Australians warned to be vigilant as scammers gear up for Christmas spending

Christmas should be a time of family, friends and food, but while our wallets can take a beating from the festive season, it’s not just overspending we need to look out for.

According to Roy Morgan Australians are expected to spend $11.8 billion on presents in 2024, up $1.6 billion on last year’s figures and retail outlets are not the only ones looking forward to a Christmas windfall.

It is also a time when scammers ramp up their activities and hope to catch Australians off guard over the silly season.

HSBC Australia Head of Fraud Management, Matt Hannan said we need to be especially vigilant around this time of year as the surge in spending and general good will that marks the silly season makes us more vulnerable to being cheated out of our hard earned dollars.

“Scammers are criminals who use a wide range of techniques and scenarios to steal money from you. The distractions of the festive season can see people let their guard down, which unfortunately can have an immediate and longer-term impact on your finances,” he said.

“Scammers prey on the high volume of transactions, the festive spirit, and even the charitable giving that characterises the season. That’s why we are sharing some of the most common scams affecting Australians and a few that are seeing a surge.”

To keep yourself protected, here are common “12 Scams of Christmas” to watch out for this holiday season:

1. Online Shopping Scams

Online shopping is popular during the holidays, and scammers set up fake websites offering deals on sought-after items. These fake sites often mimic real retailers, tricking customers into entering their payment details, only to receive counterfeit goods or nothing at all. Australians should double-check website URLs and stick to trusted retailers.

2. Parcel Delivery Scams

With more people shopping online, parcel delivery scams are widespread. Scammers send fake emails or texts claiming there’s an issue with delivery and requesting payment or personal details to “release” the package. Clicking on links in these messages can lead to phishing websites that capture your data or install malware on your device.

3. Charity Scams

The holidays inspire people to give, and scammers take advantage by setting up fake charities. They often use the names of well-known charities or concoct emotional stories to solicit donations. To avoid this, donate directly through established charity websites and be cautious about donating via cold calls or social media.

4. Fake Gift Card Scams

Fake gift card scams come in a few forms, but one of the most common involves scammers selling “discounted” gift cards that turn out to be invalid. Another tactic is emailing or messaging people claiming they’ve won a gift card, but to redeem it, they must provide personal information or pay a small “fee.”

5. Holiday Travel Scams

Many Australians book trips to visit family or take holidays over the summer season. Scammers set up fake travel websites or third-party booking platforms offering fantastic holiday deals, only for victims to realise the booking doesn’t exist. Always verify travel agencies and booking sites before making payments.

6. Romance Scams

While not strictly a holiday-only scam, romance scams see a spike in December as people seek companionship during the festive season. Scammers create fake profiles on dating sites or social media, forming relationships with victims and eventually asking for financial help, often with a fabricated emergency.

7. Cryptocurrency Scams

December can be an expensive time of year, with Australians having to spend money on buying presents and travelling to see friends and family. Scammers prey on this by luring in unsuspecting victims to make a quick buck by promising lucrative returns on cryptocurrency investments, by using fake testimonials or celebrity endorsements. Be wary of any unsolicited investment offers and avoid “too good to be true” schemes.

8. Phishing Emails and Smishing (SMS Phishing)

Phishing emails and smishing attacks tend to increase during the holidays. Scammers impersonate well-known companies, banks, or delivery services, sending messages with links to fake websites where they capture personal details. Never click on links in unsolicited messages; instead, access sites directly through a trusted browser.

9. Social Media “Secret Santa” or “Gift Exchange” Scams

Social media posts encourage people to join “gift exchanges” or “secret Santa” gift-swapping events. They typically promise that if you send one gift, you’ll receive several in return. However, these schemes rarely result in any gifts and are often a form of pyramid scheme designed to collect personal information.

10. Fake Surveys and Competitions

Scammers set up fake holiday-themed surveys or competitions on social media, luring participants with promises of prizes. Participants are asked to provide personal information or pay a small “entry fee” to win. Be cautious of any survey or competition that seems too good to be true or asks for sensitive information.

11. Fake Crowdfunding Appeals

Crowdfunding platforms make it easy to raise money for legitimate causes, but they also attract scammers. Some set up fake campaigns, especially around the holidays, tugging at heartstrings to solicit donations. Australians should check if the campaign is backed by a reputable organisation or verified by the crowdfunding platform before donating.

12. Holiday Job Scams

The holiday season offers temporary job opportunities, which scammers exploit by posting fake job ads online. These scams often require applicants to provide personal information or pay a “fee” to apply. Some may even “hire” you for a role that involves fraudulent activity, like reshipping goods bought with stolen credit cards.

Ultimately scammers are always working on new ways to “separate you from your money or personal information.”

Hannan said, “by staying vigilant, double-checking offers, and trusting only verified sources, Australians can outsmart scammers and keep their holidays joyful and scam-free.”