The Five Scams of Christmas

The holiday season is a time for giving. But scammers would rather give, than receive. They are working overtime to give people a blue Christmas. However, you can keep accountholders’ spirits bright. Here are the five scams of Christmas, with tips on how to avoid them. 

The Five Scams of Christmas 

Card declined scam

In this scam, a shopper goes through the steps of making an online purchase, but they receive a “card declined” message instead of a confirmed order. Confused why their order didn’t go through, an accountholder decides to try again or use a different card, only to end up with the same "error”. However, the order was confirmed on the scammer’s fake website, who now has the shopper’s personal and financial information.  

Avoid this scam by encouraging your accountholders to look closely at the website they are on. Make sure they check to see if the domain is spelled correctly, or if there are any extra subdomains tacked onto the URL. Also, remind accountholders to be weary of any deals that are too good to be true. Those could be a phishing attempt.

Fake delivery notification 

This scam is also designed to take advantage of online shoppers. Except in this scam, a shopper receives a fraudulent email or text message about their order. Scammers, pretending to be legitimate retailers or shipping companies, will send emails or text messages notifying people on the status of their order, hoping the person on the other end clicks on their malicious link. 

As with the card declined scam, educate your accountholders to verify any URL or email domain before clicking. If they do click on the link, tell them about the red flags. No legitimate business will ask an accountholder to re-enter personal information or pay an additional fee to receive an order they’ve already paid for.  

Gift card scam 

Gift cards are always a popular gift for anyone who is hard to shop for. Scammers know this as well. They will either put their own barcode on the card or take down the card numbers to get instant access to the funds the moment the card is activated at the checkout line.   

To prevent a grinch from stealing their gift, tell your accountholders to look over the gift card before purchasing. Have them slide their finger across the back to feel if there is a sticker over the actual barcode. Also, have them check to ensure the packaging around the card hasn’t been opened and resealed. And remind them that gift cards are for giving, not making payments.

Charity scams 

The holidays are a critical time for charities as a large percentage of their annual donations happen during the holiday season. Fraudsters know this and try to take advantage. They'll use fake sites or telemarketing tactics to turn someone’s goodwill into their good fortune.  

Make an accountholder’s donation count by reminding them to do their research on a charity before they give. Have them pay attention to how they want an accountholder to pay. It’s likely a scam if a charity asks for payment in cryptocurrency or a wire transfer.  

Seasonal work scams

Many retailers seek temporary help to make sure the holidays are holly jolly for shoppers. Scammers attempt to take advantage of this by posting fake job postings for real employers, hoping they fill out and submit a bogus job application.   

To ensure accountholders are making an extra buck instead of losing it to a fraudster, tell them to directly apply for the job on the company’s official site. Some red flags on a job posting include a much higher than average wage or an instant job offer. Additionally, any employer asking applicants to pay for supplies or an application fee before they are hired is likely a scam.  

Keeping the holidays merry and bright 

It is important that everyone remains vigilant about these social engineering attacks this holiday season. Educating accountholders about humbugs and their holiday schemes is not only good for business, it also builds trust and loyalty. Remind accountholders not to share their account number, debit card number or social security number, even if they receive a call, text or email from someone claiming to be from your financial institution or SHAZAM. When in doubt, cardholders should hang up and call your financial institution or SHAZAM directly.   

Source: The Five Scams of Christmas - SHAZAM