'Tis the season for holiday scams: What you need to know

The holidays are fast approaching, and almost everyone is booking time off work to rest and recharge — except scammers. In December, they log more overtime than warehouse workers scrambling to meet holiday delivery deadlines.

After all, people are busy, distracted, and tired, the perfect conditions for most people to fall for scams they'd ordinarily be able to spot a mile away.

So, what can you do to avoid falling for a holiday scam? It's important to be aware of the strategies holiday scammers will use to try and trick you. We've outlined the most popular holiday scams, how to spot them and what to do to avoid being taken in.

Knowledge is power. When it comes to scams, knowing what to look for makes all the difference between spending your holiday on the phone with the credit bureau and actually enjoying your break.

Delivery scams typically start with a text, email or phone call saying that there are difficulties delivering your package. Sometimes, they tell you that you owe duty on something you've ordered from overseas and ask you to click on a link to finalize payment. People are more likely to fall for delivery scams over the holidays. It’s like a second job keeping track of all the packages coming in and which companies are shipping them. Scammers take advantage of this. 

Delivery scams fall into three categories: those that spoof (impersonate) well-known shipping companies by creating a mirror-image of the real sites, those that change the name of a well-known shipping company slightly (think Purolator or FedEx), and those that create an entirely new, fraudulent shipping company.

These holiday scammers rely on you panicking that one of your gifts won't arrive in time. They'll ask you to click a link to either input your personal information, pay a customs or delivery fee, or install malware (malicious software) on your device to steal your information.

Delivery scams can be hard to spot as fraudsters make fake websites and emails which often look legitimate. Due to the scam's popularity, assume all delivery-related emails or texts are scams until verified. To help you decipher scam messages from real ones, keep a list of all the packages you're expecting, their tracking numbers and the companies shipping them. If you're in doubt, check the message against your list. Always log in directly to the online retail store from which you purchased your item to check the delivery status or double check with the shipping company.

Red flags include:

• The website URL starts with “http” instead of “https” (the “s” stands for secure) and does not display a tiny padlock icon in the address bar.
• Check the sender's domain on emails. If it's not the right domain, it's a scam.
• Texts from companies you've never given your phone number to.
• Unexpected charges.
• Urgent messages telling you to act now.
• Requests to update your delivery and payment preferences.
• Voicemails with a call-back number that doesn't match the shipper's service number.
• Call back numbers with an 809-area code or 10-digit international number.
• A phone operator asking you to verify your account information or credit card number.
• A link that doesn't clearly show the domain it's sending you to.
• Certificate errors or lack of online security protocols.
• Missing company information, including address or phone number or missing website elements, like privacy and customer service details.
• Spelling mistakes and bad grammar.

Who doesn't love a gift card? Unfortunately, because they are less protected from fraud than bank cards, e-transfers or other types of payments, scammers love them too.

There are two main gift card scams you need to watch out for. The first involves a fake request. The scammer will reach out to you by phone, text or email. Using scare tactics, those running the scam may claim to be from a government agency or service or pretend to be a family member, friend, or colleague. They'll invent some crisis, like insisting you need to make a payment immediately or your utilities will be cut off. But they won't ask for payment through the usual channels like mailing a cheque. Instead, they'll insist you send gift card PIN numbers.

Holiday versions of this type of gift card scam include fake charity requests asking for donations in the form of gift cards or a supposed family member or "friend" calling to ask you to buy them gift cards so they can make it home for the holidays, with the promise to pay you back later.

In the second type of gift card scam, fraudsters tamper with physical gift cards taken from a store's rack and then return them to the display. This tampering can happen in several ways. For example, they may alter the barcodes or PINs, cover them with barcode stickers linked to their own accounts, or find a way to access and record the barcodes and PIN details.

If you purchase and activate a tampered gift card with an altered barcode, the money is loaded onto the scammer's card instead of yours, leaving you with an empty card. In scams where the scammer has accessed the card's details, they'll remotely monitor the card to quickly drain the funds once it's been activated, either through purchases or by transferring the amount to another card.

The "fake request" scam can be easy to detect. If anyone tells you that they need you to pay them in gift cards or need you urgently send them gift cards, you're likely being scammed. As great as gift cards are, very few real emergencies require you to urgently send one to someone.

Red flags include:

• Phone calls from someone who doesn't immediately identify themselves but says, "It's me."
• An incomprehensible need for gift cards.
• Requests from companies and government agencies that never otherwise accept gift cards as a payment method.
• A request that you buy the cards at multiple, different stores.
• Spelling mistakes, bad grammar or broken English.
• Urgent messages telling you to act now.

Detecting a tampered gift card can be more challenging, depending on the scammer's skill level. Before purchasing a gift card in-store, check the card for any warning signs that it may have been tampered with.

Red flags include:

• Tears, wrinkles, or other signs of tampering on the gift card packaging.
• A damaged or missing protective sticker on the back of the card.
• An exposed or revealed PIN.
• A second barcode sticker applied over the top of the original sticker.

If you think a gift card has been tampered with, don't purchase it and let a store employee know.

If someone tells you that you owe them money, you likely want to pay them quickly. This time of year – everyone has bills to pay, even large companies. That’s why invoice scams become increasingly popular during the holidays.

While they take advantage of people who just want to pay their bills, fraudsters also prey on people who are stretched financially and will frantically click on a link in an invoice email if they don't recognize the charge or if the charge seems abnormally high.

Invoice fraud works in two main ways: tricking people who don't owe money or confusing people who do owe money into clicking on a malicious link in an email for payment information. If you give them your payment information, they'll steal your credit card number.

If you click on a link, malware could be downloaded to your computer. You may be prompted to enter your login credentials or credit card information, allowing scammers to access your stored personal information, like credit card details or your address. 

Fake invoice scams can be difficult to recognize. If you're purchasing a lot of gifts, you might think it's an invoice for one of them. You might also recognize it's wrong and click on the link, hoping to correct it before realizing it's a scam.

Red flags include:

• Unusual requests or dollar values you don’t remember spending.
• Invoices for items or services you didn't purchase.
• Suspicious links, especially those requiring you to click a link to view an invoice.
• An invoice from a company you've never done business with.
• Check the domain of the sender on emails. If it's not coming from the right domain, it's a scam.
• Links that go to an illegitimate or misspelled URL.
• Request for an odd payment method like gift cards.
• The website URL starts with “http” instead of “https” (the “s” stands for secure) and does not display a tiny padlock icon in the address bar.
• Spelling mistakes, bad grammar or broken English.
• Urgent messages telling you to act now.

In addition to these common holiday scams, it is important to be aware of other potential fraudulent activities during the holiday season:

Brushing scams: Watch out for unsolicited packages that are sent with no return information. Fraudsters often include a card with a QR code inside the package, asking you to scan and register to find out who sent you the gift. Scanning the QR code will send you to a malicious website where the scammers can steal your sensitive information.

Fake website scams: These holiday scams involve websites designed to impersonate legitimate websites, promote fictitious companies, sell counterfeit products, or offer substantial discounts on popular gift items. Some are even advertised on social media sites before they get flagged.

Travel scams: Texts, emails or phone calls go out offering free flights or massive discounts on holiday travel. Sometimes, they look like they're coming from legitimate hotels, airlines or other travel-related businesses. Fraudsters hope you'll give them your credit card information or click on a link to load malware onto your computer. If you get a travel offer that seems too good to be true, don't click on the link before you check the domain of the sender or go directly to the company's site.

Charity scams: These are texts, emails, phone calls or letters from people claiming to be from legitimate charities. Unfortunately, they're not helping others— they are helping themselves to your credit card info.

Never give money to unsolicited callers or donate via unfamiliar links. Either call the organization or navigate to the website by typing their address into your browser.

Peer-to-peer payment request scams: These requests involve scammers posing as friends or family, claiming financial hardship and asking for money via third-party payment platforms, email transfers or fundraisers. Always connect with your friend or family member directly before sending any money.

Falling for scams can be stressful, but there are steps you can take to recover. Here's what to do:

• Call your credit card issuer or other payment processor and tell them about the fraudulent charges. Many companies can reverse the transactions.
• Ask your card issuer or processor to cancel your credit card or put a hold on your account. If you are a Scotiabank customer and suspect your VISA or AMEX cards are compromised, you can lock them immediately through ScotiaOnline or the mobile app.
• Immediately change any login information for online accounts you might have inadvertently given scammers access to.
• Run a malware and virus scanner on your computer.
• Report the scam to local police, the Canadian Anti-Fraud Center or the Competition Bureau.

While you might be tempted to feel ashamed if you get tricked by scammers during the holidays, it's important to know that anyone can fall for a holiday scam. When you're busy decorating and preparing for the holidays, it's easy to overlook red flags or click on a link you shouldn't.

Knowing the signs of a holiday scam can help you spot them — even when you're stressed or in a hurry. With this info, you’ll have the tools to dodge scammers so you can spend your holiday building snowmen or drinking hot cocoa.