Watch Out for Fraudsters This Holiday Season
The holidays are a time for celebration, generosity, and connection. Unfortunately, they're also prime time for scammers looking to take advantage of distracted shoppers and busy families.
Fraudsters become increasingly active as people shop online, donate to charities, and manage more financial activity than usual.
At Meramec Financial Planners, we believe that protecting your financial well-being is just as important as growing it.
Here's what to watch for this holiday season and how to protect yourself from becoming a victim.
How Scammers Take Advantage During the Holidays
Many scams sneak into your inbox or phone through emails, texts, or calls that appear legitimate. Fraudsters often impersonate trusted companies, such as major retailers or shipping services, to trick you into clicking harmful links or revealing sensitive information.
A common example is a "missed delivery" email that directs you to a fake tracking site asking for payment or login details.
Fake charity appeals also tend to spike during the holidays. Scammers exploit your generosity by creating emotional messages that claim to represent disaster relief or children's causes, when in reality, the funds go straight to them.
Another popular trick involves gift card scams, where you might be told to pay for something using a gift card or to share the numbers from one you purchased. Once they have that information, the money is gone instantly.
The Rise of Imposter Calls and Online Marketplaces
Imposter phone calls and texts are also rampant this time of year. Scammers often pose as banks, the IRS, or tech support, warning of "suspicious activity" and urging you to confirm your identity by sharing a code or password.
Even online marketplaces can be dangerous during the holidays. That great deal on a high-demand item might not exist, and once you pay, the seller disappears without a trace.
These scams prey on people's trust and the chaos of holiday shopping and year-end stress.
Red Flags That Signal a Potential Scam
There are usually a few telltale signs that something's off. Messages filled with spelling or grammatical errors or those using generic greetings like "Dear Customer" should be taken as warning signs.
If the message feels urgent or threatening,
pause before responding. Fraudsters thrive on creating panic to make you act quickly.
You should also be skeptical of anyone asking for payment through unusual methods like gift cards, cryptocurrency, or wire transfers. Legitimate organizations will never demand you share a full password, verification code, or banking details over the phone or through text. And if an offer sounds too good to be true, it probably is.
Smart Ways to Protect Yourself
The best defense against fraud is staying alert and proactive. Start by slowing down before you click or reply to any unexpected message.
If you receive an email or text about your account or a purchase, verify it through official channels such as a company's website or customer service number.
Use multi-factor authentication whenever possible to add an extra layer of security. When shopping online, it's also smart to pay with credit cards since they typically offer stronger fraud protection than debit cards.
Make a habit of reviewing your bank and credit card statements regularly so you can catch suspicious charges early.
Keep Your Family and Devices Secure
Educate your family members too, especially seniors who are often targeted by scammers. Talk about the importance of verifying calls, avoiding public Wi-Fi for online shopping, and keeping devices updated with security software.
When it comes to charitable giving, take a few minutes to confirm the legitimacy of a cause through trusted sources like Charity Navigator or the IRS database.
Lastly, if you've experienced fraud or think you might be at risk, consider adding a credit freeze or fraud alert to your accounts to prevent new ones from being opened in your name. A few simple habits can go a long way toward keeping your information safe.
Protecting Your Peace of Mind This Season
At Meramec Financial Planners, we understand that financial safety is part of your overall financial health. We are more than advisors; we're partners in helping you safeguard your accounts, identity, and peace of mind.
Our team stays informed about the latest forms of financial fraud and can help you identify potential vulnerabilities before they become problems. Because we operate on a fiduciary, fee-only model, our advice is always in your best interest.
We don't earn commissions or referral fees, so our recommendations are entirely focused on protecting and supporting you.
The holidays should be filled with joy, not worry. Take a few simple steps now to stay secure so you can focus on the people and moments that matter most.
Our recommendation: review your financial habits, stay alert for the warning signs above, and reach out if you have questions or concerns about your accounts.
