Beware of Package Scams

Porch pirates aren’t the only thieves trying to pilfer your hard-earned money when you place an online order. Package scammers are, too. Here’s how you can beware of package scams.

Question: Are these offers from companies to insure you against stolen packages legit?

Answer: As the holiday shopping season kicks off, consumers should be wary of package scams, companies that claim they can provide insurance against lost, damaged, or stolen packages. In many cases, these companies fail to deliver on their promises, according to a consumer alert from the National Association of Insurance Commissioners.

To get around state licensing requirements for insurance providers, these companies and individuals often claim their products are warranties, guarantees, or protection plans, the NAIC says. The association adds that because these entities are unlicensed, state insurance regulators may not be able to help consumers who are defrauded by the package scams.

Before buying package protection coverage, make sure the company is licensed. You can search for licensed companies at the NAIC’s consumer insurance search page .

Keep in mind that your homeowners or renters insurance policy may cover stolen packages, making additional insurance unnecessary. You can also take steps to thwart porch pirates, such as by tracking your packages — all the major delivery services offer this option — or having packages delivered to a secure locker or other secure location.

Sandra Block is a senior editor at Kiplinger Personal Finance magazine and Elaine Silvestrini is a senior editor at Kiplinger Retirement Report. For more on this and similar money topics, visit Kiplinger.com.

©2024 The Kiplinger Washington Editors, Inc. Distributed by Tribune Content Agency, LLC.

Could you be the victim of a scam? Read more about staying safe from shysters, including a link to an astonishing YouTube video, “Glitterbomb Trap Catches Phone Scammer,” which sheds light on several tricks used in a common con game and on how to identify a scammer. YouTuber Mark Rober, engineer and advocate, collaborated with law enforcement to track scammers and retrieve $30,000 for two senior women. Rober’s video of the sting is gratifying, seeing criminals caught in the act. And it’s instructive on how to avoid a scammer, illuminating how the shysters manipulated their marks. Find the details here.

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