Fighting Fraud
By Better Business Bureau Serving Greater Cleveland
During the holidays, scammers ramp up their efforts to exploit the season’s hustle, generosity and emotional energy. The Better Business Bureau (BBB) has issued its annual “12 Scams of Christmas,” warning consumers to stay alert and avoid common holiday fraud pitfalls. Here’s a breakdown of these 12 scams:
1. Misleading Social Media Ads: Scammers use social media platforms to post deals that look too good to be true, including deeply discounted products, free-trial bait, or limited-time offers. Consumers often pay and never receive the item, get stuck in recurring billing for “free trials,” or receive counterfeits far inferior to what was advertised.
Tip: Research the seller on BBB.org and read reviews before purchasing.
2. Social Media Gift Exchanges (a.k.a. “Secret Sister”): These schemes often present themselves as fun, pay-it-forward gift exchanges. Variations include “Secret Sister,” “Secret Santa Dog,” or “$10 gift bottle swaps.” But many of these are actually illegal pyramid schemes, and participants end up giving money or gifts to strangers, often without receiving anything in return.
Tip: Avoid these types of gift-sharing setups. If you do participate, verify whether the organizer is legitimate and trustworthy.
3. Holiday Apps: There’s no shortage of holiday-themed apps, including video chats with Santa, virtual advent calendars, sleigh tracking, and more. But some of these “free” apps collect excessive data, serve up malware, or come filled with intrusive ads.Tip: Read privacy policies, check reviews, and be cautious of free apps that ask for lots of permissions.
4. Fake Toll-Collection Texts: If you’re traveling during the holidays, you might get a text claiming you’re overdue on a toll payment. These texts often include a link. If you click, you risk landing on a phishing site or giving scammers your financial info.
Tip: Don’t click links in unexpected messages. Instead, verify your account or balance using the official toll agency’s website or app.
5. Free Gift Card Scams: Scammers send phishing emails or texts promising “free” gift cards. In reality, these messages aim to collect your personal information or get you to click on malicious links.
Tip: Mark these messages as spam. If you opened one, don’t click any links.
6. Temporary Holiday Jobs: Seasonal work is popular during the holidays, but scammers exploit that. They post fake job listings that ask for personal data or payment (“training fee,” “background check”) up front without having a legitimate job available.
Tip: Research the employer. Legitimate companies rarely require you to pay for a job.
7. Impostor / Look-Alike Websites: Scammers create websites that mimic legitimate retailers or brands. These look-alike sites trick users into thinking they’re shopping safely, but they might steal your payment info or install malware.
Tip: Double-check URLs carefully and use credit cards for better fraud protection.
8. Fake Charities: During the season of giving, fake charity solicitations skyrocket. Scammers may impersonate real nonprofits or completely fabricate organizations.
Tip: Verify charities on reputable platforms like BBB’s Give.org before donating.
9. Fake Shipping Notifications: With all the online shopping, people expect package delivery alerts, but scammers mimic shipping companies (like UPS or FedEx) to trick you with phishing links or malware.
Tip: Don’t click links in unsolicited delivery messages. Use official retailer confirmation emails or your order history to track packages.
10. Pop-Up Holiday Virtual Events: Scammers increasingly host fake “holiday markets” or virtual craft fairs. They may charge admission for events that never take place or steal payment information during the registration process.
Tip: Verify event legitimacy through organizers, reviews, or trusted event platforms.
11. Holiday Wishlist / Hot Toy Scams: Everyone wants the season’s most popular toy, but scammers prey on that demand. They list high-demand or luxury items at steep discounts, but what you receive (if anything) may be a cheap knockoff or nothing at all.
Tip: Buy from reputable retailers. Research the seller, and be skeptical of unusually low prices.
12. Puppy Scams: The holidays make many people think about adding a pet to their family, but online pet ads often turn out to be fraudulent. Scammers demand payment up front for puppies that don’t exist or aren’t as advertised.
Tip: Always see a pet in person before paying. Use reputable adoption agencies or breeders, and don’t wire money to sellers you haven’t verified.
For more tips and resources, visit BBB.org. To find businesses in your area, go to BBB.org/Search. Have additional questions? Reach out to your BBB at 216.241.7678 or [email protected]. Have a scam to report? Report it to BBB.org/ScamTracker.
