With the holiday season approaching, the focus shifts to gift-giving and holiday shopping. However, the festive cheer also attracts scammers looking to exploit unsuspecting buyers and sellers. According to the FBI, the 2022 holiday season saw nearly 12,000 victims reporting losses exceeding $73 million due to online scams. In this blog, Sunset Finance provides some insights on how to avoid online shopping scams and cyber threats.
The National Retail Federation projects record-breaking holiday spending of around $960 billion, making it an enticing time for scammers. Here are some of the most common online scams and fraud schemes to be aware of:
Scam: Deceptive emails advertising sought-after items from unverified sources. Fake emails that look like they are coming from a well-known retailer.
Solution: Verify the sender's legitimacy; avoid clicking on links or providing personal information.
Scam: Unrealistic discounts and bargains on untrusted websites or social media posts/ads.
Solution: Shop from reputable websites and verify deals with trusted retailers.
Scam: Online surveys designed to steal personal information.
Solution: Avoid participating in unsolicited surveys; protect personal details in online forms.
Scam: Fraudulent pet adoption sales online to get your bank information or a lump sum of money.
Solution: Confirm the pet’s existence through in-person visits or video chats; use reputable breeders or Humane Societies.
Scam: Sellers requesting payment through unprotected online methods.
Solution: Use secure payment platforms; avoid sellers or websites with suspicious payment requests.
Scam: Unexpected subscriptions leading to unauthorized charges.
Solution: Read and understand subscription terms; monitor financial statements for unusual activities.
Scam: Fraudulent advertisements on social media platforms.
Solution: Avoid purchasing directly from ads; verify the company on its official website or trusted retailers.
Scam: Fake package tracking codes being used by fraudulent sellers to make buyers think they have made a successful purchase and their package is in transit to delay fraudulent charge reports.
Solution: Always check the retail site’s legitimacy and shipping policies. Opt for shipping insurance, and verify any purchase tracking codes directly with the trusted retailer quickly after purchasing.
Scam: Fake online charities seeking donations.
Solution: Stick to well-known charities or charities in your local community; research the charity online and avoid immediate demands for payment.
Scam: Fraudulent vacation rentals and discounted travel offers are advertised online.
Solution: Book your travel through reputable travel sites, and consider travel insurance.
Here are some helpful tips from the FBI’s Internet Crime Complaint Center on how to keep yourself and your finances safe when making online purchases during the holiday season and throughout the year.
If you fall victim to a scam, there's no need for shame, but quick action is crucial:
As you gear up for holiday shopping, remember that awareness is your greatest defense against scams. Sunset Finance is here to help when unexpected things happen.
If an online shopping scam has already impacted you, you’re not alone. It can take time to rebound, but if you have a professional on your side, you can weather the storm much more quickly.
To ensure you’re able to keep up with your bills and other financial commitments after a scam, consider starting with a small installment loan from a trusted company like Sunset Finance.
A small installment loan can keep you from defaulting on your financial obligations and help you maintain a spotless credit record, even after being hit by cybercriminals.
You’ll also want to contact all of your financial institutions to alert them about what happened. This way, they can provide you with insights into steps and safeguards you can take to avoid any similar situation occurring in the future.
We encourage you to stay vigilant, adopt protective measures, and report any suspicious activity. Safe shopping, and may your holidays be joyous and scam-free!
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