13 scams to watch for this holiday season

More people were being targeted by websites, social media and email in 2022, but in-person contact scams resulted in the highest amount of money lost, the report found.

The holidays are all about giving – and scammers are counting on it.

Many thieves use the spirit of the season for their own financial gain.

Here are some of the most popular holiday scams reported to the Canadian Anti-Fraud Centre.

CHARITY SCAMS

Scammers may solicit donations for a legitimate charity, association, group or religious cause.

Unsuspecting victims may be pressured to contribute to a cause through false, deceptive, misleading or fraudulent claims.

People are advised to be cautious before handing over money, ask questions if it sounds suspicious, and always request a charitable tax number. That number can be confirmed through the Canada Revenue Agency (CRA) or by phone at 1-800-267-2384.

SECRET SANTA

Friends and family may organize gift exchanges through social media. One scam involves sending one gift in order to receive multiple items in return.

Not only is this considered an illegal pyramid scheme in Canada, but scammers can also use these gift swaps to collect your personal information, the Canadian Anti-Fraud Centre said.

GIFT CARDS

Gift cards may seem like a safe option if you’re not sure what to get someone for the holidays.

The Canadian Anti-Fraud Centre said they should be treated the same as cash. Once you hand them over, there’s no way to get them back.

Never give gift cards in exchange for payment.

The agency said no legitimate business or organization will request them.

A Guelph, Ont. woman lost $40,000 to a gift card scam in January. Police said she was contacted by someone claiming to be from her bank. The caller said the woman’s account was compromised and they needed her help to catch those responsible. The woman then purchased prepaid Visa cards and gave the serial numbers to the scammer.

ONLINE SHOPPING

Scammers may post fake ads for items that don’t exist, even though they may appear legitimate. These include event tickets, rentals, vehicles, puppies or home goods.

A Guelph woman recently lost $600 while trying to buy Taylor Swift tickets online. She purchased them off Facebook and believed the tickets would be transferred through her Ticketmaster account. The owner of the Facebook account told police her social media page had been hacked and she was trying to get it deactivated.

In Cambridge, two people were charged in what police called a “large-scale fraud investigation” that happened between October 2022 and June 2023. Police said the pair posted phones, washing machines and lawn mowers for sale online. They would accept payment but never deliver the items to buyers. Both were facing more than 90 criminal charges.

The general rule is that if seems too good to be true – it usually is.

Research before you buy anything online, exchange goods in person and at a safe place, and use your credit card instead of cash for payment.

BUYER BEWARE

If you’re selling items online, beware of any offers that are too good to pass up.

Some “customers” may offer to pay more than the asking price.

Always confirm you’ve received legitimate payment before handing over or sending your item.

CONTERFEIT GOODS

Scammers can easily create fake websites that look legitimate.

They may offer products with deep discounts and often use big, flashy ads to pull in unsuspecting shoppers.

These counterfeit products are often inferior to the original and could pose a health risk.

Shoppers are encouraged to thoroughly research an item before purchasing from an unfamiliar website and look for warnings posted online about the seller or website.

CELLPHONE SELLERS

Many people shop for or have cellphones on their Christmas wish list.

Be wary of any incoming calls claiming to be from your service provider and offering too-good-to-be-true deals.

Suggest calling them back but don’t use any phone number they give you. Instead, look up the company’s phone number on your own or check for it on your monthly statement.

IDENTITY FRAUD AND THEFT

The holidays are a busy time for stores and that makes it easier for scammers to get your personal information.

Shoppers are encouraged to be more careful with their wallet or purse and protect their PIN.

They’re also warned not to share passwords or too many personal details that can be used to create a fake account.

ROMANCE SCAM

Scammers will create attractive – but fake – profiles to lure in prospective victims.

They may “love bomb” their target and play on their emotions to get them to send money for what seems like legitimate and convincing reasons.

They may also use the holidays as an excuse for needing money.

A Waterloo man was arrested by Waterloo Regional Police in November for allegedly defrauding dozens of women out of more than $2 million over a 15-year period. The 49-year-old, who police have not publicly named, has been charged with fraud and possession of stolen property. Police believe there may potentially be more victims who haven’t come forward yet.

The Canadian Anti-Fraud Centre says you should never send money to someone you’ve never met.

PHISHING EMAILS OR TEXTS

You may receive emails or texts from what might appear to be a recognizable organization like a financial institution, telecommunications company, service provider or shipping company.

The messages could ask you to confirm your personal information or contain a malicious link.

Police in Guelph said they were seeing an increase in phishing scams this summer. People posting items for sale on Facebook Marketplace or Kijiji would get a message from someone offering to pay a deposit via e-transfer. They would then send a link through email or text that would take the seller to another page where they would be asked to enter their financial information to confirm the transfer. The scammers would then use their credentials to log into the seller’s bank account, change the password and steal their money.

Don’t click or download any links from someone you don’t know.

EMERGENCY SCAMS

This type of scam has become more common, often targeting older adults.

You may receive a phone call from someone who claims to be a family member who requires funds for an emergency.

In February, a grandparent from Elora lost $14,000. Police said they received a call from someone who claimed to be their grandson, who said they were in jail and needed money for bail. An unknown person later went to the victim’s home and picked the money up in person.

A Kitchener senior was also the target of a grandparent scam in January. He shared what made him suspicious of the caller in an interview with CTV News.

The victim, in some of these situations, will be told to keep the transaction a secret from other family members or bank employees.

People are urged to verify the caller’s identity before taking any action. This can be done through asking questions only the real person would know, or hang up and call the person at the number you know belongs to them.

PRIZE NOTIFICATIONS

You’re a winner! Or are you?

Scammers may call or send a letter stating you’re the winner of prize, whether that’s cash or another desirable item.

In order to claim your winnings, however, they’ll want to “confirm” your personal information and you’ll be required to pay extra fees.

People are reminded that you can’t win a contest or raffle you didn’t enter in the first place.

According to the Canadian Anti-Fraud Centre, in legitimate contests or draws, any associated fees are removed from the total prize so the winner is not required to pay anything in advance.

Earlier this year, a person in St. Marys lost $73,000 to a prize scheme. Police said they were contacted in January by someone saying they were randomly selected as a winner for Publisher’s Clearing House. Their prize was $5 million and a new Mercedes. Police said they sent 25 e-transfers to various individuals in Canada and the U.S.

CRYPTO INVESTMENTS

Before investing in any crypto scheme do additional, and independent, research on the investment. That includes the team offering the investment and its feasibility.

A Puslinch resident lost $300,000 to a crypto scheme in February. The scammer claimed to need money for various reasons and the victim sent it via Bitcoin. The victim also invested in a “business venture” that they believed would double their investment.

Investors are also encouraged to look up the company using the National Registration Tool.

WHAT TO DO IF YOU’VE FALLEN FOR A SCAM

If you’ve been a victim of a scam, the first thing you should do is contact your bank or other financial institution to stop payment if possible.

The Canadian Anti-Fraud Centre said the next step is to alert credit bureaus, Equifax Canada and TransUnion Canada if you notice:

• Suspicious activity on your financial statements
• Unauthorized activity on your credit report
• Letters approving or declining credit applications you did not authorize
• Re-routed mail
• Bills from service providers you do not use
• Your information was compromised as part of a database breach

Victims are also encouraged to call their local police service or Ontario Provincial Police at 1-888-310-1122.

Reports can be made to the Canadian Anti-Fraud Centre online or by phone at 1-888-495-8501.