- Verify the authenticity of giveaways before participating.
- Report fraudulent accounts and ads to the social media platform.
6. Fake Job Scams
Holiday job seekers are common targets for scammers offering fake employment opportunities. These scams often demand upfront payments or personal information.
How to stay safe when job hunting:
- Use trusted job boards or apply directly through company websites.
- Never pay fees for training, equipment, or application processing.
- Avoid employers who communicate only through text or social media.
7. Gift Card Draining Scams
Gift cards are a holiday favorite, but scammers have devised ways to steal their value before they’re even used.
Steps to prevent gift card scams:
- Inspect cards for signs of tampering, such as uncovered barcodes.
- Purchase from secure locations or reputable online sources.
- Register the gift card when possible to track and report fraudulent activity.
8. Phishing Emails and Fake Shopping Websites
Phishing emails and counterfeit websites are common during the holiday shopping rush. Scammers lure victims with fake deals on popular products.
How to spot and avoid these scams:
- Verify URLs for “https” and check for professional website design.
- Stick to known retailers and review return policies before purchasing.
- Avoid clicking on links in unsolicited emails; instead, type the retailer’s address directly into your browser.
What to Do If You Fall Victim to a Scam
If you suspect you’ve been scammed, take action quickly:
- Contact your bank to halt fraudulent transactions.
- File a police report with local law enforcement.
- Notify credit bureaus (Equifax, Experian, TransUnion) to place a fraud alert on your account.
- Report scams to the Federal Trade Commission (FTC) and the FBI Internet Crime Complaint Center.
- For scams involving mail, contact the U.S. Postal Inspection Service.
Stay Informed, Stay Safe
The holidays are a time for joy, not stress over fraud. By understanding these scams and taking precautions, you can protect yourself and your loved ones. Share this guide with family and friends to keep everyone informed.
Happy holidays, and may they be scam-free!
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Tony Gomes, Author, MBA
CEO and Founder
Advanced Wealth Management
Content Disclosure: The information here is general and educational. It is not a substitute for professional advice and does not constitute a recommendation. Forecasts and opinions are subject to change.
