The holiday season is about to ramp up with black-friday and cyber monday about a month away. Holiday shopping online offers great convenience, but as the season ramps up, so do online fraud risks.
According to a study from McAfee, 1 of 3 Americans have fallen victim to an online scam during the holiday season. This can lead to significant financial losses and even identity theft. So how can you protect yourself? We’ll cover the best ways to keep your money and personal information safe this holiday season.
Recognizing the red flags
Staying alert is your first line of defense against online holiday fraud and identity theft. Scammers often try to trick you through various methods, but if you know what to look for you can spot the red flags before it’s too late.
Phishing attempts: emails, texts, and calls
Phishing happens when scammers impersonate real businesses or people to steal your personal information. Around the holidays, be on the lookout for fake emails, texts, or calls disguised as order confirmations, shipping notifications, or urgent alerts. Key warning signs include unusual email addresses, grammatical errors, language that pressures you to act quickly, and any request for sensitive details like passwords or credit card numbers.
Fake websites and online stores
Criminals can create convincing fake websites that look just like real retailers. Be cautious of unusual website addresses (URLs), unprofessional or poorly designed pages, a lack of clear contact information, and deals that seem too-good-to-be-true.
Social media scams
Social media platforms become hotbeds for scams during the holidays. Be wary of fake ads, unbelievable giveaways, and direct messages asking for personal information or urging you to click on unfamiliar links.
Payment request red flags
Legitimate online stores will typically offer standard payment options. Be suspicious of requests to pay with gift cards, wire transfers, or other unusual methods, especially for online purchases.
How to shop smart and stay safe
Being aware and following a few simple steps can help protect you from scams and enjoy your shopping. Here’s a few things you can do:
Use strong, unique passwords & extra security (2FA)
Use tricky passwords with letters, numbers, and symbols for each account. Turn on two-factor authentication (2FA) whenever you can – it’s like adding a second lock. Password manager apps can help.
Secure your home Wi-Fi & update devices
Protect your home internet with a good password and keep your router, phone, and computer software updated for the latest security fixes. Avoid shopping on public Wi-Fi.
Check website security & shop at trusted stores
Before entering info, look for “https://” and a lock icon in the website address. Stick to well-known online stores or ones you trust. Be wary of unfamiliar sites, unbelievably low prices, and requests for unusual payment methods like gift cards or wire transfers.
Know return policies & consider skipping saved payment info
Understand the store’s return rules before buying. If you’re concerned, don’t save your payment details on websites. Paying with credit cards or trusted payment services is generally safer.
What to do if you suspect fraud
Even with the best precautions, you might suspect you’ve been a victim of online fraud. Here’s what to do right away:
Contact your financial institution immediately
If you think your credit card, debit card, or bank account information has been compromised, contact your bank or credit card company right away. They can take steps to secure your account, cancel cards, and advise you on the next steps. Prompt action can limit potential financial losses.
Change affected passwords
If you suspect a scammer might have your login information for any online accounts (shopping sites, email, social media, etc.), change your passwords immediately. Choose strong, unique passwords as discussed earlier.
Report the incident
It’s important to report the suspected fraud to the appropriate authorities. In the United States, you can report online scams and fraud to the Federal Trade Commission (FTC) at ReportFraud.ftc.gov. Depending on the nature of the fraud, you might also consider reporting it to your local police department or state consumer protection agency. Providing details about the incident can help authorities track and potentially prevent future scams.
Keep records of all communication and transactions
Gather and save any emails, text messages, website links, transaction details, and any other communication related to the suspected fraud. This information can be valuable when you contact your financial institution and when you file a report with the authorities. Keep screenshots and notes of any phone conversations as well.
Final thoughts
Remember that a little awareness goes a long way in safeguarding your digital well-being. Take a moment before each click, each purchase, and each shared piece of information to ask yourself if it feels right and if you truly trust the source. Your vigilance is the most valuable gift you can give yourself this holiday season, allowing you to focus on what truly matters: connecting with loved ones and enjoying the spirit of giving. Shop smart, stay safe, and have a wonderful holiday season.
