How to Protect Yourself from Holiday Fraud

The holiday season is a time for joy, giving, and celebration. Unfortunately, it’s also a prime opportunity for scammers to target busy and distracted shoppers. During this festive time, cybercriminals and fraudsters use various tricks to steal money or personal information. This guide covers fraud over the holidays, tips to avoid scams, and what to do if you become a victim.

Common Types of Scams During the Holidays

Understanding the tricks used by scammers will protect you and your family from holiday fraud. Here are some common scams to watch out for:

1. Fake Charities

During the holidays, many people open their hearts (and wallets) to help others. Scammers exploit this generosity by creating fake charities, often using names similar to well-known organizations to trick donors. Fraudsters also frequently exploit recent events, such as natural disasters or humanitarian crises, to manipulate your emotions.

Defensive Strategies:

• Be careful of charities with names that closely resemble reputable organizations.
• Always research a charity before donating. Use trusted third-party platforms like Charity Navigator or GuideStar to verify legitimacy.
• Make donations directly on the official website—avoid clicking links sent through email or social media.

2. Gift Card Fraud

Gift cards are a favorite holiday staple, but they are also a go-to method for scammers. Some fraudsters tamper with cards in stores, scratching off the PIN and waiting to use the funds once the card is activated. In addition, other scammers trick people into sending them gift cards as a form of payment, often pretending to be from a utility company, family member in need, or even from the IRS.

Defensive Strategies:

• Only purchase gift cards directly from the cashier or through trusted online stores.
• Never use gift cards for payments unrelated to gifting.
• Remember that legitimate organizations will never ask for payment in gift cards.

3. Scam Delivery Messages

Scammers disguise themselves as delivery companies, sending texts or emails about "missed deliveries" or "tracking updates." These messages often contain harmful links designed to steal your personal or financial information.

Defensive Strategies:

• Always track your packages through official retailer emails or courier websites.
• Watch for signs of phishing, like spelling errors, suspicious phone numbers or email addresses, generic greetings ("Dear Customer"), or language that creates a sense of urgency.
• Avoid clicking on links in unexpected messages.

4. False Advertisements & Online Shopping Scams

Hoping to snag the perfect holiday deal? Scammers use fake advertisements and look-alike websites to lure you into purchasing non-existent or low-quality items. These fraudulent ads are commonly posted through social media platforms.

Defensive Strategies:

• If you come across an ad for a product you'd like to buy, research the retailer before making a purchase. Check customer reviews to learn about others' experiences and verify that the retailer’s contact information (such as a phone number or email) is legitimate and working.
• Be cautious of deals or prices that seem "too good to be true"—they are often scams.

How to Protect Yourself from Holiday Fraud

Being alert during the holidays can help you avoid stress and financial loss. Follow these key tips to stay safe:

• Verify Sources: Don’t trust unsolicited emails, messages, or ads without verifying the source. Always go to the official website or contact the institution directly.
• Guard Your Information: Never share your Social Security number, bank details, or passwords unless you can confirm the legitimacy of a request. Scammers are experts in tricking people into providing sensitive data.
• Never Send Money to Strangers: Avoid sending money to ANYONE you haven’t met in person, particularly if they reached out to you unexpectedly.
• Be Cautious with Social Media: Profiles can be hacked or faked. Even if the request comes from someone you know, verify before responding.
• Recognize Red Flags: Real government agencies will never ask for payment through social media, gift cards, or cryptocurrency. Also, if someone says that you have "won" something but demands money upfront, it's definitely a scam.

Action Steps for Fraud Victims

Sometimes, despite your best efforts, a scammer might succeed. Here’s what to do if you fall victim to a scam this holiday season:

1. Notify Your Financial Institution: Contact your bank or credit card company to report scams, especially if you sent payments or account details to fraudsters. You might also need to temporarily freeze your accounts to prevent further unauthorized transactions.
2. Update Passwords & Security Questions: Change your account credentials on all platforms to prevent unauthorized access in the future, especially the ones tied to financial or personal information.
3. Keep Records: Document all communication, including emails, receipts, or screenshots of scam interactions. This information will be helpful for investigators down the road.
4. Report the Incident: Notify local law enforcement, and file a complaint with the Federal Trade Commission (FTC), FBI Internet Crime Complaint Center (IC3), and the Consumer Financial Protection Bureau (CFPB). This helps protect others from falling for the same scam.
5. Alert Trusted Contacts: Let your friends and family know about the scam, especially if they are also at risk (like through hacked social media accounts).

Remember, acting fast can help protect your personal information and money from further damage.

Fraud Resources at Armed Forces Bank

The holidays are a time for family, joy, and giving—not for worrying about scams. Stay in the know, take a few simple precautions, and share what you have learned with others to keep everyone safe. A little awareness can go a long way in making sure we all enjoy a scam-free season.

At Armed Forces Bank, your security is our top priority. If you have an account at our military bank and think you have been targeted by a scam, here's how to reach out to us:

• METHOD 1: Log into your Online or Mobile Banking account and send a secure message via chat.
• METHOD 2: Use the chat feature at afbank.com and request to speak with a banker. (Monday - Friday, from 8:00 AM - 10:00 PM, Central Time; AND Saturday, 9:00 AM - 5:00 PM, Central Time).
• METHOD 3: Call the Armed Forces Bank Client Care line at 888-929-2265 for assistance. (Monday - Friday, 8 AM - 7 PM, Central Time).

Remember, Armed Forces Bank will NEVER ask for your personal details, account numbers, or passwords through phone, email, or text. Always verify suspicious requests, and feel free to reach out to us directly for more help!

Wishing everyone a safe and joyful holiday season!

FINANCIAL EDUCATION: Scams & Fraud; Preventing ID Theft; Reporting ID Theft; Fraud Alerts & Freezes; Mobile Security Tips; Visa Card Security; EMV Chip Technology.

FRAUD-SPECIFIC RESOURCES: General Cybersecurity; Common Scams; Safe Checking Practices; Military Scams; SIM Swap Fraud; Phishing Emails; Phone Scams; Text Scams; Pig-Butchering Scams; Crypto Investment Scams; Elder Financial Abuse; Business Fraud; Tax Return Security.