How to Avoid Holiday Scams & Charity Fraud

The holiday season is a time to gather with family and friends to share memories and exchange gifts. It’s also when cybercriminals step up their efforts to steal away good intentions including your credit card number and personal information. 

To help protect you from identity theft during the holidays, we’ve gathered some tips on how to safely shop and give to the charities that are most important to you.

Charity Scams

Many charitable donations are given in December. Scammers know this so they create fake charities and start telemarketing efforts to trick you into placing your donation into the wrong hands. The advice below from the Federal Trade Commission and AARP will help you make donations wisely after verifying sources.

1. Social media scams

Some common scams on social media sites during the holidays can be a promotion or contest which offers a gift for completing an online survey. There might be a story of someone in need who has fallen on hard times which is especially difficult during this time of year. Be wary of clicking on any links as these are imposter scams intended to steal your personal information. 

There are other ways to give back during the holidays such as donating directly to a trusted local non-profit organization that helps those in need.

2. Research the charity’s website

The first step is to locate information regarding the charity’s mission and programs. This should be easy to find on the charity’s website under headings such as ‘about us’ or ‘learn more’. If you can’t find detailed information about how the charity will use your donation and where the charity is located within the United States, it’s best to move on and find another organization.

In some states, a fundraiser and charity are required to register with the state regulator. You can check your state's charity regulator for this information. 

3. Check out charity watchdog groups

A charity watchdog group is a useful way to determine if a charity is legitimate. Watchdog websites such as www.CharityNavigator.org and www.CharityWatch.org are reliable sources that take a deep dive into researching many charities to identify any red flags and how efficiently they will use your donation. These watchdog groups, which allows you to search by topic, lists the top-rated charities and monitors for potential fraud. 

4. Donate via the charity's official website

If you want to play it safe when considering donating to a charity, you can give directly through the charity’s official website. Most legitimate charity organization websites use .org, not .com.

There may be times when you are asked to donate from someone in person who pretends to be acting on behalf of a charity. Always verify what the representative is fundraising for by contacting the organization directly via the information provided on the charity’s website. If the individual is hesitant to provide the information, they may be a scammer. 

If you are considering making a donation via check, you will want to make the check payable to the actual charity’s name and not to an individual. If you donate via a credit card, be sure to check your statements to ensure the donation occurs as you intended it too.

5. Delivery scams

Holiday packages can become part of the scammers scheme. Fake phishing emails and text messages are made to look like they are coming from the USPS, FedEx or UPS. They are sent with urgent messages claiming the shipment is on hold due to an incorrect address or insufficient postage, or an update is available regarding the delivery date all to lure you into providing your personal information. 

Unsuspecting consumers are thinking that they need to pay for extra postage or reschedule the delivery which plays off people’s desire to get their packages on time with no delays. The link goes to a website that has dangerous malware that can infect a device. You must be wary of these types of notifications by looking for misspellings or incorrect grammar as these are classic signs of identity theft danger. Don’t click on any links unless you can verify that it’s legitimate. If you’re suspicious of a tracking number check it out.
 

Additional Holiday Scams

Job scams

There are lots of opportunities to take on a part-time job during the busy shopping season. Scammers create fake job postings where job seekers provide personal information such as a bank account number so their paycheck can be direct deposited. Visit or call the business to ensure the job listing is legitimate before sharing any personal information.
 

Payment Scams

If you are looking for a unique gift for that special someone, you might find it through social media or another online marketplace. 

When it comes time to make the purchase, you may be asked for a phone number to make payment via peer-to-peer payments, also known as P2P, to apps like Zelle, Paypal or Venmo. If you do plan to use P2P to purchase a gift, check to see if your payment app allows you to link a credit card rather than a debit card or bank account. Most credit cards offer additional protection in case you do not receive the goods or services that you have purchased. You’ll want to think twice before deciding to make a purchase until you can confirm that the seller is legitimate.
 

Gift Card Scams

One of the most common gifts during the holiday season are gift cards since they are easy to purchase and something everyone can use. However, online scammers find them to be the ideal way to steal your funds. If you are in the market to purchase a gift card, be sure to only purchase them from official retailers and not unauthorized distributors.

You’ll want to be wary of free gift card offers on social media, even if the advertisement features well-known brands. If you receive any unusual requests for gift cards during the holidays, contact the individual by phone to confirm the request is legitimate.
 

What can I do if there is charity fraud?

If you become a victim of charity fraud, contact local law enforcement, your state consumer protection office and the FBI at   tips.fbi.gov or report online fraud to the FBI's Internet Crime Complaint Center. You’ll need information including how you were approached to donate such as email, social media, text or phone call; the name of the group or person that the funds were supposedly being raised for; the date you sent your donation; and how much you donated.

Giving to others makes the holiday season feel brighter. If you are considering making a donation, be sure to research the charity so that your efforts and generosity can be directed in the right ways.

Learn more about protecting you and your family from fraud.