As we approach the holiday season, Australians are gearing up for festive shopping sprees. Unfortunately, while many are looking forward to securing great deals during events like Black Friday, scammers are just as eager to cash in on unsuspecting shoppers. According to the ACCC, Australia saw an all-time high in scam-related losses in 2023, amounting to a staggering $2.7 billion. A significant chunk of these losses came from online shopping scams, where scammers duped victims out of $14.9 million.
At BOA & Co. Chartered Accountants, we are committed to ensuring our clients are well-protected against financial threats, especially during the busy Christmas period. Scammers tend to get more aggressive and creative during the holiday season, which is why we’ve compiled this comprehensive guide to help you avoid common holiday scams and protect your finances.
Six Holiday Scams To Watch Out For
1. Social Media Shopping Scams
Social media platforms like Facebook, Instagram, and TikTok are filled with advertisements during the holiday season, offering seemingly irresistible discounts. However, a growing number of these ads lead to fake websites where consumers unknowingly provide their financial information to scammers. In 2023, the ACCC reported that losses from social media scams increased by 16.5%, with over $93.5 million lost.
How to Avoid It: Before clicking on a social media ad, make sure to verify the legitimacy of the website. Instead of making purchases through a social media link, search for the company’s official website directly via Google. Also, look for trusted online retailers like Amazon, Kmart, or Myer where in-store pickup is available. If you’re unsure about an online store, check for reviews and complaints through sites like Scamwatch.
How BOA & Co. Can Help: If you’ve been tricked into providing sensitive information to a fraudulent site, our team can guide you through the necessary steps to recover your financial details and secure your bank accounts. We also offer consultations on protecting your personal data and recognizing phishing attempts.
2. Parcel Delivery Scams
With the increased volume of online shopping, parcel delivery scams have become more prevalent. Scammers may send fake emails or SMS messages claiming that your package is delayed or needs redirection, asking for your personal details or a payment. A Forbes Advisor study in the US found that 38% of respondents had been victims of parcel theft.
How to Avoid It: Always track your parcels using the official website of the courier company, and don’t click on suspicious links from unknown senders. Consider having packages delivered to more secure locations like a post office, your workplace, or a friend’s house where someone can receive them.
How BOA & Co. Can Help: Our experts can assist you in identifying fraudulent text messages or emails, and offer advice on what steps to take if you’ve mistakenly shared your personal details with scammers.
3. Gift Card Scams
Gift cards are an increasingly popular way to give during the holiday season. However, scammers often exploit this by pretending to be family members or friends in need of urgent financial help. They may insist that you purchase gift cards and send them the details over email or SMS.
How to Avoid It: Never send money or gift card details to someone claiming they need them for an emergency. If a family member asks for a gift card, verify their identity by calling them directly. When buying gift cards, try to purchase them from reputable sources like grocery stores or financial institutions.
How BOA & Co. Can Help: We provide guidance on how to track and recover funds if you’ve fallen victim to gift card scams. Our team will also advise on preventive measures for future protection.
4. Charity Scams
The holiday season is a time for giving, which scammers are quick to exploit. Fake charities often use emotional appeals to solicit donations through phone calls, social media ads, and emails. They might even create fraudulent websites to impersonate well-known organizations.
How to Avoid It: Stick to well-established charities that you’ve previously donated to, and verify any new ones through the ACNC Charity Register. Avoid making donations over the phone, and be cautious of anyone asking for immediate payment via gift cards, wire transfers, or cryptocurrency.
How BOA & Co. Can Help: If you’ve donated to a fake charity, we can help you trace and report the transaction to authorities. Our team will also assist in securing your accounts and preventing further fraudulent activity.
5. Holiday Rental Scams
During the holiday season, many families look for vacation spots to celebrate together. Scammers will often post fake listings of holiday homes or rentals, asking for a deposit upfront before disappearing. Some Airbnb hosts may also cancel legitimate bookings and ask guests to rebook at higher rates.
How to Avoid It: Always book holiday rentals through trusted platforms like Expedia, Booking.com, or Airbnb, and keep all communication and transactions within the platform. If an offer sounds too good to be true, it probably is.
How BOA & Co. Can Help: Our experts can assist you in resolving disputes with fraudulent rental sites and advise on steps to secure refunds or file claims.
6. Fake Websites
Scammers often set up fake versions of popular online stores, such as luxury brands, offering steep discounts. The websites look almost identical to the real thing, with slight differences in the URL or design. These fraudulent sites are designed to steal your personal information and payment details.
How to Avoid It: Always double-check the URL of the website before making a purchase. Look for small discrepancies, such as an extra letter or a different domain extension (.net instead of .com). Use payment methods that offer fraud protection, such as credit cards, and avoid making purchases through wire transfers.
How BOA & Co. Can Help: If you’ve been tricked by a fake website, our team can guide you through the process of reporting the incident to authorities and help you recover lost funds.
How BOA & Co. Chartered Accountants Can Help You Stay Scam-Free
At BOA & Co. Chartered Accountants, we understand the increasing threat of financial fraud, especially during the holiday season. Our team of experts is dedicated to helping you safeguard your finances, whether you’ve fallen victim to a scam or want to strengthen your financial defenses. We offer personalized consultations, helping you detect, report, and recover from fraudulent activities. Don’t let scammers ruin your holiday season—partner with us for a secure and scam-free holiday.
Let BOA & Co. Chartered Accountants help you protect your finances this holiday season. Reach out to us today for personalized advice and financial guidance. Contact us at 1300 952 286 or service@boanco.com.au. For more information, visit our website at www.boanco.com.au.