Avoid In-Store and Online Holiday Shopping Scams

Nov. 30, 2010 — -- The federal government is cracking down on illegal shopping websites -- just in time for the holiday season.

The government announced Monday it had seized and blocked 82 Websites that had been accused of selling counterfeit and pirated goods.

That's one thing you should watch out for. ShopSmart magazine has an article describing the sneakiest new shopping scams.

Click HERE for web-extra tips to keep your finances safe while you shop.

Here are the scams you should watch out for, along with solutions to keep your finances safe.

Scam No. 1: Stripped gift cards.

Thieves look for gift cards displayed on grab-and-go racks at stores. They can then read the code on the back of the card -- underneath the scratch-off strip -- using a handheld scanner.

The Solution: Buy cards that are behind the customer service desk.

Scam No. 2: Unwanted membership programs.

You're shopping online and just before you hit "confirm," there's a pop-up ad with an offer of money back on your next purchase if you join. If you get confused and hit the wrong confirm button, you're automatically enrolled in a pricey membership program.

The Solution: Beware of pop-up windows as you complete your transactions.

Scam No. 3: Tiny unauthorized charges.

These are charges of a few cents that show up on your credit card bill. If you try to call the 800 number next to the charge, nobody answers. The Federal Trade Commission broke up a crime ring in June that racked up more than $10 million this way.

The Solution: Scrutinize every item on your bill.

Scam No. 4: Skimmers that text.

You've heard of skimmers, which capture your credit or debit card information. Well, the thief used to have to go back to the ATM or gas pump to retrieve the skimming device. But now they can rig the device to send your information to them via text message.

The Solution: Pay by credit card rather than debit card so you're not risking your own money. Debit cards offer protection, too, but it can take a couple of days to straighten it out.