by Kerry L. Erisman*
“Scams cost United States consumers over one Billion dollars a year.”
Federal Bureau of Investigation
The hustle and bustle of the holiday season is right around the corner and undoubtedly shopping will consume much of our time. Thanks to the Internet, holiday shopping is easier than ever; over sixty percent of United States consumers now do at least some holiday shopping via the Internet. Along with the joys of the season, however, the holidays are unfortunately also a time when consumer scams rise. While you need to be careful of consumer scams throughout the year, such scams significantly rise over the holidays. How do you protect yourself and what do you need to do if you fall victim to one of the many scams?
This blog will address the most popular holiday scams, unsolicited emails and fake shopping websites.
When addressing scams, here is a good starting premise — if an email, website or deal sounds too good to be true, run the other direction. Trust your instincts! We are all looking for a good deal, but don’t be so eager for one that you let your guard down and fall victim.
Unsolicited Emails
If you receive an unsolicited email from an unknown email address, delete it without opening it. If you do open it, never open attachments. Attachments may contain viruses that affect your computer and steal personal information. Email scams at times will attempt to appear to be from legitimate businesses, such as banks.
For example, you receive an email from your “bank” that informs you that your account has been hacked and thousands of dollars have been taken from your account for holiday purchases. The email will sound urgent and demand personal information, such as your bank login information, account numbers and other sensitive personal data. Do not reply, but rather call your bank on the telephone using a number that you know is from your bank and inform them of the email you received. Never use a telephone number associated with the email. The bank personnel will verify that the email did not originate with them and they will give you an official bank fraud department email address and ask you to forward the email to that department, which will then investigate.
Unsolicited emails often involve holiday greeting cards, special holiday loans and credit cards with special holiday rates, and holiday travel deals.
- Holiday Greeting Cards -Many of us have received email holiday greeting cards from purported friends or family. Do not open them unless you completely trust the source. Internet scammers send tens of thousands of holiday greeting cards each November and December, and when the card is opened, it infects your computer and attempts to steal personal and sensitive data.
- Loans and Unsolicited Credit Cards with Unbelievable Holiday Rates – Scammers also send out hundreds of thousands of special holiday loan applications or credit card applications under the guise of unbelievable offers. The offer may look tempting because it will give you extra money to spend during the holidays, but they are designed to steal your personal information. If you need a loan or a new credit card, perform your own research and initiate your own application. Never respond to an unsolicited offer.
- Travel – Another popular holiday scam is incredible travel deals. If you receive unsolicited holiday travel deals that offer amazingly low prices, do not respond. These are designed to steal personal and financial information from you. There are many good travel deals offered during the holidays, but only use reputable travel websites that you trust.
Fake Holiday Shopping Websites
Fake holiday shopping websites appear every November and December. They disappear right after the holidays in order to avoid detection. By the time you figure out the website was fraudulent, it is gone. How can you spot a fake website? Follow these simple tips:
- If the prices are too low, that is a telltale sign that the website may be fake. Again, if it is too good to be true, trust your instincts.
- Examine the website and look carefully at the design. If the design looks suspicious, avoid the website. If the website contains poor English, that is another giveaway. Many fraudulent websites originate in other countries, which is why there will be design flaws and poor English. One fake clothing store website, when referring to clothing sizes, tells its customers to “follow the measurements bellow.” Obviously, the correct word is “below,” and it is a sign of a fake website.
- Authenticate the website by using a popular search engine website and typing in the company’s name followed by the word, “scam.” For example, type in “Uncle Henry’s Famous Clothes scam.” If the website is suspect, your search will reveal many negative comments.
- Never use a website that doesn’t permit payment via credit or debit cards. Many fake websites will ask for payment by money order, cash, or wire transfers. If a website doesn’t accept payment by credit cards, go to another site.
- Finally, a clear warning sign is a website that does not provide clear contact information. If the contact information is suspect or nonexistent, avoid the website. A reputable website will provide clear contact information (name, telephone number and email address) that is easily verifiable by typing the information in a search engine website.
If you fall victim to a consumer scam, there are several actions you should take. First, if you paid by credit card, immediately contact the credit card company and dispute the charge pursuant to the Fair Billing Credit Act. The credit card company will investigate the disputed charge and you are not required to pay for the purchase while the dispute is investigated. Next, contact the closest legal assistance office to schedule an appointment. Use the Armed Forces Legal Assistance website that I provided in here to locate your nearest legal assistance office.
After scheduling an appointment, contact the U.S. Federal Trade Commission and file a complaint. In addition, contact the consumer affairs branch of your state consumer protection office and report the incident. Finally, report the circumstances to the local Better Business Bureau. The quicker you report and address the situation, the better likelihood that you will successfully resolve it.
Be on the lookout for future blogs that will continue to discuss specific legal issues often encountered by servicemembers and military spouses. As always, this blog series will help to protect your family and you!
- Kerry L. Erisman is a military spouse, Dad of two awesome teenage boys, Army retiree after 28 years of active duty service, attorney, and Associate Professor with American Military University. He writes and teaches on important military spouse issues including leadership, critical thinking, and education. This blog is the second in a monthly series designed to inform military spouses of timely legal issues that may affect them and where to turn for assistance.