Dec 4, 2020 4 min read

This year, more people are Christmas shopping online. This was already a growing trend, but the pandemic has increased the volume.

Now criminals are trying to steal your identity, using many different techniques to accomplish this. There are several that try to take advantage of your purchasing from Amazon.

I have received several e-mails claiming to be from Amazon, saying there is an issue with my account. They come from a generic e-mail address and ask me to respond to a link. These are phishing scams that try to get your passwords or banking info. Delete these e-mails and do not respond.

Getting people to clink links is one of the most common ways to spread a computer virus. Just log into your Amazon account to find out whether this is a real problem. Probably not.

This week, I received an e-mail saying that my order to send a $900 computer to some address in Austin, Texas, would be delivered tomorrow. This would cause great concern for some people because they did not place this order and you have no idea about the address that is scheduled to receive the order. This is another scam to get you to call and provide information. Check your order tab at Amazon and you will see this is not an order being charged to your account.

Another common scam is to get an e-mail saying there is a problem with your account at the bank. Often, this is a bank that you do not conduct business with.

Why would anyone respond to these e-mails? Some people might hope they inherited an account, or just hope they get a pleasant surprise. Do not answer or click any links.

Many seniors have received e-mails claiming to be the Social Security Administration. They often state that there is a problem with your SS account, and may threaten to suspend your account or demand some form of payment. SS will never do these things. I have even heard of cases in which a scammer knows the last four digits of your SS number. Sometimes, a scammer can even fool your caller ID to make it look official.

Call your local SS office to see whether there is an issue. Most of the time, there will not be anything wrong. If you are not sure, ask a trusted friend or relative to help you resolve the issue. Do not return unknown calls, texts or e-mails. Do not be embarrassed if you shared personal information or suffered a financial loss. Report it to authorities. You can learn more at oig.ssa.gov/scam.

Another area where people often lose money unexpectedly is through bank overdraft fees. According to a survey by Bankrate.com, the national average charge is $33.47. If you have multiple checks clear on the same day or recurring bills hit at the same time, you could be assessed many of these charges in one day. It has been estimated that up to one-third of all checking accounts overdraw at some time in a year. It is estimated that banks collect more than $30 billion in these fees each year!

There are some steps you can take to avoid these charges. Keep a more accurate balance of your account. Remember to account for any other fees or recurring bills. Banks are required to get your permission to charge and overdraft fee on your debit card.

According to Peter Smith at the Center for Responsible Lending, “You can opt out of these overdraft protection programs. Your debit card will just be declined if you try to make a purchase and your account does not have enough money in it.”

Stay in your budget and watch out for scams this holiday season and you will have less stress in your financial life.

Gary Boatman is a Monessen-based certified financial planner and the author of “Your Financial Compass: Safe passage through the turbulent waters of taxes, income planning and market volatility.”

To submit columns on financial planning or investing, email Rick Shrum at rshrum@observer-reporter.com.