The holidays are a time for celebration, but they are also a busy time for scammers. From fake flash sales and delivery texts to AI-powered voice scams and charity frauds, threats are becoming harder to spot. Avoid holiday scams by staying informed about common tactics, using strong passwords, verifying purchases, and choosing secure payment methods, such as credit cards with fraud protection.
Key Takeaways:
- Recognize scam warning signs: Watch for suspicious delivery notifications, fake online stores, unexpected payment requests and , AI-generated impersonation scams, and fake delivery or missed package notices.
- Protect your accounts: Use strong, unique passwords and consider a password manager. Enable two-factor authentication (2FA) for added security. Secure your Wi-Fi network and use a VPN when on public Wi-Fi.
- Verify Before You Buy: If a deal seems too good to be true, it probably is. Verify the retailer’s reputation before you click “Buy.”
- Pay with protection: Use a credit card instead of a debit card since they usually offer stronger fraud protection if you do get scammed.
- Monitor & React: Set up transaction alerts and check your statements weekly. If you spot fraud, report it immediately to your bank and the Federal Trade Commission, and consider placing a fraud alert on your credit report.
6 Ways to Protect Your Wallet from Holiday Scams
1. Recognize the “6 Big” holiday scams
According to the 2025 FBI Internet Crime Report, there were 191,561 phishing/spoofing complaints, resulting in consumers losing almost $215,843,126. Therefore, knowing what to look for is the best defense against the big 6 holiday scams.
| Scam Type | How It Works | The Red Flag |
|---|---|---|
| Phishing Emails | Emails mimicking retailers or delivery companies (e.g., Amazon, FedEx) contain links designed to steal your data. | The sender’s address has typos (e.g., [email protected]). |
| Fake Online Stores | Fraudulent sites copy real brands to steal credit card information. | Prices are unrealistically low, and the site lacks credible reviews. |
| Gift Card Fraud | A seller demands payment via gift card, such as Apple or Google Play gift cards. | Requests to pay by sharing gift card numbers or PINs are a warning sign of a scam. |
| Charity Scams | Fake organizations exploit holiday generosity to solicit donations. | The charity’s name sounds similar to a real one, but you cannot verify the organization through multiple credible sources. |
| Non-Delivery Scams | You buy a product that never arrives or sell one and never receive payment. | The seller insists on wire transfers, gift cards, or payment methods that offer little or no buyer protection. |
| AI Voice Calls | Scammers use AI to imitate a loved one’s voice or impersonate your bank to get money or personal information from you. | The caller creates urgency or asks for money or sensitive information. A supposed loved one cannot provide your agreed family password. Hang up and call your loved one at a known number or your bank’s official customer service line. Set up a family password to help verify calls. |
2. Strengthen your online security
According to Wirecutter, a New York Times publication, “While you’re updating your passwords, turn on two-factor authentication for online accounts that support it. Enabling this feature, along with a unique password, makes your online accounts much harder for strangers to access and adds only a few seconds to your routine.”
Here’s how you can strengthen your online security
- Use a password manager: Use a password manager to generate complex and unique passwords for each of your accounts. Never use the same password on two accounts. Use a password manager to store them securely.
- Enable Two-Factor Authentication (2FA) whenever available for an extra layer of security. This requires a second form of verification, such as a text message code, in addition to your password.
- Secure Your Wi-Fi Network: Ensure your home Wi-Fi network is password-protected and use a Virtual Private Network (VPN) when accessing public Wi-Fi to encrypt your data.
3. Shop smart, shop safe
As you hunt for the best deals, keep safety at the forefront:
- Verify Deals and Discounts: If a deal seems too good to be true, it probably is. Compare prices and check the retailer’s reputation before making a purchase.
- Use credit over debit: Credit cards can offer stronger fraud protection and easier dispute resolution than debit cards. Be sure to pay off your balance at the end of the month.
- Avoid Public Wi-Fi for Transactions: Avoid shopping on public Wi-Fi networks without a VPN. If you must shop, use mobile data to make purchases rather than public Wi-Fi.
4. Monitor your financial accounts regularly
Don’t wait until your monthly statements to check for unauthorized transactions. Make it a habit to keep track of your accounts regularly.
- Review pending charges on accounts: Scammers often test a card with small charges (under $5) before making a large purchase. Report these immediately.
- Set Up Alerts: Most banks and credit card companies offer alerts for large transactions or unusual spending patterns. Enable these alerts to stay informed of activity on your accounts.
5. Educate yourself and loved ones
Scammers often target vulnerable demographics because they are easier to reach and less tech-savvy.
- Stay Informed: Keep up to date with the latest scams by following consumer protection websites and news outlets.
- Teach Family Members: Discuss common scams and safety measures with family, especially those who may be more vulnerable, such as elderly relatives or young adults new to managing their finances.
- For example, teach young adults and students how to identify a secure checkout URL and warn elderly relatives about AI voice scams that may sound like a grandchild in distress.
- Use Trusted Resources: Instead of relying on social media for financial advice, encourage family members to consult nonprofit organizations and high-authority sites for information.
- And don’t be embarrassed; we all fall for scams at one time or another. Just act fast and don’t let it turn into a bigger problem.
6. Action Plan: What should I do if I fall for a scam?
Here’s what to do if you have been targeted.
- Report the Scam: Contact your bank or credit card company immediately to report unauthorized transactions. They can help you secure your accounts and potentially recover lost funds.
- File a Federal Complaint: Report the scam to the Federal Trade Commission (FTC). This helps authorities track scams and prevent others from falling victim to them.
- Monitor Your Credit: Consider placing a fraud alert on your credit report and regularly review it regularly for unusual activity. This can help prevent identity theft.
- Assess the Financial Damage: If a scam has drained your checking account or maxed out your credit card, don’t panic. Reach out to a nonprofit like ACCC for help prioritizing your remaining bills and avoid falling into a debt cycle while the bank investigates.
Bonus Tips from ACCC Credit Counselors
We asked our certified credit counselors for tips on avoiding scams, and this is what a few of them said:
- “Watch out for pressure tactics! If someone contacts you and tells you that you must act immediately or risk losing money, being arrested, or having your account closed, that’s a major red flag. Hang up and contact the company that is supposedly contacting you directly by using phone numbers on its official website, your bank statements, or the back of your debit or credit card to verify.” – Deana Spinelli, ACCC Credit Counselor.
- “If you are receiving calls from companies that are unsolicited, it should be a red flag. Before you get involved with a company, research them and check online reviews to validate their legitimacy”- Richard Dunkless, ACCC Credit Counselor.
- “Protect your money: pause before you pay, verify before you trust, and remember that if an offer seems too good to be true, it probably is.” -Kyle Liseon, an ACCC Senior Administrative Credit Counselor.
The Best Way to Avoid Holiday Scams This Year
Protecting your wallet this holiday season requires more than hope; it requires action. By treating every unsolicited message with skepticism and locking down your accounts with 2FA and strong passwords, you can stop scammers before they strike. If you feel unsure about something, don’t be embarrassed; it is better to ask a friend or loved one than to fall victim to a scammer.
If you need help navigating holiday debt or budgeting issues, we are here to help, too. Contact us for assistance.
Frequently Asked Questions
Q: How can I strengthen my online security during the holiday season?
A: Strengthen your online security by using strong and unique passwords for each account, enabling two-factor authentication (2FA) whenever possible, securing your Wi-Fi network, and using a VPN when accessing public Wi-Fi.
Q: What should I do in response to an unexpected message?
A: Do not share passwords, one-time verification codes, Social Security numbers, full bank account numbers, or credit card details in response to an unsolicited call, text, or email. Call your bank or credit card company directly to verify the authenticity of the messenger.
Q: What should I do if a seller insists that I pay with a gift card?
A: Stop the transaction. Requests for gift cards, cryptocurrency, wire transfers, or cash are major warning signs because these payments can be difficult to reverse. Verify the business before payment through credible sources, such as the BBB.
Q: What is smishing, and how’s it different from phishing?
A: Smishing is phishing conducted through text messages or messaging apps. Scammers use urgent messages and links to persuade recipients to reveal information, download malware, or send money.
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