14 common holiday scams to watch out for in Ontario

As shopping and spending increases during the holidays so do scams.

The Canadian Anti-Fraud Centre just released some of the most popular holiday scams so that you can recognize, reject, report and be merry, the centre says.

“The tree is cut, the lights are strung, the cocoa is hot and the stockings are hung. Don’t let a mean one spoil your festive fun!” the centre said in a post on X.

Here are 14 of the most common scams during the holiday season:

Online shopping

Fraudsters prey on people desperate to find that perfect gift. People pose as genuine sellers and post fake ads for items that do not exist. The listing price for almost any item (e.g. event ticket, rental, vehicle, puppy) is usually too good to be true. Research before you buy. Whenever possible, exchange goods in person or use your credit card for payment.

Selling goods and services online

People selling items online can also be targets for scammers. Be suspicious of customers offering to pay more than the asking price, the Anti-Fraud Centre warns. When selling goods and services online, always confirm that you have received a legitimate payment before you send the product. Fraudsters will also target anyone selling a vehicle online; make sure to use reputable websites if a vehicle history report is required.

Counterfeit merchandise

Counterfeiters can easily create websites that look like legitimate manufacturers and offer products at a huge discount. Look out for huge and flashy discount ads that direct you to websites that look like legitimate manufacturers. If you do receive any inferior/counterfeit products, they could pose significant health risks.

Shipping Frauds

Fraudsters will impersonate legitimate shipping companies and send you unsolicited text message or email asking for your personal and payment information because your package can’t be delivered or it’s being held for payment. They may even ask that you send payment to their fabricated shipping company.

Cellphone and internet promotions

If you are looking to purchase a new cellphone this holiday season, don’t fall for an incoming call claiming to be from your service provider. Fraudsters will claim to be a well-known service provider offering to gift you with a new cellphone and a discounted plan. They will ask for your personal information for the “credit check” and then order a new phone in your name, but you’ll never actually get the phone. Always find the official phone number for your service provider and make the call yourself.

Secret Santa

You may have noticed multiple gift exchange posts on your social media feeds. This may seem like a fun activity where you only have to send one gift and receive multiple in return. Unfortunately, this exchange collects some of your personal information and also hides a pyramid scheme where only those on the top profit. Pyramid schemes are illegal in Canada.

Gift cards

Gift cards are a popular and convenient way to give a gift. When buying gift cards in-store, make sure they haven’t been tampered with by comparing others in stock and checking for a secondary fraudulent barcode that could have been added to the back of the gift card. They should also be considered like cash; once they are exchanged, it is unlikely that you are getting your money back. Gift cards are not meant for payments and no legitimate business or organization will request these; especially with a time pressure.

Charity scams

During the season of giving, make sure your donations are going to the right places. Charity/donation scams involve any false, deceptive, misleading or fraudulent solicitation for a donation to a charity, association, federation or religious cause. Refuse high-pressure requests for donations, ask for written information about the charity and do your own research. Ask for the charitable tax number and confirm the charity’s registration with the Canada Revenue Agency (CRA) or by phone at 1-800-267-2384.

Crypto investment scams

Fraudsters use social media and fraudulent websites to lure Canadians into crypto investments. Before investing, ask for information on the investment. Research the team behind the offering and analyze the feasibility of the project. Verify if the company is registered by using the National Registration Tool.

Emergency

During the holidays, it is not unusual for loved ones to call. Scammers prey on this and pretend to be a loved one reaching out to you because they need money now and you’re the only one they trust to keep it a secret. Resist the urge to act immediately and make sure it’s actually them first by calling them from your contact list.

Romance scams

People may feel vulnerable during the holidays and get lured into an online romance. In these scams, an attractive fake identity sends loving messages and sweet promises. The fraudsters play on your emotions to get you to send them money for various, convincing reasons. They will say anything in order to gain your trust and, consequently, access to your wallet. Never send money to someone you have never met.

Phishing emails and texts

You may receive messages claiming to be from a recognizable source (e.g. financial institution, telecommunications company, service provider, shipping company) asking you to submit or confirm your information. They may even include a malicious link.

Prize notifications

You may receive a letter or a call saying that you’ve won a trip, cash or a car, for example. You will be asked to confirm your personal information and then cover a few fees before your winnings can be delivered. Remember: If you didn’t enter a contest or raffle, you can’t win. You also can’t enter another country’s lottery without purchasing a ticket from within that country. In Canada, if there are fees associated to a prize, they are removed from the total winnings; you would never be required to pay fees in advance.

Recovery offers

In this scam, a fraudster will pose as a law enforcement officer or recovery specialist and claim that they can recover financial losses from a previous fraud. They will make you jump through hoops while collecting your banking information.

Anyone who suspects that they have been a victim of fraud or a cybercrime should report it to their local police and to the Canadian Anti-Fraud Centre online or at 1-888-495-8501.

The tree is cut, the lights are strung, the cocoa is hot and the stockings are hung. Don’t let a mean one spoil your festive fun! The CAFC highlights the most popular holiday frauds so that you can recognize, reject, report and be merry. https://t.co/ZfY6Fo6arU #BeScamSmart pic.twitter.com/KnudVjDn6y

— Canadian Anti-Fraud Centre (@canantifraud) December 2, 2024

Lead photo:  justynafaliszek