Money Matters
Money Matters
Protecting Your Holiday Season: Scam Prevention and Safe Shopping Tips
Uncover the secrets to a scam-free holiday season with insights from Carmen Million of the Better Business Bureau. As scammers grow more cunning, especially during the holidays, we're here to help you stay one step ahead. From sophisticated AI-driven tactics to classic scams like fake prize notifications and deceptive package alerts, Carmen and I break down how to identify and avoid these traps. You'll learn invaluable strategies to keep your finances secure, from verifying suspicious communications to recognizing red flags in emails and texts.
Gift cards and online shopping are holiday staples, but they come with risks if you're not careful. We share essential tips for ensuring your gift cards remain untouched and your online shopping experiences are safe. For those who prefer shopping locally, we discuss how this can be a more secure option while still requiring vigilance against misleading advertisements and phishing schemes. Additionally, we address the emotional impact of scams, reminding listeners to report incidents and seek support without shame.
In the spirit of giving, we explore how to make charitable donations wisely, so your generosity goes where it's needed most. Discover how to spot legitimate charities and protect yourself from fraudulent solicitations, with guidance from the Better Business Bureau Wise Giving Guide. We round off the episode with a blueprint of scam prevention tactics, from checking website security to inspecting gift cards, ensuring you and your loved ones enjoy a joyful and secure holiday season.
Have an idea for a show or a question for Kim? Send us a text message
Welcome to Money Matters, the podcast that focuses on how to use the money you have, make the money you need and save the money you want – brought to you by Neighbors Federal Credit Union.
The information, opinions, and recommendations presented in this Podcast are for general information only and any reliance on the information provided in this Podcast is done at your own risk. This Podcast should not be considered professional advice.
Welcome to Money Matters, the podcast that focuses on how to use the money you have, make the money you need and save the money you want Now here is your host, ms Kim Chapman.
Speaker 1:Welcome to another edition of Money Matters. We are in the midst of the holiday season, a time for celebration, shopping, gathering with family. But guess what? Crime does not take a break for the holidays. As a matter of fact, it kind of ramps up a little bit. And so we want to try and get you prepared for the holiday season and help you avoid, you know, ruining the holidays by being the victim of scam. So joining me today is our special guest, ms Carmen Million. She's been here before. She's always eager to come back and keep us on our toes. She's with the BBB Better Business Bureau. Welcome back, carmen.
Speaker 2:Thank you, Kim, for having me. I appreciate it.
Speaker 1:It's. You know, it's tragic that we have to have this conversation. It's the holidays and all we should be thinking about is eggnogs and, you know, sitting around the fireplace, but we have to do this, and so what are you seeing? What is happening right now in terms of crime or scams?
Speaker 2:Well, the first thing people need to understand is that everyone is on social media and that's a big thing that we're seeing now, and we used to tell people these scammers that are targeting you just look for misspellings, just look for certain things. But with AI that's gone away so they can correct all the things that you would notice that it's a particular scam, and so we're seeing that they're contacting people and they're telling them different things. It's basically the same scams. You've won something. Well, who doesn't need money around Christmas time? You win money. You have to just call this number or click on this link. Don't do it. We also have those that are telling people that they missed a package. I had a neighbor call me the other day and she said they said that they had delivered two packages to my house and that I had. I signed for them and I owed money and if I didn't pay the money, they were going to have a bench warrant for my arrest. They use fear as a factor to get you to fall for the scam.
Speaker 1:Well, I want to kind of pause and talk a little bit about the packages, because I tell you, with all the different scams, I have to say that that one is slightly, a little, you know ingenious, because everybody listening out here you're probably hooked on Amazon, hsn, qvc, and even if you're not hooked, this is the time of the year that you might typically visit those sites and order packages, and so it's safe to assume that probably, if you had a pool of a hundred people, that probably three quarters of those individuals have a package on the way coming from UPS or somewhere. And so the scammers know that. And I've received, I received those emails all the time. As a matter of fact, one morning I received one and I was expecting a package and there was.
Speaker 1:I knew that there was something wrong with the package. I don't remember what the details were, but there was something funny. So when I did get that email I knew better. But because there was a problem with it already maybe it had been delayed or there was something with shipping it would have been so easy for me to fall for that. So what are some key things that people should look for? I remember my email. It was maybe UPS, but at franksinatracom. What are some key things or red flags for people to look at so that they'll know that this is not a real link or you know how can they identify it?
Speaker 2:Well, first of all, if you're going to order something online, you need to make sure you keep records, records that you can get to quickly. If you receive an email, a text, a message saying that there's a problem or a question about your package delivery, go back to the information that you kept. Don't respond to the email or the text that you received because more than likely it's a phishing scam. You know most people are scammed because of opportunity and, of course, everybody's ordering.
Speaker 2:you know online shopping is the way to go now, especially since COVID, it's really become even more popular. But people need to be their first line of defense. They have to protect themselves by keeping the information handy, by going back to their receipts and seeing where they ordered it and checking directly with that company. Don't assume just because you get a call or text or email that it's legitimate. You have to question it because what they're eventually going to do is try to either get your personal financial information or they're going to ask you to pay a fee to get the package.
Speaker 1:So you mentioned AI artificial intelligence is making it even harder for consumers to detect. Are there any key things that we can still look out for to help us detect that this is not a real link or a real legitimate email or text?
Speaker 2:Yeah, well, you definitely need to look at the link Again. You know, my first thought is don't even respond to it, no matter what, even if it seems legitimate. Go back to your information that you know is accurate and contact them directly from that. But with AI, if you go through social media, sometimes it's hard to detect if it is legitimate or if it is a fake. You can look for blurry lines, you can look like I said some misspelling, some English, maybe not correct, but it's getting better and better and so, again, your best line of defense is to go back to your receipt, keep a copy of it, know where you ordered it, when you expect to get it and a contact information, and also you need to investigate who you're ordering from. A lot of these people are getting these too good to be good, too good to be true deals, and they're getting them from foreign countries. So no telling what you're going to receive, which is probably one of the worries. My biggest worry is how much personal information you gave them. That's the concern.
Speaker 1:So are there any pieces of information that should be red flags? I would imagine automatically if they want something like your social security number, but if you're buying something, you would need to put in your bank account information or your debit card information.
Speaker 2:I'm going to tell you right now if you're going to order online, your best line of defense is use a credit card. If you use a debit card, then you're essentially giving them a connection directly to your bank account. They withdraw once. If they're not a valid company, they can withdraw again, and then you're essentially giving them a connection directly to your bank account. They withdraw once. If they're not a valid company, they can withdraw again, and then you're going to have to go back to the bank and fight it, and it's not fair for the bank to eat it. So you know, of course, we always recommend that you try to use a credit card or a PayPal payment form, something that, if you don't receive it or it's misleading, or the product is defective or whatever the case may be, you at least have the opportunity to dispute it and try to get your money back.
Speaker 1:Or at least your cash isn't tied up at a financial institution versus a credit card.
Speaker 2:Absolutely, and I know it's hard. Some people don't have credit cards, but it's not a bad idea to have one just for online shopping. You have to protect yourself when ordering, and we're seeing so many people that are paying with debit cards, and even they say cash cards, which amazes me. It's like giving cash and then they never received the merchandise and then they find out the company's not a legitimate business and they want their money back. Well, we tell them you're never going to see that money. Use it as a lesson. It's expensive, it's painful, but you have to use it as a lesson. Protect yourself.
Speaker 1:Are there resources available on the BBB website? If I have a company and I'm not so certain about it, can I look on the website to see if in fact, they're listed there? What resources are available that can help me in my decision making?
Speaker 2:Well, you can go to BBBorg and you can search a company, no matter where they are in the United States, and that's a first step. Now, of course, if they're in a foreign country, you're pretty much on your own. There's nothing we can do. We can't check it out. You shop at your own risk, but you can check on those companies. And if you go to our website and you're not getting the information that you need, or it's not clear, or you can't find it, then pick up the phone and call us and we will research it for you and give you advice on how to proceed. We also have what we call a scam tracker and it's bbborg backslash scam tracker and if you've been a victim of a scam, you can log it on that site and it allows us to see the patterns, how often they're happening, what areas they're hitting, what particular scam is happening at this time, and it allows us to do alerts with the media to try to take a proactive step of preventing those scams happening to other people.
Speaker 1:So we were talking about online shopping and you know, like you said, it's what's happening. People are doing online shopping, but if you can at least get past the scam of ordering the correct merchandise, then there's the issue of porch pirates. Right, that has definitely been on the rise, you know. Each year, as more and more people order online, have you seen an uptick? What can consumers do to avoid being a victim of that?
Speaker 2:We are seeing an uptick on it, especially right now, and one of the things that we're noticing and we're hearing is that there are porch parts that are following delivery trucks and as soon as they leave, they're snatching those items and running with them.
Speaker 2:And of course you have to be a vigilant, you have to make sure your neighborhood has some kind of a watch program and if not, definitely you want a door video on your front door so it'll at least identify the person, so you can turn it over to the police department. We tell people, if you notice anybody suspicious or if your neighbors do, to call the police department, the sheriff's department, and let them know, so that they can at least keep an eye out. But videos now allow you to find out who these people are. But also, when you order something, most companies will allow you to sign up for a delivery receipt and it will tell you when it's been delivered or if it's been delivered, and they'll take pictures. But you know in fact I do that I just ordered something recently and I just got a notice that it was it's going to be delivered tomorrow morning, and so I know to be watching out for that. But those people, those porch pirates are getting smarter and savvier and faster.
Speaker 1:Yeah, I tell you, ai is making things difficult. Water and savvier and faster. Yeah, I tell you, ai is making things difficult. So you know, we talked about using credit cards, but of course, like you said, not everybody has credit cards. And then, when you think about the holidays, people love to do gift cards at holidays. So I'll just turn it over to you. Talk to us about the different scams that people do with gift cards and what, if anything, can a consumer do, whether they're buying a gift card online or if they're going into the actual retail store to buy a gift card.
Speaker 2:Well, let me just tell you I'm going to. I'm going to. This is my experience. I give a lot of gift cords for Christmas, especially to staff, as Christmas gifts. That way they can purchase whatever they want. It's a good idea, but you have to be cautious about where you purchase it. We know that there are legitimate businesses out there that sell gift cords.
Speaker 2:However, my first thought is when I go to purchase a gift cord, are those gift cards in a safe spot Because there are scammers that will go into a store, will scratch off the back, will get the number on the gift card. You purchase it. You don't realize it's been tampered with, because I found out, also from the FBI, that they have some kind of little deal that they can put a seal back on it where it looks like it hasn't been tampered with. And then you purchase a gift card. Let's say you put $500 on that gift card, you give it to somebody and they go to use it and the money's gone and these scammers have taken the number and that's all they need and they will periodically check to see if there's a balance and then they'll remove it.
Speaker 1:So you mentioned a safe spot. What would be a safe spot? Because I don't think I've ever seen gift cards, for example, behind the counter like they may keep cigarettes or liquor. They're always, you know, a little turn style in the store. So what would be deemed? If I'm looking for a safe spot, what would that look like?
Speaker 2:Is the spot where the credit cards, in an area where the person who's checking out has an eye on it, can they view it. You know, if it's in like an obscure spot where nobody's around it very often, then that would be something you know because you have to give them enough time to temper with it. But if you're at eye level with the person behind the checkout counter then you're more than likely not going to do it. I tend to get my gift cords from the same store every time because I know that that person is usually watching that turnstile with all the gift cords. You just have to be cautious and of course you have to make sure that you check to see if the balance is on there. I know that there are numbers and you want to make sure you do that.
Speaker 1:Is that before you purchase? Before you purchase it or like maybe right after you do it at the register.
Speaker 2:Well, when you go to pay for it, depending on what the store is, a lot of times they'll give you the receipt for the gift card and they'll give you a receipt to give to the person so that they will know how much is on that card and if has been tampered with the company that you purchased not the store, but the gift card company is not going to reimburse your money. That's lost, that's something you have to eat. You can turn it over to the authorities, but you have to figure out who stole it. So it's very hard. But once you purchase it and before you give it to the person, you can go in there, use those numbers and find out if the balance is on there. Or you can suggest I always, when I get these gift cards, I suggest that when I give them that they either use them quickly or call them to make sure the balance is on there, because you have to be cautious and that's unfortunate and a lot of scams.
Speaker 2:Now I've been doing this for a long time and there were years where they'd ask people. They'd tell people you've won a gift or you have to, for whatever reason. They needed money and you would either wire money or you'd send a check or you'd give them your bank account number and you know people are understanding those are scams. But what they're now doing and it's still popular is they're telling people that they have to buy an iTunes cord. Or you think about a senior citizen. They don't have a clue what an iTunes cord is. Essentially it's a cash cord. You give them the cord. I mean, you purchase a cord. They ask you for the number. You give them the number or take a picture of it. You send it to them.
Speaker 1:They remove the money, and then you realize that anything that was on that card is gone. You're never going to hear from these scammers again, so typically with gift cards.
Speaker 2:there's really no recourse. No, it's very hard because it's hard to figure out who actually the scammer is and, unfortunately, a lot of those we see out of the country.
Speaker 1:So that's really really, really, really tough. What else are you seeing? Anything that's really surprising this year that maybe you know consumers are not aware of.
Speaker 2:Well, I don't know that anything surprises me anymore. Well, one of the things I do want to say is, you know, of course, is the Better Business Bureau. We always recommend that people shop locally. That's important. You know you want to support your local businesses. However, when you're shopping with those local businesses, or online or wherever, you want to make sure that you understand what a store policy is.
Speaker 2:Return policy A store is responsible to publish their return policy, refund policy, but it's your responsibility to ask what it is. And so you know, because just because you don't like it doesn't mean they're going to take it back and give your money back. They may give you a credit. So you need to understand what those store policies are.
Speaker 2:A lot of these advertisements I see on social media because that's what everybody's doing on social media these popular items and they'll they notice you searching for those items and then, all of a sudden, you'll get these pop-ups and they're basically trying to fish to get you to click on their link and bring you to another site and, of course, they're going to ask you for money. They're going to promise you this product at a great price and they have overage of whatever the hot item is this year. Don't fall for those things. Investigate a company before you purchase it. Make sure you again use a credit card or PayPal, don't just use your debit card and investigate those companies and if you're not sure how to handle it, always call the Better Business Bureau. We can advise you.
Speaker 1:Now there's still, of course, a handful of people, I'm sure, out there that say hey, what about me? I still actually shop at the retail store. Do you see any form of I don't know if it would be scam, maybe lack of ethics in terms of an ad that might be bait and switch? It advertises something and you know there's only going to be two of them in the store. They just want to get you in the store. Are you seeing that still happening, or any change in that with even artificial intelligence?
Speaker 2:Well, I do find that. You know there is, if you want to call it bait and switch. There is some. It's not very common because in most cases, if a store advertises something, in a lot of cases it's nationwide. One store is advertising it. They don't tell you there's a limit, although well, they should tell you there's a limit, but they won't tell you what that limit is. And in most cases stores understand that if there's a real want for that product, they may be willing to issue you a rain check to get it in the future. So you might want to ask about that.
Speaker 2:We don't see as much of that as we used to, but you need to. Also when you see the ad, when you're spending your Thanksgiving afternoon looking at the ads, or whenever they come out. Now, look at the bottom of the ad. It should tell you that quantities are limited. First come, first serve, or there's only nine at this location, or whatever. The other thing is, you want to make sure you understand what that product is. It is actually what you're looking for. Sure you understand what that product is. It is actually what you're looking for or is it a lookalike product?
Speaker 1:And that's exactly what I wanted to talk to you about next, in terms of being able to determine the authenticity of a product. Sometimes I'll watch on court TV. Somebody thought they were buying a purebred dog and then later, after they took it to the vet, for some odd reason they found out that you know they really bought a mutt. Or you thought you were buying the latest greatest Air Jordans that are worth $500. And you found out you know that you got a knockoff brand that are worth 10. How can we protect ourselves against that?
Speaker 2:Well, you know again, the first thing is to make sure you're shopping with a legitimate, well-known, established business. That's your first step. Knockoffs are getting better and better. You can't really tell in a lot of cases when you're talking about purses or other items, shoes or whatever. So you just need to make sure that you're shopping at a reputable business, and if it is a really exclusive name brand, then you should get documentation with that. I know you know with Dooney and Burke, you get the little card and you get the bag and you get all those things. But you know, you really want to make sure you're shopping at a store. And then, of course, you have to consider the price. If it sounds too good to be true, it is.
Speaker 1:Always rule number one.
Speaker 2:Oh it is. I mean, you know you're never going to get something for nothing. It's never going to be too good to be true that you actually got a Dooney and Burke purse for 50 bucks. It isn't going to happen unless some individual selling it. And then you still don't know if it's real, but always want to purchase puppies for their kids for Christmas, which is the worst time to buy an animal because you know you have buyer's remorse and you can't give it back necessarily. But you also want to make sure if you're wanting to buy a purebred, which there's so many that need to be adopted I'm just going to shout out to that.
Speaker 2:But if you want to buy a purebred, make sure that you're dealing with a registered company who's properly registered and they have all the documentation and the supporting documents that prove that what they're saying is actually true, that you bring it to a vet to make sure it's healthy and whatever. Before you let too much time elapse, we have a lot of people and I'm one of those people I look at dogs all the time on social media and of course I get all these commercials or whatever saying that, oh, we're selling these purebred little chihuahuas or whatever and they look so cute, but when you start investigating the company, it's a scam. They're just trying to get you to send them money so that they can, you know, steal it from you. But they're not going to send you the dog and they'll say oh, we'll mail it to you, we'll have it shipped and like if you can't see the dog get the registration papers in person before you actually pay for it.
Speaker 1:Then don't you mentioned and I know this is a totally different podcast, but you mentioned that a lot of people like to buy dogs for the holidays and animals for the holidays. You know, whether it's Christmas or you always see it Easter, they'll want to buy bunnies, and I'll have to get somebody, a professional, in here to do a podcast on that, because of course, I bought my kids it's been years ago. I bought them puppies at Christmas. Everything went well. Well, I mean, you know, we went, bought to add a little shelter, a little store and all that good stuff.
Speaker 1:But what I didn't anticipate was that those two kids that finally did learn how to take care of the dog would eventually leave to go to college and guess who's taking care of a dog? And you said I can't give it back, and you're right, and so it's funny. So even with that, so even if you find a legitimate person or a legitimate place to get those animals, people really need to think through that process, because I can tell you I didn't see 10, 15 years down the line that, yes, the dog is still alive and kicking and both of my kids are off to college, and so I have a dog. It was their present and I can't seem to reach.
Speaker 1:I can't seem to re-gift it. So I have a dog. It was their present and I can't seem to reach, I can't seem to re-gift it. So I do want to switch gears just a little bit, still keeping with the holiday theme, because people are very charitable at this time of the year, very giving. If you're out physically shopping you'll see the little Salvation Army people with the little bell asking for donations or just standing there, and so you know people want to give. They feel a little bit more generous at this time of the year. We've just had two big hurricanes hit the Gulf Coast region, florida and I think what South Carolina, and so they're still struggling and so there's still lots of pleas for assistance in these areas. So for those individuals that do want to give they're still scams, right, or charities.
Speaker 2:Right and we tell people this all the time is, if you give and it makes you feel good but the money didn't go to the cause, you've defeated the purpose of giving and the people are still out there. We want you to give with your heart, but we also want you to give with your head, and there are just some really easy things we like to recommend. One of the first things I tell people is you understand that you can't give to everybody. That's a reality and, depending on what your life has been like, may may push you towards certain organizations. For instance, my dad died of cancer, my mom died of a heart attack. Those may be areas that I am passionate about, but you have to choose a couple of organizations that you are really passionate about and investigate those organizations. You can go to check an organization out, no matter where they're located at giveorg, and that's the Better Business Bureau Wise Giving Guide. We will tell you if they meet. We have 20 standards. If they meet those standards. If they do not, why they do not? It's simply to help you make an informed decision. We're going to provide you with information and whatever it says, it's up to you, but you have to monitor your giving. If it doesn't go to the calls, then those people are still out there and they really need it, and so you have to monitor your giving.
Speaker 2:If it doesn't go to the cause, then those people are still out there and they really need it. And so you have to really understand what the cause is, where the money's going. Is there a professional promoter involved? How much money they're receiving, how much actually goes to the cause. I hear this time of year you know you'll get those police and firefighters or those other organizations. There's nothing wrong with questioning where the money's going. Tell me, is it staying local? Is it going national? If it's staying local, where is it actually going? And so that you can check with the local police or firefighters or whatever and to find out where that you know, if they are aware and if they're actually receiving that money. Monitor your giving. It's your responsibility. And if they're actually receiving that money, monitor your giving. It's your responsibility.
Speaker 1:Do you still find that those legitimate organizations are making phone calls? So if I receive a call asking for a donation, should I immediately assume that this is a scam and hang up?
Speaker 2:No, I mean again. If you're getting a call and somebody is asking for a donation, what you really should do is say give me your name, your address, your phone number, your organization name, whatever I'm going to check on it and if I'm interested in giving, I will contact you back. Never, ever, allow somebody to guilt you into making a donation, make you feel bad or say that it's needed now. Donations are needed all the time year round, but there's nothing wrong with asking questions, doing your homework, investigating the organization to make sure your money is actually going to the cause.
Speaker 1:You know you've given out a lot of good information and as many tips as we can give. You know, of course, life is what it is. You can't prevent everything from happening. So if that person finds that, oh my God, I've become a victim, I know sometimes the first reaction is horror. It may be fear because you've lost money. It may even be embarrassment because, oh my God, how did I let this happen? What is your advice? What should somebody do once they realize they've been scammed? And then how can BBB help?
Speaker 2:Well, the first thing I'm going to say I say this all the time, I'm going to say it again is it doesn't matter how smart you are, it doesn't matter what your background is, it doesn't matter what your education is. If the timing is right, anybody can be a potential victim. Don't be embarrassed. Unless you do it twice, then that's a different story. So if you feel like you've been a victim or you're not even sure, always call the Better Business Bureau. We can guide you. Depending on what the scam is or what the situation is, we will know how to direct you. You can go again, like I said, to our website at bbborg backslash scam tracker. You can log it in there.
Speaker 2:If it's an internet scam, you can go to the FBI. I think in the Federal Trade Commission they have an ic3.gov. You can report it there. We have all of that information. We can give it to you. We can also advise you. We have a lot of people that call us, that have family members that have been victimized, but they're too embarrassed to talk about it. I tell them it's okay, we're not going to go out and tell anybody, but we want to make sure we educate you so that you don't make that same mistake again and hopefully help them get their money, which, depending on what the scam is, they may never get it. But always call the Better Business Bureau when you're in doubt. If we don't have the information or can't assist you, we will have the proper agency to direct you to.
Speaker 1:And I think it's comforting that you've said it over and over again that you can call, because so many of the scams are because it was you couldn't talk to a person. You did something online, there was nobody that could give you direction, answer questions. So the fact that they can not only use the BBB as a resource, but they could actually get a human on the phone, especially when they're dealing with something that may be a little bit terrorizing, embarrassing, whatever the situation is, that's really really a good resource. Well, carmen, I'm glad that you're always willing to come by, help us stay away from these scammers, because they're out there, I tell you, and with AI it's just harder and harder to you know, to detect what's real, what's a scam. So you know you're always going to have a seat at our table to come back and keep us informed. Happy holidays to you and hopefully this information has helped a lot of our listeners.
Speaker 2:Thank you, Kim.
Speaker 1:Now it's time for our blueprint building blocks. Here are a couple of tips to help you avoid becoming a victim of scam. Verify before you buy. Check the website legitimacy by looking for HTTPS. The URL can help you avoid clicking on a link that's not legitimate. You heard us talk about those gift cards. Inspect your gift cards very carefully when purchasing them in store. Check for signs of tampering. Look for anything that may be exposed, like the PIN numbers, to make sure that you're getting a unused, untampered with gift cards. Be cautious with social media. Research those sellers and read reviews before purchasing from social media Ads fake ads are common during the holidays. And finally, report scams immediately. If you encounter a scam, report it to the BBB. This helps protect others from falling victim too.
