The Naughty List: BBB's 12 top scams of the holidays and how to avoid them

1. Misleading social media ads:

As you scroll through your social media feed, you often see products advertised.

Always research before you buy. BBB Scam Tracker receives daily reports of people paying for items they never received, being charged monthly for a free trial they never signed up for, or receiving an item that is counterfeit or significantly different from the one advertised.

The 2024 BBB Scam Tracker Risk Report found that online purchase scams were the fourth riskiest scam reported by consumers in 2024.

Before ordering, check out the business profile on BBB.org and read the reviews.

Read more about misleading ads, free trial offers, and counterfeit goods.

2. Social media gift exchanges:

Each holiday season, this scheme pops back up. The older version was called "Secret Sister." Newer versions of this scam revolve around exchanging bottles of wine or bourbon; another suggests purchasing $10 gifts online. Another twist asks you to submit your email address to a list where participants can pick a name and send money to strangers to "pay it forward." There is even a twist about "Secret Santa Dog" where you buy a $10 gift for your "secret dog." 

In all these versions, participants unwittingly share their personal information, along with that of their family members and friends, and are further tricked into buying and shipping gifts or money to unknown individuals. It's also an illegal pyramid scheme. Stick to buying your friends gifts from trustworthy businesses, and check BBB.org before you buy. 

Read more about the social media gift exchange scams.

3. Holiday apps:

Apple's App Store and Google Play list dozens of holiday-themed apps that let children video chat live with Santa, light the menorah, watch Santa feed live reindeer, track his sleigh on Christmas Eve, or relay their holiday wish lists.

Review privacy policies to see what information will be collected. Be wary of free apps, as they can sometimes contain more advertising than paid apps. Free apps can also contain malware. Be sure to read reviews as well. 

Read more about holiday apps.

4. Fake toll collection texts:

If you’re planning to drive a long distance to visit family or take a vacation this holiday season, watch out for fake road toll collection texts, which have been on the rise this year.

In this con, scammers impersonate a state road tollway collection service and text you saying you owe a road toll fee, then provide a link to make your payment. If you receive a text, don’t click the link. Instead, if you think you may owe road tolls, verify your outstanding balance with the legitimate agency.

Read more about fake road toll collection scams and travel scams.

5. Free gift cards:

Nothing brings good cheer like the word "FREE." Scammers have been known to exploit this weakness by sending bulk phishing emails requesting personal information in exchange for free gift cards. In some of these emails, scammers impersonate legitimate companies and promise gift cards to reward their loyal customers. They may also use pop-up ads or send text messages with links saying you were randomly selected as the winner of a prize. 

If you have received an unsolicited email offering gift cards, do not open it. Instead, mark it as spam or junk and delete it. However, if you opened the email, do not click on any links.

Read more about gift card scams.

6. Temporary holiday jobs:

Employment scams were identified as the riskiest scam for people ages 18-34 in 2024. If you’re looking for seasonal work this holiday season, keep an eye out for opportunities that seem too good to be true.

Retailers typically hire seasonal workers to help meet the demands of holiday shoppers. Shippers and delivery services are top holiday employers because of the increase in online orders that need to be delivered before Christmas. Job seekers need to be wary of employment scams that aim to steal money and personal information from applicants.

Read more about holiday job scams and employment scams.

7. Impostor scams:

Impostor scams can take many forms, especially during the holiday season when you may be purchasing and returning gifts. When shopping online, be on the lookout for fake, look-alike websites created by scammers to trick people into downloading malware, making dead-end purchases, and sharing private information.

If you’re reaching out to a business on social media for customer support, watch out for fake social media accounts pretending to be a customer service representative for a business. When in doubt, go to the business’s website and find their official social media handles, or use the information on the site to reach out.

Read more about impostor scams and how to identify a fake website.

8. Fake charities:

The last few weeks of the year are a busy time for charitable donations. Donors are advised to look out for fraudulent charities and scammers posing as individuals in need.

Avoid impromptu donation decisions to unfamiliar organizations. Responsible organizations will welcome a gift tomorrow as much as they do today. Verify a charity at BBB's Give.org or on the Canada Revenue Agency website. Where possible, donate to the charity through their website and use a credit card.

Read more about fake charities.

9. Fake shipping notifications:

More consumers making online purchases during the holidays leads to an increase in notifications about shipping details from retailers and carriers. Scammers use this surge to send phishing emails and texts about package deliveries with links enclosed that may allow unwanted access to your private information or download malware onto your device.

They may also try to trick people into paying new shipping fees. Never click a link in a text or email that you’re not expecting. If you want to track a package, find the original email or text confirmation you received directly from the store and use that link.

Read more about fake delivery texts and delivery and package scams.

10. Advent calendars:

Each year, more and more Advent calendars are sold; CNN has a list of over 20 calendars, and many are in high demand. In past years, BBB received reports to Scam Tracker about advent calendar ads on social media not delivering as promised. Some were not received, and others received inferior products or incomplete orders. 

Consumers should research before they buy, read reviews, and check the company on BBB.org . BBB also has a shopper's guide to help you purchase that niche Advent calendar. 

Read BBB's tips for buying an advent calendar.

11. Holiday wishlist items:

Low-priced luxury goods, jewelry, designer clothing, and electronics are almost always cheap counterfeits and knockoffs. The same applies to popular toys. This year, the TOSY Magnet Cube, Klutz Lego Gravity Drop Activity Kit, Easy Bake Ultimate Electric Oven Toy, and the Ms. Rachel Emotions Learning Doll Stuffed Animal are some of the items in high demand. Be very cautious when considering purchasing popular toys from resellers on Facebook Marketplace and other platforms.

Read more about holiday hot toy scams and online purchase scams.

12. Puppy scams:

Many families may be considering adding a furry friend to their household this year. However, be on the lookout for scams. Many would-be pet owners turn to the internet to find their future cat or dog, but experts say a shocking 80% of sponsored pet advertisements may be fake. Be sure to see the pet in person before making a purchase.

Read more on pet scams.

Key Points:

• Online purchase scams remain a top holiday threat, with fraudulent ads, fake products, and misleading free trials reported daily.

• Social media gift exchanges and similar programs are illegal pyramid schemes that expose participants’ personal information.

• Fake toll collection texts, phishing messages, and bogus shipping notifications are on the rise, often containing malware or links to fraudulent payment portals.

• Employment scams targeting seasonal job seekers are particularly dangerous for younger adults, according to 2024 BBB findings.

• Fraudulent charities and pet scams spike during the holidays, making it essential to verify organizations and meet sellers or animals in person before donating or purchasing.