Holiday scams and insurance risks

LANSING, Mich. — The holiday season brings a rush of online shopping, travel and charitable giving — and with it, more opportunities for scammers to take advantage of busy consumers.

The Michigan Department of Insurance and Financial Services is warning Michiganders that financial fraud, package theft and travel disruptions tend to spike during the holidays.

“From travel delays to package theft, the holidays often bring unexpected challenges,” said DIFS Director Anita Fox. “Understanding your insurance coverage, protecting yourself from scams, and knowing where to turn for help can make all the difference.”

According to DIFS, scammers often rely on urgency and emotion — especially when people are juggling gifts, travel and charitable donations.

One of the most common red flags is being asked to make payments using gift cards or peer-to-peer payment apps.

“Gift cards are for gifts — not for paying taxes, fees, or other costs a scammer may ask you to pay,” Fox said. She added that once money is sent through gift cards or payment apps, it is often impossible to recover.

Package theft increases with online shopping

With more deliveries arriving at doorsteps, DIFS says package theft also becomes more common.

Some homeowners or renters insurance policies may cover stolen deliveries, but coverage varies. Before filing a claim, consumers should first contact the shipping company, which may offer a refund or replacement.

To help reduce the risk:

• Require a signature for high-value deliveries
• Track packages closely
• Understand your policies going into the holidays

“Knowing what your policy covers before something goes wrong can save consumers stress later,” Fox said.

Travel and weather can disrupt holiday plans

Michigan’s winter weather can delay flights and cause road accidents.

DIFS recommends reviewing auto and travel insurance before heading out. Some policies may include:

• Roadside assistance
• Rental car reimbursement
• Coverage for trip cancellations or lost luggage
  

  Traffic moves along in Livonia, Mich., in this image from Nov. 20, 2025. (Spectrum News/ Melanie Tolen)

Fire risks rise in the winter

Holiday decorations, cooking, and candles can increase the risk of fires or property damage.

DIFS urges residents to:

• Keep decorations away from heat sources
• Never leave candles or food unattended
• Review homeowners or renters insurance for fire, smoke, or water damage coverage

Questions? Consumers with insurance or financial questions can contact DIFS Monday through Friday, 8 a.m. to 5 p.m., at 877-999-6442 or get help here.