Gift Card Fraud, & ID Theft in the Holiday Season

There's always so much going on during the holidays. Everyone's rushing around getting last minute gifts, finalizing travel plans and making charitable donations. 'Tis the season for giving, but for some, it's also the season for taking.

These manic holiday weeks can leave many windows of opportunity for thieves to snatch up what isn't theirs. And what better time than when you're charging away like it's your last credit card, are miles away from home and your festive mood is in full swing? Which is why you should be cautious of identity theft and fraud more than ever.

Over the years, thieves have become very creative with their scams. Before you make that toast, watch out for these swindles that seem to pop up faster than champagne corks on New Year's Eve.

Ghost Merchants
You've been too busy to scour on foot for that brand new Nintendo system or iPhone package. But you recently found an amazing deal from a website you're not familiar with. It looks trustworthy enough so you go ahead and make the purchase with your credit card. You don't receive the package within the promised time, so you try to contact them but their number doesn't seem to work and the address is a P.O. Box number.

It's likely that you've been taken for a ride with a phony website. One of the first things that should have made you suspicious is the deal that seemed too good to be true. If hot ticket items are sold out at big name retailers yet a small website appears to have them in stock at a less than the market price, then it probably isn't legit.

A second clue is the fact that their contact address is a P.O. Box. Most reputable companies have actual addresses, not P.O. Box numbers. Thirdly, check to see what their payment options are. If they only accept checks or bank deposits, then it's probably not the best idea to go ahead with the transaction. Also watch out for what details they request when entering your credit card details. If they ask for things like social security numbers or other personal information, don't go any further.

If you’re unsure of the merchant, then do a little research before you decide to purchase. Call them on the phone number listed and ask questions like what their return policy is. Sometimes, a single phone call can give a clear picture as to the legitimacy of a business. When making a purchase, never use hard-to-trace means of payment such as a bank deposit or send a check, and instead use insured forms of payment such as a credit card that isn't tied to your bank account or PayPal.

Delivery Confirmation Emails
These scams are really effective. With so many people making online purchases at this time of year, it's easy to spam a database with emails that say things like "Shipping confirmation enclosed" or "Your package is on its way" in the subject line. Once opened, you'll be asked to "re-enter" bank information, a telephone number to notify you of the location of the package or other personal verification method. Once you provide these details, you've just opened yourself to identity fraud.

Did you check to see if the actual sender was from the company? Or was it just a random email from an unknown sender? Did the email look generic or did it have an official-looking company logo? Look over the email to make sure it matches the voice and tone of the company you've bought from, and if not, don't respond and go to the official company website to confirm your order status.

Promotion & Sweepstakes Emails
When the wallets are being dented and the credit card is being maxed out, a free offer is a refreshing change. You'll suddenly notice a barrage of emails that offer free holiday gift cards, shopping spree sweepstakes and surveys that promise to reward you at the end. Most of these emails will no doubt ask you to give forth personal information, which can then be used to harvest other information about you and ultimately, target your bank account.

The easiest way to filter out the bad from the good is to have anti-virus software installed into your computer. This helps a lot of spam from reaching you at all. Secondly, check who the sender is, misspellings within the email and suspicious-looking 800 numbers to call to redeem prizes. Thirdly, don't click on any links within such emails. If you're unsure, then type in the URL into a new browser.

E-Cards
Who doesn't get e-cards at this time of year? With snail mail too slow for so many people, we all opt to send at least a few e-cards to our friends and family. But just the same, we may receive some greetings that are just posing as if they're from people we know. Many of these scams involve clicking a link to view your card, which then takes you to a site in which you need to download software to open the card. This is a sure sign that the card isn't a real card, but a way to implant viruses and other spyware into your hard drive.

The most obvious way to avoid these nasty greetings is to make sure you have anti-virus software installed. Also, delete any card from an unknown sender without even opening it.

Charitable Donations
Just when you thought people couldn't sink so low, you come face to face with charity scams. They often crop up after a disaster and during the holidays, when people are vulnerable and emotionally touched. A representative will call or approach you on behalf of a known or unknown charity, asking for donations in all forms. Once the money is handed over, you'll be sure it won't end up in any charity.

One of the biggest flaws in these charity scammers is the lack of information they're able to provide. If suspicious, either let them know you're not interested or ask questions such as how the money will be spent or where you can go in person to make a donation. If they are unable to provide any of this information, you're probably dealing with a con artist. You should also never provide any credit card information via email or the phone. Another suspicious sign is if they ask you for an urgent donation, one that has to be made right then and there. No charity will ask for an on-the-spot donation.

Gift Cards
Though not the most sentimental of gifts, gift cards are certainly one of the most popular. But recently, thieves have gotten very creative and have resorted to stealing gift card numbers. How do they do it? Simply by trolling the gift card racks of any major retailer, writing down the code numbers on the backs of the cards, then calling the 800-number to learn which cards are activated. All that's left to do is spend the money on the card before you do!

If you must give gift cards, try to purchase them from online retailers or direct from the merchants that have them locked up behind the registers. Never purchase gift cards whose packaging looks like it's been tampered with and always make sure security codes aren't scratched off.