It’s the heart of the holiday season and people are in a giving mood.
Merchants, both brick-and-mortar and online are vying for your Yuletide dollars. But crooks and scammers also are out for your hard-earned holiday dough and are constantly coming up with ingenious ways to spoil your happy holiday.
“It is normal this time of year to see increases in certain types of scams, such as charity scams and package scams,” Craig Gima, AARP-Hawaii spokesman, said Thursday. “Scammers, for the most part, are very smart and have put a lot of time and thought into ways of getting people’s money.”
An AARP Fraud Watch Network survey shows 80% of U.S. consumers say they have experienced some type of fraud this year — many of which ramp up over the holiday shopping season. These holiday shopping scams have increased from last year’s report, and involve receiving fake notifications about shipments, to online ad scams, and more.
“The concerning findings from our annual survey are that fraud is on the rise, and that knowledge about how to stay safe from fraud is dropping,” said Kathy Stokes, AARP director of Fraud Prevention Programs. “Education plays an important role in combating fraud, but we can’t educate our way out of what is now a rampant issue.”
This year, significantly more consumers plan on shopping online compared to the last two years. Fraudsters often place fake ads online and across popular social media sites promising steep discounts on the hottest items, for example.
“I’ve seen friends who love to shop online fall for this,” Gima said. “They see a deal on something they’ve wanted, and it’s unbelievably cheap. They see a product they’ve been wanting, and they haven’t been able to get it at the price they want. And they don’t know the company; sometimes, they’re based in other countries.
“They click on it, they order it, and it never comes. Or the product they get was not what was advertised. Then you’re stuck.”
“Make sure it’s a verified seller and it’s a reputable business when you’re shopping online,” added Hawaii Police Department Sgt. Jason Grouns.
Legitimate retailers will never request your login information to provide customer support. Gima said there are fake customer service websites posing as legitimate companies that pay for ads on social media.
“They’re after your personal information, if you put that into the website. So beware of customer service websites. Be careful and make sure you get the correct one,” he said.
“Consumers should refrain from sharing personal details during a transaction unless absolutely certain about the recipient, and avoid patronizing businesses that demand payment using unusual payment methods,” added Mana Moriarty, executive director of the state Office of Consumer Protection.
“If they want gift cards, that’s a red flag. If they want you to pay in crypto, that’s another red flag. Once they get the money, it’s gone. You can’t get it back,” said Gima. “If you give with a credit card, there’s a fee that doesn’t go to the charity. But you can get the money back. With a credit card, if something goes wrong, you have an option to get it back.”
Use of peer-to-peer payment services has increased significantly for a second year in a row. A large majority of respondents shared they do business via P2P apps — such as sending money to businesses they have no previous relationship with. In the unfortunate event of fraud, these apps provide little protection to affected consumers.
Gima pointed out that a lot of people donate to charities during the holiday season, “and there are a lot of fake charities,” including some purporting to help worthy causes, such as victims of the Maui wildfires, or the wars in Ukraine and the Middle East.
“You should check out any charity you donate to,” he said. “There’s charitywatch.org. The Better Business Bureau has a website that looks at charities and their annual reports. They look at how much they spend on the actual charitable work and how much they spend on administrative costs and how much they pay themselves. And there’s charitynavigator.org, another website you can search for that.
“You don’t want to give your money to a charity that spends more money on itself than on the services they provide.”
There’s also a rise in so-called package scams, in which scammers pose as the postal service, UPS or other delivery services saying they can’t find your location to make a delivery.
“Sometimes you get an actual phone call, or email or text message,” Gima said. “They’ll ask for some personal information, maybe even your credit card information. Don’t click on the links. The bottom line with those things are, even if it seems legit, don’t click on the link. Don’t call them back on the numbers they give you. Look up the customer service number yourself. Call them back on the number that’s publicly available, not the one they give you.”
With actual deliveries, there’s also the danger of so-called “porch pirates” who look to steal packages delivered when residents aren’t home.
“They’re definitely out there, especially in the rural areas,” Grouns said. “You might consider buying a special lock box for the postal service or UPS to leave your packages in, so nobody steals it off your porch when you’re not there.
“Another option is to get one of those Ring doorbell cameras or security cameras at home. If they’re visible to crooks, then, that’s a deterrent in itself. That doesn’t mean that they’re not going to take your package, but they’re less likely to.”
Those who choose brick-and-mortar shopping also need to beware of thieves, usually of the low-tech variety.
“The big thing is to be aware of your surroundings, whether you’re at the mall or running errands,” Grouns said. “People are looking for that quick and easy grab. Make sure you lock your car doors. Make sure you don’t have your shopping bags or handbags in sight. Put them and packages in the trunk. Try to park in a lit area, and find your key before you get to the car, so you aren’t fumbling with it when you get there. Especially if it’s late, you’re looking for that last-minute deal, and you’re in the parking lot.
“I know people don’t want to shop at the busiest times, but sometimes, that’s the best. With crowds, you have more eyes around.”
Gima said even the smartest people can fall victim to scams, and shouldn’t be ashamed or afraid to report theft of any type to the police.
“Resist the temptation to blame the victim, even when the victim is you or someone in your family,” he said. “You’re not the bad guy. The crooks are the bad guys.”
Consumers who believe they’ve been a victim of a holiday shopping scam also can file a complaint with the Office of Consumer Protection at (808) 587-4272 or cca.hawaii.gov/ocp/consumer-complaint/.
Email John Burnett at jburnett@hawaiitribune-herald.com.