Holiday scams and scams to avoid in 2024 – Forbes Advisor Australia

Scammers don’t take holiday breaks, but by being vigilant, you can protect your money, your purchases, and your identity from being stolen during the gift-giving season.

Here are some common scams and how to avoid them.

1. Advertising on social media platforms

One fast-growing online shopping scam involves advertising on social media sites. Over the past few years, Australians have lost a record $3.1 billion to scams, according to the ACCC’s latest Target Fraud Report. Social media was the second highest in terms of reported losses, equaling $80.2 million.

“Online shopping scams involve scammers pretending to be legitimate online sellers, using a fake website or setting up a fake profile on a genuine website or social media platform,” the report explains.

“Fake ads, social media profiles and reviews are easily and cost-effectively deployed. This makes scams incredibly difficult to identify.”

Solution: Rather than buying a product through the ad on social media, find the company online at its real IP address and see if it offers the same item and price as advertised. You can also search for a similar product on a more reliable website such as Amazon or at large retailers such as Kmart and Myer, where you can opt for a personalized pickup.

2. Package delivery theft

Having a package stolen is always a headache, but it can be especially bad in November and December. A private study conducted by Forbes Advisor found that approximately 38% of participants had recently had packages stolen and had been a victim of package theft. At this time of year, those packages also tend to contain more valuable items that can be harder to replace — especially in time for holiday releases.

Solution: Install a security camera in the area where your packages are delivered. This can act as a deterrent and help authorities catch whoever is responsible if they are caught. If you are concerned about packages sitting outside your home, have packages delivered to a safer location such as a mailbox or your office, or to a friend or family member who can be present for delivery. If the package contains an expensive item, you may also consider paying a little extra for shipping insurance or requiring a signature for delivery.

3. Gift card scams

Gift cards are a convenient way to give during the holidays. Watch for unusual fees that could add to the purchase price or drain your card’s value. However, in one common scam, someone claims to be a family member or friend who needs money and insists that you give it to them in the form of a gift card.

Solution: If someone demands to be paid with a gift card, assume it’s a scam and refuse, warns the ACCC. When you do buy gift cards, try to do it in person at your financial institution, a grocery store, or another retailer to ensure it’s legitimate. But be aware of the fees. The fee amount should be printed on the packaging, or the retailer should be able to tell you when asked.

4. Charity scams

Australians tend to give more to charities during the holidays, when they’re feeling generous or when they want to make tax deductions before the end of the calendar year. Scammers try to take advantage of this through fake online charities. Some call you by phone to request a donation or thank you for a non-existent donation and then ask for payment.

Solution: It’s best to stick with well-known charities or groups that you’ve successfully donated to in the past. You can also research any charity online through websites such as the ACNC Charity Register, a free online database of charities registered and regulated by the ACNC. It contains useful information about charities, including operating locations, programs and financial information. Do not give money to anyone who calls unsolicited and demands immediate payment. A legitimate charity will take your contribution at any time. And don’t donate money by gift card, cryptocurrency or bank transfer.

Related: Top 5 Cryptocurrency Scams (and How to Avoid Them)

5. Vacation rental scams

Travel scams are common during this time of year as families look for vacation spots to celebrate the Christmas season together. Scammers will post beautiful rental properties online that don’t actually exist or market a “free” vacation that actually comes at a hefty price. Once you show interest, they often try to get you off the app to communicate directly with them and submit payment, which reduces traceability so it will be difficult to get your money back. Furthermore, some Airbnb hosts have recently been found to cancel pre-existing bookings and then charge the individuals to rebook at a much higher rate.

Solution: Always book vacations through well-known travel sites like Expedia, Booking.com and Flight Center. Keep the conversation and transaction within the app or in person, if possible. You can also book your trip with a travel credit card, which offers more protection, and consider travel insurance in case there are delays or cancellations during your trip.

Related: Cheap Travel Insurance: How to lower your premiums