How to avoid online holiday scams and what to do if you fall for them

WASHINGTON - It's the holiday season – and that means scammers are working around the clock trying to find new ways to take your hard-earned money.

Deputy Director for Maryland's Consumer Protection Division, Alisa Bralove-Scherr, says some of the most frequently reported scams, especially around the holidays, are tied to social media and shopping online.

Bralove-Scherr says scammers often publish rogue social media sites that mimic those used by legitimate and well-known businesses.

"It can absolutely be an ad, something that you click on that takes you to a website that is not the website for the company that you think you're dealing with," she said. "It can also just be some overseas company that has no intention of ever sending the product that you think you're buying."

Data released this year from the Federal Trade Commission shows that scams originating on social media platforms have accounted for $2.7 billion in reported losses since 2021. During the first half of this year, the most frequently reported scams on social media were related to online shopping, FTC figures show.

"In general, trust your gut," Bralove-Scherr says. "If something seems too good to be true, it's because it is."

Here are some ways the FTC says you can steer clear of holiday scams on social media:

- Limit who can see your posts and information on social media. All platforms collect information about you from your activities on social media, but visit your privacy settings to set some restrictions.

- If you get a message from a friend about an opportunity or an urgent need for money, call them. Their account may have been hacked—especially if they ask you to pay by cryptocurrency, gift card, or wire transfer. That's how scammers ask you to pay.

- If someone appears on your social media and rushes you to start a friendship or romance, slow down. And never send money to someone you haven't met in person.

- Before you buy, check out the company. Search online for its name plus "scam" or "complaint."

Here are some additional tips from the FBI on proactively avoiding online holiday scams:

- Do not click on emails/texts from unknown senders.

- Independently verify the legitimacy of websites before providing personal and financial information.

- Conduct a business inquiry on the Better Business Bureau's website (www.bbb.org) of the online retailer.

- Steer clear of unfamiliar sites or ads that offer items at unrealistic discounted prices - if a deal from an unknown seller seems too good to be true, it more than likely is.

- Be wary of online retailers who use a free e-mail service instead of a company e-mail address.

- Beware of purchases or services that require payment with gift cards, cryptocurrency or wire transfers.

- Secure all financial accounts with strong passwords or passphrases.

- Thoroughly check credit card statements; and if possible, consider setting up credit card transaction auto alerts.

- Never make purchases using public Wi-Fi.

- Always get a tracking number for items purchased online, and track orders through your original confirmation e-mail.

- Purchase gift cards directly from a trusted merchant.

- Ensure the anti-virus/malware software is up to date on your computer and block pop-up windows.

According to the FBI's 2021 Internet Crime Report, the Internet Crime Complaint Center received a combined 108,869 complaints of non-delivery/non-payment crimes in 2021, totaling over $337 million in losses to victims.

Other scams to be mindful of this holiday season include:

- Gift Card Scams (Victims receive a spoofed e-mail, call or text asking them to purchase multiple gift cards for personal or business reasons.)

- Charity Scams (Criminals set up fake charities and profit from persons who believe they are donating to a legitimate organization. Verify a valid Taxpayer Identification number by calling the charity directly or visiting their website.)

- Smartphone App Scams (Scammers design mobile apps designed as free games that steal your personal information.)

What to do if you fall victim to a scam?

The FBI recommends taking the following actions if you find you've been victimized by an online scam:

- Contact your financial institution immediately after discovering any fraudulent or suspicious activity and request they stop or reverse the transactions.

- Request your financial institution contact the corresponding financial institution where the fraudulent or suspicious transfer was sent.

- Report the activity to the FBI's Internet Crime Complaint Center at www.IC3.gov, regardless of the dollar loss; documenting all relevant information in the complaint.

You can also report fraud, scams, and bad business practices at ReportFraud.ftc.gov.

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