How to protect against delivery scams, package thefts this holiday season

CHARLOTTE — The Better Business Bureau has released several guides to help consumers avoid the microchip shortage, delivery scams and package theft, hot toy scams, fake deals on gaming consoles, and “Secret Sister/Santa” gift exchanges.

How to Not Let The Microchip Shortage Ruin Your Holiday Shopping

The pandemic has caused a microchip shortage and supply chain issues so electronics, toys, and other products will be in short supply. Supply shortages, in turn, result in fewer holiday bargains and higher than normal prices. This means that sticking to your budget and buying all the gifts on your list will be harder than usual. To make a success of your holiday shopping this year despite the challenges, the BBB recommends the following tips.

• Know what products stores might run out of. Millions of everyday products use microchips to function. Computers, gaming systems, smart appliances, cameras, and toys that feature light, sound, motion, or any kind of tech all use microchips, meaning many manufacturers are already struggling to keep up with the demand for their products. Think through your holiday list and identify must-haves that are impacted by the shortage.
• Start shopping earlier than usual. Don’t wait until the last minute to start holiday shopping this year. Certain products may already be sold out by late November, according to some retailers.
• When you find a good deal, don’t wait to buy. Good deals will be harder to find this year, so if you find a product in stock at a good price, take advantage right away. Budget your holiday shopping without expecting sales. Supply chain problems mean many retailers have had to pay more than usual for inventory and can’t offer the same bargain prices they did last year. In fact, many products that use microchips have already gone up in price, so plan your budget accordingly.
• Have a backup plan. Because so many household items use microchip technology, some retailers already have products backordered into 2022. Try to stay flexible this year. If you absolutely can’t get a gift you had in mind, you may need a Plan B. For example, if the toy you wanted for your kids is not available or too expensive, keep in mind that the present shortages only affect certain kinds of gifts. Plush toys, outdoor toys, and action figures sans electronic features should stay in stock and reasonably priced this year.
• Watch out for scams. Whenever a product is in high demand like the hottest toy of the holiday season, scammers try to take advantage of consumers. Remember, deals that sound too good to be true probably are. In addition, keep an eye out for sketchy sellers that may be selling counterfeit products. Finally, always research vendors you are unfamiliar with to make sure you’re dealing with a legitimate business before you make a purchase or give them your personal information, such as your credit card number.

How to Avoid Delivery Scams and Package Theft

Some consumers have reported that they have received text messages stating a major delivery carrier needs them to “update delivery preferences” on a package by clicking on a link. The problem? The text is a scam, and the link results in the theft of personal information. With millions of packages being delivered each year, con artists and thieves have developed many ways to steal from shoppers. Here are some tips to help you protect yourself from their shady tactics.

• The first scam to look out for are phishing texts or emails that pose as official notices from delivery companies. These either contain a “tracking link” or a message that the shipper is having difficulty delivering a package to you, or most recently, a link to update delivery preferences. Clicking the link either takes you to a form that asks for personally identifying information, or to a site that downloads malware onto your computer.
• Another delivery scam involves fake “missed delivery” tags. Scammers place a note on your door that claims they are having challenges delivering a package to you. They ask you to call a phone number to reschedule your delivery, but it’s really a ruse to get your personal information.
• Another issue shoppers face is package theft. Many consumers have had their packages stolen before they arrive home from work. Thieves snatch packages from doorsteps or lobbies of apartment or condo complexes. Criminals even follow delivery and postal trucks. When the truck leaves, the crooks move in and grab the parcels.
• Take precautions to ensure a safe delivery. If you are having a valuable or fragile item delivered to your home, purchase shipping insurance. In addition, always get tracking numbers for your purchases and check the shipping progress periodically.
• Watch out for texts, calls or emails about a missed delivery. Legitimate delivery services usually leave a “missed delivery” notice on your door. If you receive a missed delivery notice, examine the form carefully to make sure it is authentic and only then follow their instructions. Keep track of what you’ve ordered so you have a better idea of what is coming and when. Don’t click on any links; go to the delivery carrier’s website directly, or log in and use the retailer’s tracking tools.
• Request a Signature. Chances are this feature may come with a price tag, but it may be worth the extra fee. Requesting a signature means that a delivery service won’t be able to drop a package on your doorstep unless someone is around to sign for it.
• Don’t leave packages sitting on your doorstep. Packages left sitting outside are particularly vulnerable to theft. To ensure safe delivery, have your package delivered to your workplace, or to a trusted friend or neighbor who will be home to accept delivery. Some delivery companies now have lockers where your packages can securely wait for you to pick them up using a one-time code to open the locker.
• Open your delivery upon receipt to check for damage or signs of tampering. Contact the seller immediately if you believe something is wrong with the shipment or if it’s not what you ordered. Also, be sure to review the seller’s return policy for damaged or unwanted items.

How to Be On The Lookout For Hot Toy Scams

Every year, there are always a few “must-have” toys on most kids’ holiday wish lists. The toy sells out fast and becomes expensive and hard to find. This year’s hot picks, according to Amazon include Galactic Snackin’ Grogu Animatronic (aka Baby Yoda); game consoles, such as Nintendo Switch and Playstation; LEGO; and L.O.L. Surprise dolls. Here’s how scammers are using the toys’ popularity to trick parents out of their money and how you can avoid them.

• You are looking for these toys, but they are sold out at every store you visit. So you decide to look online. A quick search takes you to a page that miraculously has the toy in stock. The site may look professional and have original images of the product. It may even offer the product at discounted prices, claiming a “last-minute deal” or “flash sale.”
• Unfortunately, many such offers are fake. In many cases reported to BBB.org/ScamTracker, buyers thought they were ordering a high-quality, animatronic toy. Instead, they received a cheap counterfeit version. In other cases, the products never shipped at all and the websites vanished. In either case, when the dissatisfied customers tried to follow up with the company, they found that the staff either didn’t respond or refused to provide a refund.
• For example, one shopper told BBB Scam Tracker that they fell for a phony deal on gaming consoles: “I was online searching for an in-stock Nintendo Switch OLED. The Nintendo site did not have any in stock. I searched on Google for Nintendo Switch OLED and found a site for $99.99. I thought wow that is cheap, and let’s go for it! I also bought a PlayStation 5 for the same price with a different email (since only one promotional item per email). They emailed me a confirmation and it said to wait 24 to 48 hours for shipping information. I go to check today on order status and they took their website down. I tried emailing them and the email just returns back to me undeliverable.”
• Another shopper found what they thought was a great deal on LEGO, but the product never shipped. “The product NEVER arrived, even though they gave me the run-around for three months saying it was on the way,” the consumer told BBB Scam Tracker. “I checked the tracking number they gave me with the USPS, and they didn’t have anything with that number ever. It was a fake to begin with.”
• Only buy toys from reputable stores and websites. The best way to avoid getting scammed when purchasing toys is to buy them directly from a seller you know and trust.
• Don’t be fooled by extra-low prices. Unreasonably low prices are a red flag for a scam on many products. Avoid making a purchase from a retailer you aren’t familiar with just because the price sounds too good to be true – it probably is!
• Research before you buy. If a company seems legitimate but you aren’t familiar with it, be extra careful with your personal information. Before offering up your name, address, and credit card information, make sure the company has a working customer service number.

How to Avoid Fake Deals on Gaming Consoles

With many people shopping for gifts on a budget this holiday season, scammers are taking advantage of the demand for gaming consoles by promoting fake deals on Nintendo Switch, PlayStation 4 PRO, and the new PlayStation 5. Here’s how consumers can use caution when buying a console online.

• Research the company you plan to purchase from thoroughly. It’s best to purchase items from sellers you already know and trust, but if you decide to purchase from an unfamiliar online store, do your homework first. Read as many customer reviews as you can find, look up the business on bbb.org, and do an online search with the company’s name followed by the word “scam” to see if you find any complaints. Make sure the company has legitimate customer service contact information (not just a form you have to fill out and hope for a response) and clear return and refund policies as well.
• Avoid impulse buying. Scammers like to draw people in with “flash sales” and “limited time offers” in hopes you will hand over your money on impulse. Resist the urge.
• Don’t believe prices that are too good to be true. Before you start shopping, find out the price of the gaming console at a major retailer. You can check prices online to get a general idea of what the console is selling for. Keep that price in mind as you shop and be wary of sellers who offer the product at a steeply discounted price. You could end up spending money on a defective or counterfeit product, or no product at all!

How to avoid “Secret Sister/Santa” Gift Exchanges

A “Secret Santa” around the office or with friends and family can be fun, however, a gift exchange among online friends you haven’t met is a little different. While these gift exchanges look like innocent fun, some are really pyramid schemes.

The “Secret Sister” gift exchange campaign quickly became popular several years ago through Facebook posts promising participants would receive up to 36 gifts, in exchange for sending one gift. A newer version of this scam revolves around exchanging bottles of wine; another suggests purchasing $10 gifts online.

The next time someone promises a bounty of gifts or cash by mail, email, or social media, the BBB recommends the following tips.

• Ignore it! Keep in mind that pyramid schemes are international. Chain letters involving money or valuable items that promise big returns are illegal. Stop and ask, is it worth breaking the law? Report it instead to the U.S. Postal Inspection Services.
• Report social media posts. If you receive an invitation to join a pyramid scheme on social media, report it. You can report these Facebook posts by clicking in the upper righthand corner and selecting “Report post” or “report photo.”
• Never give your personal information to strangers. This will open you up to identity theft and other scams.
• Be wary of false claims. Some pyramid schemes try to win your confidence by claiming they’re legal and endorsed by the government. These imposter schemes are false as the government will never endorse illegal activity. No matter what they claim, pyramid schemes will not make you rich. You will receive little to no money back on your “investment” or gift exchange.

(WATCH BELOW: BBB alerts about holiday scams)

BBB alerts about holiday scams (NCD)

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