Be on the Lookout for These 3 Holiday Scams

The holiday season is busy—and scammers know it. Here are three common holiday scams, how to recognize them, and simple ways to keep you and your money safe.

Scam #1: Package delivery alert

How it works:

• Scammers send a text message that looks like it’s from USPS, UPS, FedEx, etc., claiming your package is held due to unpaid customs, tariffs, or delivery fees, or they’ve unsuccessfully tried to deliver the package to you.
• If you open the link or call the number provided, the scammer says you need to pay a small fee and asks for personal information (name, billing address, card number, 3-digit security code from the back of your card).
• Once the scammer has your card information, they make large withdrawals or empty your account completely.

Protect yourself: If you’re expecting a package, track delivery progress through the retailer’s official website.

Scam #2: Fake fraud alert

How it works:

• Scammers send a fraud alert text message that appears to be from a trusted financial institution and directs you to a page that mimics your bank or credit union’s real login page.
• The fraudster may then call from a number spoofing your bank’s phone number and ask questions like, "Can you confirm your username?" or "Can you read back the 6-digit code that I sent you?"
• If you hesitate, the scammer says, "If you want to verify who I am, just compare the number I’m calling from to the number on the back of your card."
• They may tell you not to access your account for a few hours or days while they "settle" the fraud situation. When you finally log in, your money is gone.

Protect yourself:

• Look at the number the text message came from. Most legitimate fraud alerts will come from short codes or numbers, usually only 5-6 digits.
• If you’re unsure about an alert, contact your financial institution at the number you trust. If you want to verify a fraud alert from RCU, send a screenshot of the message you receive to fraud@redwoodcu.org.
• Check your accounts for the pending transactions mentioned in the fraud alert. If nothing matches, contact your financial institution.

Scam #3: Gift Card Purchase

How it works:

You’re asked to purchase gift cards as a form of payment or money transfer in a variety of situations:

• Someone from "law enforcement" informs you that you’ve missed jury duty and there is a warrant out for your arrest because you haven’t paid a fine.
• An online romantic interest claims to be short on cash or needs funds for some other reason.
• A friend or family member reaches out via their (hacked) social media account to ask for money.
• The IRS or another government agency demands payment for an overdue bill.
• The CEO of the company you work for texts you to ask for help with a holiday team gift or charity purchase.
• You’re unexpectedly offered a remote or secret shopper job opportunity. The company sends you a (counterfeit) check to cover any costs and then asks you to purchase gift cards.
• An "online lender" requires you to purchase gift cards to build credit or as a good faith payment to show willingness to pay back your loan.

Protect yourself: Ignore or cut off contact with anyone who requests a gift card for payment.

Remember, staying alert is your best defense.

• Never click links or call numbers from unexpected texts or emails.
• Don’t let anyone rush you. Urgency is always a red flag.
• Financial institutions and government agencies will never contact you and ask for your username, password, or verification codes. If someone asks for this information, hang up.
• Always verify phone numbers from official sources, not search results. Some fraudsters pay for search listings that spoof companies and provide fake phone numbers.