How to Avoid Holiday Scams

 The holiday season is one of the biggest times of the year for scam artists and identity thieves. While most people are busy holiday shopping, criminals are busy scamming the unwary. Don’t let this happen to you. Learn about the various scams that occur every year, and what you can do to protect yourself this holiday season.

Do you remember the data breach affecting Target customers last year? Experts believe most companies have had such data breaches by now, so it may be safe to assume that bad guys already have some information that could be used against you. A good way to protect yourself from possible data breaches is to use cash. If you plan to do any holiday shopping online, experts recommend using a separate credit card with a small credit limit. With credit cards, you have a little time between purchase and paying your bill. If you get an unknown transaction during this period, you have a chance to dispute it.

Maybe you’re already aware of problems with opening spam e-mail. Scammers may send fake advertisements for store deals and fake notifications about package deliveries. Make sure not to open these e-mails, and be especially careful not to download any unknown attachments. It is important that you have strong passwords for your online shopping accounts, especially if you have provided credit card information for that account. Never click on links that offer free gifts. Those are most likely phishing scams.

When looking for great deals online, you may be safer with established retailers, though of course they all may be vulnerable to data breaches. Avoid online stores that you don’t know about because they could be trying to scam you. Of course, many smaller online retailers may provide excellent service, but you will do well to check them out before ordering from them. Be sure to search online (away from their Web site) for information about these stores; read reviews of their service to make sure it is safe and legitimate. Also, if you order online, request that your package be delivered to your Post Office box or your local UPS or FedEx store. Package theft occurs all the time.

Lastly, before donating to any charity, be sure to research the organization to make sure it is legitimate, and that enough of your money will go toward the actual cause. You can find information on any charity on www.charitynavigator.org.

READERS, what do you think?

1.     What are your thoughts about setting up a separate credit card for online shopping? Do you think it is a good idea, or a bad idea? And why?

2.     What about sticking to cash purchases? How do you think that could protect you from fraud? Do you see any drawbacks to using cash?

Reference:

Anand, P. (2014, November 27). 6 Holiday scams and how to protect yourself. Marketwatch.com. Retrieved December 1, 2014, from http://www.marketwatch.com/story/6-holiday-scams-and-how-to-protect-yourself-2014-11-26?page=1.