Between nonpayment and nondelivery scams, consumers reported losing nearly $800 million in 2024. If you want to avoid the same fate this holiday season, here are some key ways to protect yourself:
- Slow down: Give yourself ample time to do all of your holiday shopping. The best approach is to start early. This way, when you’re making purchases, you won’t get rushed. You will not overlook red flags. Watch out for shady sales tactics, like limited-time deals for discounts that are too good to be true.
- Vet your vendors: For vendors and other online sellers that are new to you, search for reviews. Read the comments on their social media posts. Before sharing your payment information, look for their contact information, the site’s return policy, and any related fees.
- Click carefully: Do not click on ads or links in emails. Instead, go directly to the vendor’s SSL-encrypted website. Look for the lock symbol in your browser. If you see an online ad for a big sale, check with the retailer to make sure it’s legitimate.
- Pay with credit: Never send payments by gift card, cryptocurrency, or other untraceable methods. Instead, opt for credit cards since they have more protections than debit cards. If you can’t afford to pay off the credit card purchase within a month, reduce your holiday spending. Adjust your budget accordingly. I strongly recommend this adjustment.
If you do end up falling for a scam, take action to reduce the fallout right away. For example, you might need to request a chargeback or dispute the charge through your credit card company. Then, keep an eye on your financial statements so you can catch any unauthorized charges.
Additionally, review your credit reports for information you don’t recognize, such as applications for new credit cards. You can pull your credit reports for free once a week from AnnualCreditReport.com, and pulling them does not hurt your credit scores at all.
