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Holiday Season Scams: How to Stay Safe in 2023

Posted October 23, 2023 in Member Tips
Photo of Jonathan Smith
by Jonathan Smith
Fraud Operations Manager, CFE

The holidays are quickly approaching again. Traditionally, holiday season marks a time in which fraudsters ramp up their scams and schemes. As we have talked about in past holiday seasons, the top two frauds most prevalent during the holiday season as reported by the FBI are non-delivery and non-payments schemes. In a non-delivery scam consumers purchase goods which they never receive and in a non-payment scam, sellers send items to a consumer but never receive payment for the item. As with most scams, verification is vital prior to purchasing or sending any merchandise.

In 2023, fraud saw an increase in social engineering scams and schemes. These types of frauds use psychological deception designed to exploit human vulnerabilities. Fraudsters use fear, empathy, affinity, authority, and even curiosity to lure members into a phone call, text, email, or some interaction to start their fraud. A large portion of social engineering start with Phishing phone calls and Smishing (SMS) texts messages. The fraudsters use information collected from open-sources to create a lie or deception baiting a conversation with members. Always be wary of unsolicited phone calls or text messages even if the number is known. Remember, a best practice is to disconnect or cease a conversation and verify the solicitor. This can be done with a call back, researching the person that is requesting information, or contact local authorities or fraud experts for help. Legitimate businesses, services, or providers will understand, follow, and allow this best practice for your safety and theirs.  

Tips for Holiday Scams

  • Verify websites for purchasing merchandise
  • Double check URL information by hoover over the link with a cursor or mouse
  • Do NOT click on suspicious websites or social media posts
  • Do NOT click on hyperlinks in emails or texts
  • Be suspicious of phone calls from unknown numbers
  • Be suspicious of links asking to update passwords or account information
  • Never send money directly to a seller via wire
  • Avoid paying with a gift card
  • Use a credit card for payments and check the statement regularly for suspicious transactions
  • Avoid donations, charities, or fundraisers that must be done immediately or pressured for time
  • Look closely at items that are deeply discounted with online purchasing
  • Be wary of offers that seem “to good to be true”

As always, if you are ever suspicious of information about to purchases, donations, sending funds, or fraud related matters, you can contact Coastal’s Fraud Department at 919-420-8000 or 800-868-4262.

Tips for Holiday Scams Infographic