Office of Consumer Protection

DEPARTMENT OF COMMERCE AND CONSUMER AFFAIRS
KA ʻOIHANA PILI KĀLEPA

JOSH GREEN, M.D.
GOVERNOR | KE KIAʻĀINA

NADINE Y. ANDO
DIRECTOR | KA LUNA HOʻOKELE

MANA MORIARTY
EXECUTIVE DIRECTOR, OFFICE OF CONSUMER PROTECTION

FOR IMMEDIATE RELEASE
December 7, 2023

TIPS TO AVOID HOLIDAY SHOPPING SCAMS

HONOLULU – With the holiday shopping season upon us, the Department of Commerce and Consumers Affairs Office of Consumer Protection is cautioning consumers to beware of scams and deceptive advertising while shopping at stores and online.

“Consumers should refrain from sharing personal details during a transaction unless absolutely certain about the recipient, and avoid patronizing businesses that demand payment using unusual payment methods,” said Mana Moriarty, Executive Director of the Office of Consumer Protection.

The Office of Consumer Protection offers consumers a few additional tips to avoid getting scammed this holiday season:

• Gift Cards: Beware of gift cards that have been tampered with. Avoid buying in-store racked cards with easily accessible numbers and PINs. If you buy in a retail store, look for gift cards kept behind the counter or in well-sealed packaging. If possible, change the security code as soon as you buy the card and change the PIN and register the card when you get home.
• Online Coupons: Be careful when clicking on online coupons. Scam sites tempt consumers to click on online coupons for the sole purpose of obtaining personal information.
• Look-alike Websites: Consumers will see an increase in mailers and email alerts announcing deals, gifts, and sales. Although the mailers and email alerts may look like they are from legitimate businesses, the links may lead to look-alike websites that are set up to trick you into providing personal information or to allow identity thieves to download malware onto your computer. Carefully read website addresses to ensure you are shopping on a legitimate website.
• Bait and Switch: Some stores may advertise goods at low prices, but when you get to the store, the price may be higher than advertised, or the product might not be available. The best way to ensure you get the advertised price is to bring a copy of the ad when you shop in the store.
• Check the Charity: Be cautious of unsolicited phone calls, emails, and texts looking for donations. Before donating to a charity, make sure you know exactly where your money will go – and how much will be going to administrative fees. Verify the organization through the Hawaiʻi Attorney General Charity Search or Charity Navigator.
• Security Certificates for Online Shopping Websites: To ensure you are shopping on a secure website, check that the website begins with “https” and has a small padlock icon next to the webpage address. Keep your computer, tablet, and smartphone operating systems up-to-date and install security software.
• Unusual Forms of Payments: Legitimate online merchants will rarely if ever request payment by wire transfers, prepaid debit or gift cards, peer-to-peer mobile payment apps, or third parties. Be wary of anyone asking for these forms of payment as they often cannot be traced and undone.
• Use Your Credit Card: With a credit card, you’ll pay at most $50 in the event of fraudulent transactions. Credit card protection services include dispute rights if something goes wrong with the merchandise or the purchase.
• Buy Now, Pay Later Plans.  Buy now, pay later plans might charge you low or no interest, and offer you a way to pay without using a credit or debit card. But that doesn’t mean the plans are risk-free. Many plans charge high late fees, per-transaction fees, or change fees, among others. When you use a buy now, pay later plan, you might not have the same protections you would if you paid with a credit or debit card. For example, the credit card protections for disputing a payment may not apply. Also, some plan providers may report your payment history to the three nationwide credit bureaus, so if you pay late or miss a payment, it could hurt your credit score.
• Fake Shipping Notifications: If you shop online, you can expect delivery notifications throughout the holiday season. Phishing scams may use a legitimate business’ name and logo to trick you into opening a fake email shipping notification to gain access to your personal information and passwords. Remember that delivery services do not require you to provide personal information or pay money to deliver your packages. Scammers take advantage of the busy time by sending convincing phishing emails appearing to be from UPS, FedEx, and the USPS.
• Fake Social Media Giveaways: One in four people who reported fraud losses since 2021 cited social media as the starting point for scams. Scammers often exploit legitimate businesses’ promotional giveaways, making distinguishing between real and fake giveaway offers challenging. Avoid clicking on links to prevent potential malware. Verify the legitimacy of requests for sensitive information. If in doubt, contact the business through a known phone number, email, or website to confirm the message’s authenticity.
• Grandparent Scams: Scammers text or email posing as a grandchild in trouble and ask for money — usually through wire transfers or gift cards. According to the FBI, elder fraud costs victims $3 billion in yearly losses. Consider a family identity theft protection plan with credit monitoring for added peace of mind.
• Holiday Travel and Online Airfare Scams: Beware of holiday season airline ticket scams, including fake booking sites, fraudulent cancellation emails, and price hikes. Safeguard yourself by purchasing tickets directly from the airline or reputable third-party sellers, and verify the legitimacy of any messages by contacting the airline directly.

It is also important to note that gift certificates, whether received for birthdays or holidays, come with legal protections. The gift certificate law requires restaurants and retailers to honor gift certificates for at least two years (for paper) or five years (for electronic or other forms). Expiration dates must be indicated, and service fees are prohibited. Since January 1, 2020, issuers must refund the remaining value in cash if it’s below $5.00. However, the law excludes certain vouchers, like those sold at a discount, for telephone services or not marketed as gift certificates. It also doesn’t cover cards solely for event admission. It applies only to certificates for which the issuer has received payment for the full face value.

Consumers who believe they have been a victim of a holiday shopping scam can file a complaint with the Office of Consumer Protection at (808) 587-4272 or https://cca.hawaii.gov/ocp/consumer-complaint/.

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Media Contact:
William Nhieu
Communications Officer
Department of Commerce and Consumer Affairs
Email: [email protected]
Phone: (808) 586-7582