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Last-Minute Shoppers Prime Targets for Holiday Fraud; How To Stay Safe

Last-minute holiday shoppers are vulnerable to fraud schemes. Crooks capitalize on procrastination, enticing shoppers with offers that may lead to unauthorized transactions.

BY SAHIB PREET SINGH

PUBLISHED DEC 25, 2023

People shop in Macy's department store | Getty Images | Photo by Mario Tama

Procrastination Plays into the Hands of Crooks, Visa Chief Risk Officer Warns

People walk past a Topshop and Topman store on Oxford Street | Getty Images | Photo by Scott Barbour

In the rush of last-minute holiday shopping, consumers are at an increased risk of falling victim to fraud, according to Paul Fabara, Chief Risk Officer at Visa. Crooks exploit procrastination, counting on shoppers to succumb to enticing last-minute offers, which could result in unauthorized transactions and unfulfilled orders.

Visa Highlights Five Security Measures to Safeguard Shoppers

To mitigate fraud risks during the holiday season, Visa recommends five essential security practices for online shoppers:

Avoid Public Wi-Fi: Shopping on unsecured public Wi-Fi networks increases the likelihood of personal information theft.

Use Secure Websites: Verify that a website begins with "https://" to ensure encrypted data transmission and a secure connection.

Research Online Retailers: Conduct a background check on unfamiliar online retailers to verify legitimacy. Check customer reviews and satisfaction ratings. Even for well-known brands, ensuring customer feedback and satisfaction is crucial.

Protect Your Accounts: Utilize strong and unique passwords for bank accounts, credit cards, and online retailer accounts. Implement two-factor authentication for an added layer of security.

Beware of Unrealistic Deals: Exercise caution when encountering seemingly too-good-to-be-true offers, especially on sold-out items with expedited shipping. Scams often target unsuspecting consumers seeking popular items.

A woman carries shopping bags two days before Christmas | Getty Images | Photo by Sean Gallup

Recognizing Scams: How to Spot Deceptive Offers

Visa emphasizes the importance of scrutinizing online deals, especially those appearing too good to be true. Melanie McGovern, spokeswoman for the International Association of Better Business Bureaus, warns consumers to be cautious about ads on social media offering popular items at unusually low prices, especially when the items are sold out elsewhere. If in doubt, it is advised to pause and thoroughly investigate before making a purchase.

Responding to Scams: Immediate Steps for Consumers

In case of falling victim to a scam, experts recommend prompt action. The first step is to contact the bank, credit card company, or financial institution to report the compromise of personal information. Quick reporting enhances the chances of preventing unauthorized transactions and mitigating potential financial losses.

As the holiday shopping season peaks, consumers are urged to remain vigilant and prioritize security to ensure a safe and enjoyable online shopping experience.