7 tips to avoid holiday scams and protect your identity

The holidays can bring joy, time off from work, and days spent with family—but they can also be accompanied by added stressors. Whether stretching finances to afford presents, struggling with travel plans or rushing to get everything done before taking a few days off, the extra expenses and pressure could make someone a prime target for identity theft or scams.

While the dangers are real, there are also things that can be done to protect yourself from falling victim to a scam or having your personal information compromised. Experian shares how to stay safe this season—and keep fraudsters from spoiling holiday cheer.

1. Practice Caution Shopping Online

Online shopping scams were among the riskiest scams in 2023, according to the most recent Better Business Bureau (BBB) Institute Online Scams Report. Not only are these scams common, but 82% of those targeted in online shopping scams reported losing money.

Steer clear of online shopping scams with these tips:

• Beware of online marketplaces. Practice extra caution or simply avoid shopping on sites like Facebook Marketplace, Craigslist, NextDoor, and other online marketplaces. If buying directly from a person and paying in cash, there won't be the same purchase protections as when buying from a reputable retailer or when using a credit card.
• Use traceable payment methods. If asked to pay using gift cards, cryptocurrency, or a wire transfer, that's a red flag that the transaction could be a scam. Instead, it may be better to pay with a peer-to-peer payment app that has purchase protections, such as PayPal or Venmo.
• Look out for "too good to be true" deals. One huge online shopping scam red flag is highly in-demand products at surprisingly low prices. Scammers create websites with realistic listings of scarce in-demand products, such as gaming consoles. Once a shopper checks out, they may get an order confirmation and then never receive their purchase.

2. Don't Fall for Phony Delivery Scams

The United States Postal Service was the organization most often impersonated by scammers in 2023, according to the BBB. These imposter scams often take the form of fake delivery notification texts designed to trick people into clicking a phishing link. If someone clicks the link, they land on a spoofed website that attempts to collect sensitive information, such as Social Security number, or downloads malware to your device.

It's especially tempting to click an unsolicited "tracking link" during the holiday season, when a mystery loved one may well have sent a gift. Unfortunately, criminals capitalize on this impulse, and fake delivery scams are especially prevalent during the holiday season.

To avoid fake delivery scams, simply do not engage with any text or email that prompts you to click links or hand over information. These could well be phishing attempts. Instead, track packages through trusted sources by logging in directly to a delivery service's website.

3. Safeguard Your Passwords

Take the time to consider your account security before the holidays to help minimize risk. Use these best practices for keeping your accounts secure:

• Use a unique password for all your accounts. If that seems like too much effort, consider using a password manager to establish difficult, individual passwords for you.
• Turn on multifactor authentication. Wherever possible, and especially with financial accounts, turn on multifactor authentication. This security feature requires users to take an extra step to verify their identity before they can log in, and it could help keep information safe if an account's password is compromised.

4. Check for Skimming Devices

When shopping in stores, check for card-skimming devices that may be attached to an ATM or card reader. Card skimming fraud is more prevalent than you might think: It's estimated to cost financial institutions and consumers over $1 billion each year, according to the FBI.

In this type of fraud, a scammer attaches a device called a skimmer to a card reader. Skimmers can be small and hard to detect, allowing your transaction to go through like normal. Unbeknownst to shoppers, the device copies a card's information so it can be used or sold later.

Even cards with an EMV chip can be "shimmed." Paying with cash or using a contactless payment option, such as a tap-to-pay card or digital wallet, are more secure options.

5. Don't Shop on Public Wi-Fi

It can be tempting to cross a few items off your list while you're out and about, but public Wi-Fi networks might not be secure. Hackers may be able to take advantage of unsecured Wi-Fi to capture sensitive information transmitted through the network. That's why it's wise to avoid taking care of holiday shopping, logging in to your bank account, or doing anything that involves sensitive personal or payment information when connected to an unsecured network.

A virtual private network (VPN) might keep some personal information secure, but it's still best to avoid logging in to accounts or making a purchase when you're using a public network.

6. Ignore Get-Rich-From-Home Job Ads

You may see ads about ways to "make $1,500 a week working from home." Seems fairly easy, and the extra money could certainly help during the holidays—except you may be inadvertently participating in a criminal enterprise.

You could be asked to act as a money mule or reshipping mule by moving money from one account to another, or accepting an item that's shipped to you and then reshipping it somewhere else. In either case, you may be caught in the middle of a fraud scheme. Even if you aren't knowingly committing a crime, you could wind up facing criminal charges.

If you're searching for ways to make extra money during the holidays, stay safe by using only trusted platforms or looking for local businesses that need seasonal help.

7. Verify Requests for Donations

Scammers may take advantage of people's generous nature during the holidays. They'll often send emails or make phone calls posing as representatives for charitable causes and use spoofing technology to make it look like the email or call is coming from a real charity. Instead of being used to help people, however, the money will go straight to the fraudster's pocket.

Check out an organization's website to find a legitimate phone number or online donation option before making a donation. If you're unsure about a charitable organization, you can also look it up on sites like Charity Navigator and CharityWatch.

Stay Safe This Season and Beyond

There's a heightened risk of falling victim to identity theft and fraud during the holiday season, especially as people work their way down their shopping list amid the frenzy of the season. The precautions above can help you to finish shopping and enjoy the holidays while protecting yourself from identity theft or fraud.