Holiday Tips To Help Avoid Scams, and Protect Your Finances
I worked in retail management for years, and wanted to share some of the holiday tips that I have learned over time, along with other good advice that I have received through friends and colleagues.
Tip 1. Understand your finances before you go shopping. We are all tempted to go beyond our budget, or to forget our financial planning when we are tempted by the hottest new gadgets, or when confronted with a fantastic sale. Set up a strict holiday budget, and follow it.
Tip 2. Avoid retail credit cards, and quick loan offerings that you cannot afford. Lenders know that many people will overspend during the holidays, and will use this to attract new borrowers. If you do feel the need to apply for a new credit card, or loan, be sure to thuroughly review all rates and terms carefully, and completely.
Tip 3. Only shop online from retailers you trust. Double check the domain name of the website you are shopping on in the browser to make sure you are on the correct site. Beware of links in unsolicited emails that could direct you to scam sites that are designed to have the appearance of your trusted retailer. Ensure that the website's checkout is secure by looking at the top of your browser. The domain name should contain https://. If you do want to shop with an unknown online retailer, first make sure the company has a physical address, and an operational phone number. I would also suggest using a search engine to check the name of the company to determine their reputation.
Tip 4. Never use wire transfers or money orders to pay for online purchases. There is no way to track these forms of payment if asked to verify that you have payed for the item.
Tip 5. Understand your retailer's return policy. One of the most frequent complaints dealing with holiday shopping involves a misunderstanding of a retailers return or refund policy. Prior to buying large ticket items for the holidays, be sure to thoroughly read and understand the store's policies. Know if the retailer charges restocking fees, or if some items may be ineligible for returns.
Tip 6. Be cautious of warranties and service plans. Retailers now offer warranties on just about everything. This is typically offered as an add-on sale at the point of purchase. Carefully consider the terms, and limitations of the plans offered, and determine if the additional cost warrant the benefits of coverage for the item.
Tip 7. Beware of bait-and-switch tactics used by some sellers. This is a scam that will often use items such as tech gadgets, gift cards, or jewelry. If you are offered a deal that seems to be too good to be true, than it almost always is. Only make big-ticket purchases if you are dealing with a well respected retailer.
Tip 8. Scammers can use high tech scanners to record the numbers on gift cards that are sold in retail stores. They will then put the cards back on the display, then monitor it to see if it is purchased. Once you have bought and activated the card, they can use the funds on it before you have the opportunity. The best way to avoid this scam is to only purchase gift cards that are kept behind the retailers sales counter, out of reach of the scam artist.
Tip 9. Be on the look out for fake charity scams. If you are going to donate to a charity, be sure to investigate the organization prior to giving them money. Avoid unknown charities that contact you through email, and always ask for a receipt when making a sizable donation.
Tip 10. Scammers will use hard luck stories to prey on the good holiday spirit felt during the holidays. This could come in form of an email asking for assistance, or you could even be approached in public by someone claiming to be stranded while traveling for the holidays. Never give out your address, any bank information, or significant amounts of cash to strangers.
Tip 1. Understand your finances before you go shopping. We are all tempted to go beyond our budget, or to forget our financial planning when we are tempted by the hottest new gadgets, or when confronted with a fantastic sale. Set up a strict holiday budget, and follow it.
Tip 2. Avoid retail credit cards, and quick loan offerings that you cannot afford. Lenders know that many people will overspend during the holidays, and will use this to attract new borrowers. If you do feel the need to apply for a new credit card, or loan, be sure to thuroughly review all rates and terms carefully, and completely.
Tip 3. Only shop online from retailers you trust. Double check the domain name of the website you are shopping on in the browser to make sure you are on the correct site. Beware of links in unsolicited emails that could direct you to scam sites that are designed to have the appearance of your trusted retailer. Ensure that the website's checkout is secure by looking at the top of your browser. The domain name should contain https://. If you do want to shop with an unknown online retailer, first make sure the company has a physical address, and an operational phone number. I would also suggest using a search engine to check the name of the company to determine their reputation.
Tip 4. Never use wire transfers or money orders to pay for online purchases. There is no way to track these forms of payment if asked to verify that you have payed for the item.
Tip 5. Understand your retailer's return policy. One of the most frequent complaints dealing with holiday shopping involves a misunderstanding of a retailers return or refund policy. Prior to buying large ticket items for the holidays, be sure to thoroughly read and understand the store's policies. Know if the retailer charges restocking fees, or if some items may be ineligible for returns.
Tip 6. Be cautious of warranties and service plans. Retailers now offer warranties on just about everything. This is typically offered as an add-on sale at the point of purchase. Carefully consider the terms, and limitations of the plans offered, and determine if the additional cost warrant the benefits of coverage for the item.
Tip 7. Beware of bait-and-switch tactics used by some sellers. This is a scam that will often use items such as tech gadgets, gift cards, or jewelry. If you are offered a deal that seems to be too good to be true, than it almost always is. Only make big-ticket purchases if you are dealing with a well respected retailer.
Tip 8. Scammers can use high tech scanners to record the numbers on gift cards that are sold in retail stores. They will then put the cards back on the display, then monitor it to see if it is purchased. Once you have bought and activated the card, they can use the funds on it before you have the opportunity. The best way to avoid this scam is to only purchase gift cards that are kept behind the retailers sales counter, out of reach of the scam artist.
Tip 9. Be on the look out for fake charity scams. If you are going to donate to a charity, be sure to investigate the organization prior to giving them money. Avoid unknown charities that contact you through email, and always ask for a receipt when making a sizable donation.
Tip 10. Scammers will use hard luck stories to prey on the good holiday spirit felt during the holidays. This could come in form of an email asking for assistance, or you could even be approached in public by someone claiming to be stranded while traveling for the holidays. Never give out your address, any bank information, or significant amounts of cash to strangers.
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