Don't let online grinches scam you this year, Better Business Bureau warns

CHICAGO (WLS) -- 'Tis the season for all your holiday shopping. But it's also a prime time for scams as online grinches look to steal your holiday spirit.

So, before you clear your cart and confirm your purchase, be wary of several holiday scams. Steve Bernas, president and CEO of the Better Business Bureau visited ABC 7, with a warning about some of the top holiday scams this year:

1. Misleading social media ads: You often see products advertised on your social media feed. Always research before you buy. BBB Scam Tracker receives daily reports of people paying for items they never receive, getting charged monthly for a free trial they never signed up for, or receiving an item that is counterfeit or much different from the one advertised. Before ordering, check out the business profile on BBB.org and read the reviews.

2. Social media gift exchanges: This scheme pops back up each holiday season, and this year is no different. The older version was called "Secret Sister." A newer version of this scam revolves around exchanging bottles of wine; another suggests purchasing $10 gifts online. Another twist asks you to submit your email to a list where participants get to pick a name and send money to strangers to "pay it forward." In all of these versions, participants unwittingly share their personal information and those of their family members and friends, and are tricked into buying and shipping gifts or money to unknown individuals. And-- it's an illegal pyramid scheme. Stick to buying your friends gifts from trustworthy businesses.

3. Holiday apps: Apple's App Store and Google Play list dozens of holiday-themed apps where children can video chat live with Santa, light the menorah, watch Santa feed live reindeer, track his sleigh on Christmas Eve, or relay their holiday wish lists. Review privacy policies to see what information will be collected. Be wary of free apps, as they sometimes contain more advertising than apps that require a nominal fee. Free apps can also contain malware. Be sure to read reviews as well.

4. Fake texts that say you've been hacked: BBB receives tons of reports on Scam Tracker about fake texts and emails, many of them claiming your Amazon, PayPal, Netflix, or bank account has been compromised. Victims are told there has been suspicious activity on one of their accounts, and it further urges them to take immediate action to prevent the account from being compromised. Be extra cautious about unsolicited calls, emails, and texts; contact the business directly, and don't click on any links.

5. Free gift cards: Nothing brings good cheer like the word "FREE." Scammers have been known to take advantage of this weakness by sending bulk phishing emails requesting personal information to receive free gift cards. In some of these emails, scammers impersonate legitimate companies and promise gift cards to reward their loyal customers. They may also use pop-up ads or send text messages with links saying you were randomly selected as the prize winner. If you have received an unsolicited email with gift card offers, do not open it. Instead, mark it as spam or junk. However, if you opened the email, do not click on any links.

6. Temporary holiday jobs: Retailers typically hire seasonal workers to help meet the demands of holiday shoppers. Shippers and delivery services are top holiday employers this year because of the increase in online orders and the need to deliver most of these packages before Christmas. These jobs are a great way to make extra money, sometimes with the possibility of turning it into a long-term employment opportunity. However, job seekers need to be wary of employment scams aimed at stealing money and personal information from job applicants. Keep an eye out for opportunities that seem too good to be true.

7. Look-alike websites: The holiday season brings endless emails offering deals, sales, and bargains. Be wary of emails with links enclosed. Some may lead to look-alike websites created by scammers to trick people into downloading malware, making dead-end purchases, and sharing private information. If you are uncertain about the email, do not click any of the links. Instead, hover over them to see where they reroute. Go directly to the official website; you can check their listing on BBB.org/search to verify you have the right one.

8. Fake charities: The last few weeks of the year is a busy time for charitable donations. Donors are advised to look out for fraudulent charities and scammers pretending to be needy individuals. Avoid impromptu donation decisions to unfamiliar organizations. Responsible organizations will welcome a gift tomorrow as much as they do today. Verify a charity at BBB's Give.org. Where possible, please donate to the charity through their website and use a credit card.

9. Fake shipping notifications: More consumers are making purchases online, and there is also an increase in the number of notifications about shipping details from retailers and carriers. Scammers are using this new surge to send phishing emails with links enclosed that may allow unwanted access to your private information or download malware onto your device. They may also try to trick people into paying new shipping fees.

11. Top holiday wish list items: Low-priced luxury goods, jewelry, designer clothing, and electronics are almost always cheap counterfeits and knockoffs. The same applies to popular toys.

12. Puppy scams: Many families may consider adding a furry friend to their household this year. However, be on the lookout for scams. Many would-be pet owners turn to the internet to find their future cat or dog, but experts say a shocking 80% of sponsored pet advertisements may be fake. Be sure to see the pet in person before making a purchase.

For more information

If you've encountered a scam, report it to BBB Scam Tracker. Sign up for BBB's free consumer newsletter, BBB Edge, at BBB.org/ChicagoBuzz. Visit BBB.org or follow us @ChicagoBBB on social media. Look for the BBB seal, The Sign of a Better Business.