Holiday Shopping Expected to Reach Record Levels
This year’s holiday shopping season is projected to achieve record-breaking spending levels according to the National Retail Federation. However, while consumers are opening their wallets, they’re also inadvertently exposing themselves to potential fraud, particularly when making last-minute purchases.
“Procrastination is one of the keys to success for crooks,” warned Visa’s chief risk officer, Paul Fabara. The consequence of procrastination could result in not receiving the ordered items and potentially having your credit card used for unauthorized transactions.
If you find yourself in this predicament, the first step is to contact your financial institution to report the compromised account. A reliable organization should be able to monitor any suspicious activity and offer guidance on the next steps to take.
AI Fraud Risks and Solutions
Fabara also highlighted the growing threat of artificial intelligence (AI) fraud this season. AI technology can effectively mimic your likeness and compromise accounts. To minimize this risk, Fabara recommended multifactor authentication, which requires additional steps such as email or text verification, answering a secret question, or scanning a fingerprint.
Visa identified five types of fraud to watch out for, including digital skimming, phishing, ATM skimming, one-time-passcode bypass schemes, and physical theft.
Gift Card Payment Scams on the Rise
The Better Business Bureau noted a 50% increase in gift card payment scams in the past year. Consumers are particularly susceptible to scams when trying to purchase popular, hard-to-find toys or items. It’s crucial to be cautious of ads on social media offering items at extremely low prices, especially if the product is sold out everywhere else. Research the legitimacy of the company and look for consumer feedback and any potential complaints against them.
Another important tip is to review the return policies before purchasing to ensure a refund is possible if the product is unsatisfactory.
Visa also suggests additional precautions this holiday season including checking for secure web addresses, avoiding public Wi-Fi for shopping, and being cautious of deals that seem too good to be true.
Hot Take – Staying Safe During the Holiday Shopping Frenzy
The festive season brings the eagerness to shop, but it is also a time when consumers should remain vigilant against potential fraud. To ensure a safe and secure holiday shopping experience, it is essential to practice due diligence when making purchases, especially in the current environment of increasing fraud risks.
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