The holiday season is a time of joy and celebration, but it’s also prime hunting season for scammers. In 2024, the FBI has issued a warning to consumers about the growing risks of holiday-related fraud. With cybercriminals using increasingly sophisticated tactics and online shopping continuing to grow, more opportunities exist for fraudsters to exploit unsuspecting consumers than ever before.
Last week we looked at the real-world impact of Holiday Scams and the most common Holiday Scams and how they work. Now, here is advice on how to avoid the scams.
What The FBI Recommends The FBI’s advice to consumers is straightforward: vigilance is your best defense against holiday scams. Here is what the FBI recommends:
Verify Website URL Addresses Shoppers are urged to verify website URLs, ensuring it begins with "https" and includes a padlock icon in the address bar. When the FBI advises shoppers to check for "https" in website URLs and look for a padlock icon, they’re addressing a fundamental scam tactic: fake websites. These fraudulent sites are designed to look nearly identical to legitimate retailers, often with minor differences in the URL—like a misspelled brand name or an added character. The "https" and padlock symbol indicate a secure connection, which helps ensure that any data you enter, like payment information, is encrypted and harder for scammers to intercept. By independently typing the retailer’s URL into your browser instead of clicking links in emails or ads, you avoid the risk of being redirected to a convincing but fraudulent site.
Be Wary Of “Too Good To Be True” Deals The FBI’s warning about unrealistic discounts highlights how scammers play on the holiday rush and desire for bargains. Massive markdowns on high-demand items like gaming consoles or electronics can create a sense of urgency—“Act now before the deal ends!” This pressure often leads shoppers to skip basic precautions, like verifying the legitimacy of the seller. Scammers thrive on this impulsive behavior, collecting payments for goods that don’t exist. The advice to slow down and critically evaluate deals helps counteract the emotional manipulation scammers rely on.
Use Secure Payment Methods The FBI’s emphasis on using credit cards rather than gift cards or wire transfers reflects the protections built into credit card transactions. Credit cards allow consumers to dispute unauthorized charges and often provide fraud monitoring services. Conversely, payments made through gift cards or wire transfers are nearly impossible to recover once sent, which is why scammers frequently demand these methods. This advice ensures that, if something goes wrong, consumers have a safety net to recover their funds.
Verify Charities Before Donating Holiday generosity makes charitable giving a prime target for scammers. The FBI’s recommendation to check charities through tools like Charity Navigator or the Better Business Bureau addresses the prevalence of fake charity scams. Fraudsters exploit the goodwill of the season by creating organizations that mimic legitimate ones, often with names or logos that look authentic. By verifying the legitimacy of the charity, donors can ensure their contributions go to the intended cause rather than into the pockets of scammers. This advice also helps combat emotional manipulation, as fraudulent charities often use urgent, heart-wrenching appeals to elicit impulsive donations.
Monitor The Shipping Process The FBI advises holiday shoppers to carefully monitor the shipping process for their online purchases to avoid falling victim to scams or package theft. The holidays bring a surge in e-commerce activity, which scammers exploit through non-delivery scams and fake tracking information. By requesting and using tracking numbers, buyers can:
The FBI warns that sellers also need to safeguard their transactions, especially during the holidays when scams targeting sellers increase. Be cautious with purchases where the shipping address differs from the billing address on the credit card. These mismatches often indicate fraudulent activity, such as the use of stolen credit cards. Good practices for sellers include:
What To Do If You’ve Been Caught In A Holiday Scam If you suspect you’ve fallen victim to a scam, the FBI urges immediate action. Start by filing a report with the FBI’s Internet Crime Complaint Center, or IC3. Next, contact your bank or credit card provider to dispute fraudulent charges and secure your accounts. If sensitive personal information was stolen, consider placing a fraud alert or credit freeze on your credit file to prevent further misuse. The FTC also offers resources for reporting scams and recovering from identity theft. Reporting fraudulent activity not only helps authorities track down scammers but also prevents others from becoming victims.
The FBI’s 2024 holiday scam warning is a reminder that protecting yourself requires more than luck. It requires awareness and caution. The combination of increased online shopping, sophisticated scam tactics, and consumer distractions creates a perfect storm for fraud. By staying informed, verifying suspicious offers; and using secure payments methods, you can ensure a safer shopping experience this season.
(Partially reprinted from www.forbes.com)
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