Year after year, fraud continues to grow exponentially. Over 800,000 reports were received by the FBI’s Internet Crime Complaint Center (IC3) in 2022, representing $10.2 billion in potential total loss - a significant jump from the $6.9 billion reported in 2021.
Now that the holiday season is upon us, it’s prime time for fraudsters and scammers looking to take advantage of people’s generosity by exploiting the festive spirit for their own illicit financial gains. The FBI works to raise awareness of the types of scams that are common around the holidays and how you can protect yourself and your customers or members.
Understanding the Types of Threats
The first step in protecting yourself is understanding the threats. While not an exhaustive list, the FBI has identified several scams that tend to target individuals and their families around the holidays:
Online Shopping Scams
According to survey data published by Bankrate in September 2023, “39% of holiday shoppers plan to do most of their shopping online [this year].” The FBI warns consumers to be on the lookout for fake websites, counterfeit products, and phishing emails that appear to be coming from trusted retailers that consumers normally engage with. The FBI reports, “. . . victims end up paying for an item, while also giving away personal information and credit card details, then receive nothing in return except a compromised or stolen identity.”
Charity Scams
Scammers are aware of the “giving season” and will often create fake crowdfunding campaigns and charities to exploit people’s goodwill. The FBI reports, “Charity scam solicitations may come through cold calls, email campaigns, crowdfunding platforms, or fake social media accounts and websites. Perpetrators may divert some or all the funds for their personal use, and those most in need will never see the donations.” The Federal Trade Commission (FTC) offers tips to follow before making a financial donation to a charity this year.
Social Media Shopping Scams
There are nuances in the social media space that make fraud and deception alluring to fraudsters. Social media allows scammers to create paid ads to promote what appears to be legitimate products or services, but once you click on the ad it could bring you to a malicious website designed to steal payment information, like card numbers. Remember, if a deal seems too good to be true, it probably is. It’s also safest to browse directly to a retailer’s known website rather than clicking through an ad.
Additional Tips
Hot off the press, the U.S. Treasury Office of Cybersecurity and Critical Infrastructure Protection has released a Cyber Crime Advisory that highlights tips consumers can take to avoid becoming the victim of cyber or online scams this holiday shopping season, especially important as the rise of artificial intelligence (AI) has enabled cybercriminals to automate malicious phishing attacks.
What to Do if You Are a Victim
If you or someone you know falls victim to an online scam this holiday season, it’s important that the victim acts quickly to increase the chances of recovering any money that has been sent to a fraudster. If you work at a financial institution, consider sharing these tips with your customers or members.
The first thing you should do is contact your financial institution and let them know what happened. By reporting the issue in a timely manner, your financial institution may be able to stop the payment from being processed. If payment was made to a scammer using your debit or credit card, your financial institution can assist with canceling that card and issuing you a new one. If you made payment using your checking or savings account and routing number, your financial institution may encourage you to close your account and open a new one.
Next, if the crime has taken place over the Internet, you should report the activity to IC3 regardless of the dollar amount of the loss. The more information that is provided, the more useful it is to law enforcement.
ePayResources Can Help!
This holiday season, ePayResources wants you and your customers or members to be prepared and vigilant – ready to protect yourself and your friends and family from scams and fraud that typically occurs around the holiday season. By sharing information about these scams and how to protect yourself, you can help others enjoy festivities with peace of mind.
Call the Payments Answerline™ at 800-475-0585, Option 1 to learn more about the education and other resources available to support your organization. This holiday season, savor the joy and togetherness by ensuring scammers don’t steal your holiday cheer!