Protecting your hard earned money from Holiday scammers – Herb Weiss

By Herb Weiss, contributing writer on aging issues

With the approach of the Christmas holidays and consumers ramping up their holiday shopping, the Washington, DC AARP warns shoppers to be aware of the uptick of scams. A new 2023 AARP Fraud Watch Network^TM report puts the spotlight on how criminals target consumers during the holiday season.  

According to the report, 80% of U.S. consumers say that they have experienced some type of fraud in 2023 – many occurring during holiday shopping season.  The researchers say that these scams have increased from last year’s report, from receiving fake notifications about shipments, to online ad scams, and more.

“The concerning findings from our annual survey are that fraud is on the rise and that knowledge about how to stay safe from fraud is dropping,” said Kathy Stokes, AARP Director of Fraud Prevention Programs in a December press release announcing this year’s findings. “Education plays an important role in combating fraud, but we can’t educate our way out of what is now a rampant issue,” she said.

AARP’s report noted that in 2023 significantly more consumers plan on shopping online compared to the last two years. With this increase in internet shopping, scammers often place fake ads online and across popular social media sites offering steep discounts on the hottest items. 

Although peer-to-peer payment platforms such as Venmo, PayPal, Square Cash, and Zelle, etc. have been around for awhile, they have become increasingly popular as a way to make online payments to businesses. Consumers turn to these platforms for convenience, speed and security.  

According to AARP’s findings, the use of these services have increased significantly for a second year in a row. A large majority of respondents shared they do business those, or similar, apps – such as sending money to businesses they have no previous relationship with. In the unfortunate event of fraud, these apps provide little protection to scammed consumers, warns the report.

Gift cards continue to be popular gifts, 66% of those surveyed planning to purchase them this holiday season. However, 27% of consumers have experienced either giving or receiving a gift card with no monetary value on it. “Criminals have old-school ways of manipulating cards hanging on retail racks and high-tech ways of searching online for cards with balances and draining them,” says AARP’s Stokes. “It may be safest to purchase a gift card directly from the card issuer’s website,” she notes.

In a 10-question fraud knowledge quiz that was again part of this year’s AARP survey, most respondents failed with only 28% of being able to answer only 7 or more questions correctly.   The quiz results call for the need to make consumers aware that retailers will never request your login information to provide customer support.  

AARP’s recently released report suggests: 

It’s better to use credit cards for purchasing gifts because they offer the most consumer protections of any payment method.

It’s important to regularly accept some upgrade prompts for your devices because these updates are to patch known fraud vulnerabilities.

It’s risky to do a web search for a company’s customer support network because criminals buy ads impersonating those companies. Check billing and credit card statements for customer service, use the number on the back of your credit cards, or go directly to the company by typing in their web address, like www.aarp.org.

AARP Rhode Island – Fighting Fraudsters

“AARP Rhode Island works hard every day to make sure that Rhode Islanders have all the information they need to protect themselves and their families from scams, especially around the holidays,” said AARP Rhode Island State Director Catherine Taylor. “We hold regular fraud-prevention tele-town halls, our Speakers Bureau volunteers give free Fraud Watch presentations to audiences across the state, and we fight fraud via AARP’s Fraud Watch network (www.aarp.org/fraudwatch), which provides vital information and scam alerts. Anyone can subscribe for free,” she says.

“Last summer, AARP Rhode Island held free document shredding events around the state where more than 900 people dropped off nine tons of documents,” Taylor added. “And we are so pleased that the General Assembly passed our bill to address gift card fraud this year. Retailers are now required to post warnings to consumers that it is always a scam if someone asks you to buy a gift care to pay a bill or fee.  If you can spot a scam, you can stop a scam,” she says.

Approaching holidays gives more opportunities for deception says RI Attorney General

“The best way Rhode Islanders can avoid falling victim to a scam during the holiday season, and year-round, is to stay vigilant and stay educated,” said Rhode Island Attorney General Peter Neronha. “Scammers are becoming more and more sophisticated in the way they target their victims, and the holidays provide new opportunities for deception. Rhode Islanders can and should call our office or visit our website for advice and information if they are faced with a possible scam situation.”

Watch out for text or phone scams that appear to be from UPS, FedEx, or other mail services, warns the AG’s Consumer Unit. This can be as simple as a text message stating that UPS tried to deliver a package, but was unable to do so, or as deceptive as a phone call telling a consumer they will not receive their package unless they pay money in cash or gift cards. Consumers should not click on any links they receive via text message or Facebook message from numbers they do not know.

The AG’s Consumer Unit says that paying by credit card gives consumers more protection than other forms of payment. The payment apps mentioned (Cash App, Zelle, PayPal, etc.) cannot offer the same level of protection as paying by credit card. Gifts cards and cash payments are a red flag that a consumer may be the victim or potential victim of a scammer. Do not buy from individuals who request payment outside of a trusted online marketplace’s payment system.

Always do your own research.  A consumer may be able to quickly determine whether they are being targeted by scammer from a simple online search including keywords and “scam” or “complaint.” User feedback on the Better Business Bureau website may also help consumers identify whether the company they are interacting with is legitimate or fraudulent, says the AG’s Consumer Unit.  

Before spending hard-earned money on an opportunity, good, or service that may be a scam, consumers can reach out to our Consumer Unit with questions or concerns at (401) 274-4400 (prompt 1). An investigator or attorney will get back in touch as soon as possible. Alternatively, consumers may file a complaint online at http://riag.ri.gov/forms/consumer-complaint.

To read the full 2023 AARP Fraud Watch Network Report and learn more visit: www.aarp.org/holidayscams2023

Additional Resources:

Finally, AARP Fraud Watch Network^TM is a free resource that equips consumers with up-to-date knowledge to spot and avoid scams, and connects those targeted by scams with our fraud helpline specialists who provide support and guidance on what to do next. Anyone can call the helpline at 877-908-3360. AARP Fraud Watch Network^TM also offers free, facilitated peer discussion groups that seek to provide emotional support for those experiencing fraud; and advocates at the federal, state, and local levels to enact policy changes that protect consumers and enforce laws.

For a copy of the U.S. Senate Special Committee on Aging, “Fighting Fraud: Toop Scams in 2023, go to https://www.aging.senate.gov/imo/media/doc/fraud_book_2023__english.pdf.

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 Herb Weiss, LRI -12, is a Pawtucket-based writer who has covered aging, health care and medical issues for over 43 years.  To purchase his books, Taking Charge: Collected Stories on Aging Boldly and a sequel compiling weekly published articles, go to herbweiss.com

Herb Weiss has enjoyed a distinguished 43-year career in journalism, earning a national reputation as an expert on aging, health care and medical issues.  Over 900 articles that he has authored or co-authored have appeared in national, state and local publications and newspapers.

Today, Herb’s weekly newspaper column appears in the Blackstone Valley’s Woonsocket Call and Times, a daily newspaper, and in RINewsToday, a statewide digital news site.  He also writes for the Warwick Beacon, Cranston Herald and Senior Digest.

In 2016, he published his first book, a collection of his articles for seniors, called Taking Charge: Collected Stories on Aging Boldly.  Herb has published an additional anthology of his collected articles and columns in 2021 called Taking Charge, Volume 2: More Stories on Aging Boldly.  He is a recipient of the 2003 AARP Rhode Island’s Vision Award for his weekly commentary that appeared in the former Pawtucket Times.

He is a two-time recipient (1994 and 1999) of the American College of Health Care Administrator’s National Award for his coverage of long-term care issues.  He was also awarded the Distinguished Alumni’s Award by the Center for Studies in Aging, North Texas State University, in 1997, for his career coverage of aging issues.  That year, he was also selected by the prestigious McKnight’s LTC News to be one of its “100 Most Influential People” in Long-Term Care.  

Herb was appointed by five governors to serve on the Rhode Island Advisory Commission on Aging. The appointments were made by Governors Bruce Sundlun (1994), Lincoln Almond (1999, 2000), Donald L. Carcieri (2005), Gina Raimondo (2016), and Daniel J. McKee (2022). He was also appointed by Rhode Island Senate President Dominick J. Ruggerio in November 2021 to serve on the Advisory Council on Alzheimer’s Disease Research and Treatment.  

Herb is a 2012 graduate of the Theta II Class of Leadership Rhode Island.

To purchase his books, Taking Charge: Collected Stories on Aging Boldly and a sequel compiling weekly published articles, go to herbweiss.com.