Americans lost millions in scams last year. Here are tips on avoiding a holiday ripoff

More than 46,000 scams were reported on the Better Business Bureau Scam Tracker last year — a 24.9% increase over the year before.

The median reported loss was $155 — but collectively Americans lost millions.

According to the Federal Bureau of Investigation, the two most prevalent scams are non-delivery scams, where buyers never receive their items, or non-payment crimes, when goods are shipped but the seller is never paid.

Non-payment or non-delivery scams cost people more than $265 million across the U.S. Credit card fraud accounted for another $129 million in losses, according to the Internet Crime Complaint Center’s 2020 report.

BBB Scam Tracker receives reports of people paying for items that they never receive, getting charged monthly for a free trial they never signed up for, or receiving an item that is counterfeit or much different from the one advertised.

According to the report, 38.3% of all scam reports in 2020 were online purchases, putting those ages 18 to 54 at the most risk, with those ages 55 and up trailing behind.

And with Christmas right around the corner, the FBI encourages shoppers to beware: know who you’re buying or selling to — and be careful how you pay and monitor the shipping process.

Remember: if it seems too good to be true, it probably is.

Here is what you need to know about scams often used during the holiday season and how to avoid them, according to the BBB:

Free gift card scams

Gift card fraud may entail a seller asking you to pay with a prepaid card or a link to a free one. If you receive an unsolicited email with gift card offers, do not open it. Instead, mark it as spam or junk. If you do open the email, do not click any links.

Social media scams

Be cautious of social media ads about discounted items, event promotions, job opportunities and donation requests because according to the BBB, many scams are facilitated through emails and social media platforms.

As you scroll through your social media feed, you often times see items for sale from small businesses. Sometimes the business even claims to support a charity or offer a free trial. Do you research and before ordering from a company.

Temporary job scams

Retailers typically hire seasonal workers to help meet the demands of holiday shoppers. However, job seekers need to be careful of employment scams. BBB reports some solicitations aim at stealing money and personal information during the job application process.

Again, do your research. You can read company reviews on the BBB website.

Fake charity scams

Typically 40% of all charitable donations are received during the last few weeks of the year. But now that many fundraising events have transitioned online to curb the spread of COVID-19, donors need to look out for fraudulent charities and scammers pretending to be individuals in need.

Be sure to research and review the charity you’re interested in donating to before giving on money.

Fake shipping notifications

Scammers use the surge of online purchases to send emails with links that may allow unwanted access to your private information or download malware onto your device. They may also trick people into paying new shipping fees.

Avoid clicking on these emails. You can also reroute them to your spam folder.

Puppy scams

Many families may be considering adding a furry friend to their household. But before you do, request to see the pet in person before making a purchase.

Auction fraud

The FBI warns shoppers to be aware of auction fraud, where a product is misrepresented on an auction site.

If you’ve been scammed

• Call your credit card company or bank and dispute any suspicious charges.

• Contact local law enforcement.

• Report the scam to the FBI’s Internet Crime Complaint Center.

For more tips on how to avoid holiday scams, visit the official BBB website.

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