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Dec 3, 2024, 6:24 AM CST
OSHKOSH, WI- (WISS & WGBW) – According to the AARP, 80% of Americans were targeted by at least one holiday scam last year. Of those targeted, 48% fell victim to holiday scams, lost money, or exposed private data.
“The holiday season is a critical period where alertness is key, as scammers are increasingly targeting those that might have a brief lapse in judgment because people find themselves caught up in the holiday spirit,” stated Grant Wheat, Vice President of Risk Management at Verve, a Credit Union. “Scammers have become more sophisticated over time, making it essential to recognize the warning signs and protect yourself from potential scams this holiday season.”
Wheat says that scamming has become so prevalent that it is a global business.
“This has become its own commerce. Fraud scams is its own business now, and in the U.S. alone, last year an estimated 130 Billion dollars of American wealth was transferred to scammers,” Wheat said. “Globally, we’re looking at over a 3 trillion dollar business.”
In 2024, prevalent holiday scams include:
Fake Charities – Scammers will create replica sites to mimic the appearance of a legitimate charity’s website. They may also use fake social media campaigns and fundraising sites to trick people into making donations.
Gift Card Scams – Fraudsters try to catch you off guard and trick you into giving up the numbers on the backs of gift cards.
Holiday Vacation Scams – Scammers may try to sell flights, holiday accommodations, or holiday getaways that don’t exist. They may also direct unsuspecting holiday-goers to fake websites to steal their personal details and payment information.
Lookalike Online Stores – Scammers will create online stores with deeply discounted prices to trick you into buying from them. If you do, they’ll either steal your credit card number or force you to use payment methods that can’t be reversed – such as wire transfers, payment apps like Zelle, or gift cards.
Wheat said being aware of scammers is especially important during the holiday months.
“The reason this is so big during the holidays is that people are just happy to give right? This is a great time. Everybody feels rejuvenated when it’s in the holidays. Everybody seems upbeat and you just want to give, right? You want to help out. That’s all in the holiday spirit. So scammers take advantage of that,” he said.
Wheat encourages consumers to slow down, talk to someone they trust, and to look for red flags such as spelling, grammar, and odd email addresses or contact methods before acting on anything that seems too good to be true.
“Slow down. Try to use that discernible factor. Trust, but verify. If it seems too good to be true, then it probably is. Right?” Wheat said. “So, from websites to charities to payment ways. If it’s not something you’ve done before, or have taken advantage of before, if it seems too good to be true, then it probably is.”
Risk management professionals say 57 thousand Americans fall victim to a scam every day. Wheat adds that this time of year is ripe for the scammers to strike.
“Before you do anything at all, before you take the money out, before you transfer anything, before you go buy gift cards, reach out to your financial institution,” Wheat said. “No matter your financial institution, we’re looking to help you. We want to help you. We want to be your partners and all this. So you don’t feel taken advantage of.”
Verve, a credit union, is educating people on holiday scams and giving away gift cards at the same time at Bah Humbug to Holiday Scams. From now until Sunday, December 15, Wisconsin and Illinois residents can test their fraud detection skills. Each week, people will see one new mock fraudulent holiday scam message and answer a multiple-choice quiz. One random participant will be selected each week to win a $25 gift card.
Test your fraud knowledge at https://verveacu.com/bah-humbug-holiday-scams-quiz/.
