JR Fujita
The holiday season is a crucial time to stay vigilant against the increase in fraud and scam attempts. Scams become particularly rampant during the holidays, which can be overwhelming.
Gift cards are a favorite target for fraudsters. While they are convenient, a survey by the AARP Fraud Watch Network revealed that 1 in 4 consumers has either given or received a gift card that had no value or partial value. Remember, gift cards should never be used as payment for bills. When purchasing a gift card, consider using a credit card, which typically offers $0 fraud liability and better protection than debit cards or cash. Always check that the protective stickers or scratch-off coverings on gift cards are intact, and consider selecting cards from the back of the display.
For those receiving gift cards, it’s wise to use them promptly or load the balance onto a digital wallet or online account with the retailer. This helps prevent fraud, especially if the store were to go out of business. If you’re buying cash credit/debit gift cards that can be used anywhere, pay attention to expiration dates, inactivity fees and terms and conditions.
Consumers must stay extra vigilant during the holiday season when making purchases using a gift card or credit/debit card. (Photo: AARP)
When shopping online, make purchases directly from reputable companies rather than responding to ads, emails, phone calls or texts that could be scams. Avoid using public Wi-Fi for online transactions, as card information can be stolen from unsecured connections. If buying through platforms like Facebook Marketplace, always use the platform’s payment option to protect yourself. Again, scammers often provide links that could compromise your security, so never click on a link that is sent to you.
Using a credit card for purchases offers greater fraud protection compared to debit cards. If possible, register your gift card, and check whether you can add a PIN for added security against unauthorized use.
As the year draws to a close, be prepared for an increase in unwanted phone calls, many of which will be robocalls. To protect yourself, let unknown callers go to voicemail, and block persistent unwanted calls. These calls often claim to offer credit card assistance, preapproved loans, home security, medical supplies, vacations or even impersonate government officials regarding taxes or unpaid bills. The Internal Revenue Service will always contact you by mail — never by phone.
If you’re considering monetary gifts to charities this season, always donate directly to the organization rather than over the phone. The Better Business Bureau and the IRS can help verify legitimate charities. The BBB also provides a scam tracker tool, and the IRS can confirm a charity’s eligibility for tax-deductible donations. Be cautious, as fake charities often mimic legitimate ones, and veterans and military families are frequently targeted by these scams.
For the latest updates and information from the AARP Fraud Watch Network, visit aarp.org/money/scams-fraud or call their helpline at (877) 908-3360 if you suspect a scam. This toll-free service is available Monday-Friday from 8 a.m.-8 p.m. ET. Stay alert, and protect yourself this holiday season!
JR Fujita is a community outreach and engagement manager for AARP and is based in Sacramento, Calif.
