FBI warns of grinches laying in wait for holiday shoppers

SAN FRANCISCO -- Tis the season of giving, but the FBI has issued a warning to be on alert for scams from those who want to rob you of your holiday joy.

Officials at the FBI's San Francisco office said online shoppers should be on extra alert.

"The FBI anticipates increased fraud schemes designed to steal consumers' money and personal information this year," officials said in a news release. "Criminals are increasingly creative in their efforts during the holiday season and will aggressively try various ways to prey on unsuspecting shoppers."

Federal agents said the two most prevalent holiday scams are non-delivery and non-payment crimes.

 A non-delivery scam is where a buyer pays for goods or services they find online, but those items are never received.

Meanwhile, a non-payment scam involves goods or services that are shipped or provided, but the seller never receives payment.

Within the 15 counties covered by the FBI's San Francisco office, over 2,100 complaints were reported with a combined loss of more than $8 million in non-payment or nondelivery scams last year.

Santa Clara County had the highest dollar amount losses and number of complaints by victims of this scam, followed by Alameda County.

 So far this year, agents say, Alameda County's dollar amount loss of nearly $2 million has already exceeded the previous year's total losses. 

The FBI also anticipates a higher loss in funds with investment scams this year, primarily due to the significant increase in "Pig Butchering," which involves the investment in virtual currency.

 "Pig Butchering" scams occur when a scammer fosters a relationship with a victim they've met online and then convinces that victim to invest in cryptocurrency to take advantage of potential high-yield returns.

The scammer will direct the victim to websites that appear authentic but are controlled by the scammer.

Other Scams to be mindful of this season include:

•  Online Shopping Scams Scammers offer deals through phishing emails or advertisements. ▪ Social Media Scams Scammers use social media sites to offer holiday promotions, vouchers, or gift cards by completing surveys designed to compromise your personal information.
•  Gift Card Scams Victims receive a spoofed email, call, or text asking them to purchase multiple gift cards for personal or business reasons.
•  Charity Scams Criminals set up fake charities and profit from persons who believe they are donating to a legitimate organization.
•  Smartphone App Scams Scammers design mobile apps designed as free games that steal your personal information. 

 "We want the public to know there are actions they can take to mitigate their chances of being victimized by an online scam," said FBI Special Agent in Charge Robert Tripp. "The FBI encourages consumers to treat online shopping as they would walking into a physical location – be aware, be alert, and safeguard your personal information and finances." 

Here are some tips to avoid being victimized:

• Before shopping online, secure all financial accounts with strong passwords. Use different passwords for each financial account.
•  Don't click suspicious links or attachments in emails, websites, or social media. Especially those asking for a password or financial data. This also may result in unknowingly downloading malware to your device.
• If a company asks you to update your password or account information, contact the company on your own using information from their official website. 
•  Be wary of online retailers offering goods at significantly discounted prices. If a deal seems too good to be true, it likely is. ▪ Beware of purchases or services that require payment with a gift card.
• Use a credit card vs. a debit card to make purchases and check credit card statements routinely.
•  Make charitable contributions directly rather than through an intermediary and beware of organizations with copycat names similar to reputable charities. 
• Always get tracking numbers for items you buy online, so you can make sure you can follow the delivery process. Track your order through your original confirmation email. 

What to do if you are a victim:

•  Contact your financial institution immediately upon suspecting or discovering a fraudulent transfer.
•  If you believe you have been the victim of a scam, please report it to the FBI at IC3.gov or contact the FBI San Francisco Field Office at 415-553-7400.