Don’t Fall Prey to a Holiday Toy Scam

Scammers famously exploit high-stress times, and the pre-holidays shopping frenzy is no exception. That’s why the BBB is warning of an uptick in holiday toy scams which can be difficult to spot.

Here’s what you need to know about these scams.

How the scam plays out

Every year, there are a few must-have toys on most kids’ wish lists. These choice picks become the hottest-selling items and are plucked off shelves in a wink. Unfortunately for anyone who didn’t shop early enough, these toys soon become impossible to find. The parents search desperately, but to no avail.

Here’s where the scammer steps in. Armed with a bogus website and some crafty online tracking, the scammer targets the vulnerable shopper with ads and online messages to draw the shopper to the scammer’s site. On the authentic-looking site, the shopper finally finds what they seek — the sought-after toy! Often, the toy is also deeply discounted. The purchase is completed within minutes.

Unfortunately, though, the scammer will send a cheap knockoff that doesn’t work or quickly breaks. When contacted for a refund, the scammer refuses to provide one or offers only to refund a small percentage of the purchase price. Sometimes, they’ll also charge an exorbitant amount of money for shipping it back to the company, almost making the small refund not worthwhile.

Red flags

Here’s how to spot these scams:

The seller has a large supply of toys that are in high demand.
The website is not secure.
The seller is offering a steep discount due to a “flash sale” or “last-minute” deal.
The seller’s website is full of spelling and/or grammatical errors.

Stay safe

Keep yourself safe when shopping online with these tips:

Research before you buy. Avoid purchasing an expensive item from a company you’ve never heard of before without doing some digging.
Look for the lock icon and the “s” after the “http” on the URL before buying anything.
Review item return policies before making a purchase.
Pay with credit for purchase protection power.
Keep your security software up to date.
Hang on to any purchase order confirmations.
Don’t trust links in unsolicited emails. Scammers will often impersonate reputable websites in order to gain access to your account information. Go to a company website directly when looking for an item.
If you believe you’ve been targeted by a holiday toy scam, end all contact with the seller immediately. Alert the BBB and let your friends know about the circulating scam as well.

Shop safely this holiday season!

Beware Emergency Scams!

“Grandma, you gotta help me! They’re going to arrest me if I don’t pay the fine – and I lost my wallet! Can you wire me some money?”

Sounds like a heart-tugging phone call, doesn’t it? It’s actually just a plot by devious scammers. There’s no imminent arrest and no lost wallet. In fact, it isn’t even your grandchild on the line.

Family emergency scams are especially nefarious since they take advantage of the natural affection a grandparent has for a grandchild. They’re usually pulled off in the guise of a frantic phone call that appears to be from the victim’s grandchild.

Here’s how to identify an emergency scam and what to do if you’ve been victimized.

3 ways to spot emergency scams

1. The caller insists upon secrecy

Once your “grandchild” has had his or her say, the scammer will then take the phone, impersonating an authority figure who is out to make the arrest and demanding that payment be made immediately. They’ll stress the importance of keeping it hush-hush so nobody gets hurt, but the real reason behind their gag order is to keep you from digging and identifying the scam.

2. The “authority figure” will only accept certain payment methods

If you receive a phone call insisting that you wire money, or send a prepaid debit card or certified check to save your grandchild from a distressing situation, you’re looking at a scam.

3. Your “grandchild” doesn’t know basic identifying information

It can be difficult to recognize your grandchild’s voice over a phone that has iffy reception. If you receive a call like the one described above, ask the caller about some information that a stranger would not be able to find on your grandchild’s social media accounts. This will let you know who you’re dealing with.

If you’ve been scammed

If you’ve gotten a frantic phone call like this from your grandchild and you believe it to be true, don’t react. First, call your grandchild on your own to verify his or her whereabouts. You may be surprised to learn your grandchild is safe at home!

If you’ve only recognized the ruse after you’ve sent your money, report the scam to the Federal Trade Commission at ftc.gov.

How to Recognize and Protect Yourself from Scams

Here at Olean Area Federal Credit Union, our biggest priority is your financial wellness. It’s important to note that the following information does not cover all types of scams or financial security threats in existence, and that these threats are constantly changing and evolving.

To help keep you safe, we’ve made this guide about how to recognize and protect yourself from scams that are common today.

Five ways to spot a scammer

1. They ask for detailed information before agreeing to process an application.

2. They insist on a specific method of payment.

3. They send a check for an inflated amount to a seller or “employee,” and then ask the victim to mail them the extra money. Of course, the original check will not clear.

4. You can’t find any information about the company the caller allegedly represents.

5. You’re pressured to act now.

Who are the targets?

Here are some of the most common targets of scams:

The unemployed. If you’re job-hunting, don’t respond to emails offering you a “dream position” you never applied to have.
The aging. Older people often spend lots of time online. They can also be less aware of the dangers lurking there.
Children. Children will more readily share information with strangers, which can then be used to steal their identity.

What do scams look like?

These are some of the most common scams:

Cyberhacking. Hackers gain remote access to your computer-and personal information.
Phishing scams. Scammers bait you into sharing personal information, which they use to hack your accounts or steal your identity.
Mystery shopper. A bogus company will “hire” you to purchase an item in a store and then report back on the experience. Before you get started, though, you’ll have to pay a hefty fee, which you’ll never see again.
Job offers. Scammers “hire” you for a position and then scam you by sending you an inflated check, as detailed above.
Sweetheart scams. A scammer pretending to be an online lover or unknown relative will con you into sending them money and gifts or sharing personal information.
Fraudulent investments. Scammers reach out to victims with information about lucrative investments that don’t exist.

10 ways to protect yourself from scams

1. Never share personal or financial information with someone you don’t know or that you didn’t initiate contact with.

2. Don’t open unsolicited emails. If you do, don’t click on any links in them.

3. Never send money to an unknown party.

4. Protect your devices by using the most current operating systems, choosing two-factor authentication and using strong, unique passwords for every account.

5. Choose the strongest privacy settings for your social media accounts.

6. Keep yourself in the know about the latest scams. You can sign up for free scam alerts from the Federal Trade Commission by clicking here.

7. Educate your kids about basic computer safety and privacy.

8. If you have elderly parents, talk to them about common scams and teach them to protect themselves.

9. If a government agency or a company calls and asks you to share personal information, tell them you’ll contact them on your own.

10. Never accept a job or pay for a purchase or service without researching the company involved.