The holiday season is upon us, and with it comes the rush for online shopping deals. However, recent reports reveal that nearly 48% of holiday shoppers have fallen victim to online scams, resulting in lost money, compromised personal information, and, for some, the stress of trying to resolve issues with their bank or credit card provider. As more people rely on the convenience of online shopping, cyber criminals are capitalising on the increased activity to trick consumers into scams. Knowing what to watch for this holiday season is essential to protect yourself and enjoy a worry-free shopping experience.
Why Are Scams So Common During the Holidays?
The holiday shopping period is prime time for cyber criminals, who take advantage of shoppers’ eagerness to find deals, often creating a sense of urgency with limited-time offers or special discounts. Many online scams are crafted to look like real promotions, mimicking well-known brands and retailers to gain shoppers’ trust. Scammers also know that consumers are often busy or distracted, making them more likely to overlook small details that could indicate fraud.
Common Holiday Shopping Scams to Be Aware Of
Here are some of the most prevalent scams that can catch shoppers off guard during the holiday season:
Fake Online Stores - Fraudsters create convincing websites that look like legitimate online stores but are actually designed to steal your money and personal information. These sites often offer popular products at drastically reduced prices to lure shoppers. After you’ve paid, you either receive a counterfeit item or nothing at all.
Phishing Emails and Texts - Phishing messages are a common tactic during the holidays. Scammers send emails or texts that appear to be from reputable retailers, offering special discounts or alerts about account issues. These messages usually contain links to fake websites that prompt you to enter your login or payment details, which the scammers then use for fraudulent purposes.
Gift Card Scams - Gift cards are a popular holiday present, but they’re also a favourite tool for scammers. Fraudsters may sell fake or tampered gift cards, or they may trick people into paying with gift cards instead of credit cards. Once you’ve shared a gift card code with a scammer, it’s nearly impossible to recover the funds.
Social Media Ads and Giveaways - Social media platforms are often flooded with adverts and giveaways during the holiday season, some of which are scams designed to collect personal information or direct you to fraudulent websites. Be cautious of “too good to be true” offers and always verify the legitimacy of social media ads.
Delivery Scams - Delivery scams involve fake notifications, often sent via text or email, claiming there’s an issue with your package. The link provided typically directs you to a website that requests personal or financial information under the guise of resolving a delivery issue. With so many packages expected during the holidays, it’s easy to see how shoppers could fall for these scams.
How to Stay Safe While Shopping Online
With these scams in mind, here are some practical steps to help you stay safe while shopping online this holiday season:
Shop Only on Trusted Websites - Stick to well-known retailers and be wary of unfamiliar websites offering unbeatable deals. If you’re considering shopping from a new website, look for customer reviews, verify their contact information, and check that the site has secure encryption (indicated by a padlock symbol in the address bar and “https” in the URL).
Be Wary of Unsolicited Emails and Links - Avoid clicking on links in unsolicited emails or texts, even if the sender appears legitimate. Instead, go directly to the retailer’s website by typing the address into your browser. This helps you avoid phishing scams that redirect you to fraudulent sites.
Verify Social Media Ads and Giveaways - If you come across a social media ad or giveaway that seems appealing, check the retailer’s official page or website before engaging. Scammers often use fake accounts to promote fraudulent offers, so be cautious with any ad that doesn’t come directly from a verified source.
Use Credit Cards or Secure Payment Methods - Paying by credit card offers more protection than a debit card, as most credit card companies offer fraud protection. Alternatively, use a secure payment service like PayPal, which adds an extra layer of protection between your bank account and the retailer.
Enable Two-Factor Authentication (2FA) - Many online retailers now offer two-factor authentication, which adds a security layer by requiring a second form of verification before accessing your account. Enabling 2FA on your online accounts can make it harder for scammers to access your information, even if they get hold of your login details.
Monitor Your Bank Statements - Keep a close eye on your bank and credit card statements during the holiday season. If you notice any suspicious transactions, report them to your bank immediately to help mitigate potential losses and prevent further fraudulent activity.
What to Do If You’ve Been Scammed
If you think you’ve fallen victim to an online scam, it’s crucial to act quickly:
Report the Scam to Your Bank: Contact your bank or credit card provider immediately to report any unauthorised transactions. They can often help you stop payments or issue a new card if your information has been compromised.
Change Your Passwords: If a scammer has access to one of your accounts, change the passwords to all your online accounts to prevent further access. Use strong, unique passwords for each account and consider using a password manager to keep them secure.
Report the Scam to Action Fraud: In the UK, Action Fraud is the national centre for fraud and cybercrime reporting. Reporting scams helps authorities track and address fraud, potentially preventing others from being targeted.
A Safer Shopping Season for All
While the holidays are a time of joy and celebration, they’re also a time when scams are most prevalent. By being vigilant, using secure shopping practices, and knowing what to look out for, you can enjoy the convenience of online shopping without falling prey to fraud.