As the holiday shopping season approaches, consumers are advised to be vigilant against potential fraud. This time of year is known for its attractive discounts, but it also attracts scammers looking to exploit unsuspecting shoppers.
Impersonator scams topped the list of fraud reports to the Federal Trade Commission in 2023, with $2.7 billion in losses. These scams often involve fake emails, texts, and websites that impersonate people or businesses. Online-shopping scams followed closely with over 368,000 reports last year. Tara Ambrose, senior manager of Client Risk Prevention at RBC Wealth Management–U.S., emphasizes that “anyone can become a victim” and advises individuals to prepare for inevitable attempts at fraud.
To safeguard personal information during holiday shopping—whether online or in person—consumers are encouraged to follow several precautions:
1. **Use Cards Wisely**: When using credit or debit cards, carry only those necessary and protect your PIN by shielding keypads when entering it. Contactless payments offer convenience but are vulnerable to electronic theft; using a metal card holder can help shield card details from unauthorized readers.
2. **Be Aware of Online Scams**: With the rise in online shopping comes an increase in related scams:
- **Fake Websites**: Criminals create sites mimicking legitimate businesses to steal data.
- **Fake Order Scams**: Fraudulent messages claim purchases were made and attempt to extract personal information.
- **Tracking Number Traps**: Fake tracking notifications aim to compromise devices or solicit fees.
- **Charity Scams**: Fraudsters impersonate charities; verify legitimacy independently before donating.
3. **Online Safety Measures**: Ensure websites are secure (look for "https://" and a padlock icon) and keep computer systems updated for better security features. Avoid public Wi-Fi when transmitting sensitive data like credit card numbers.
Ambrose advises regular monitoring of bank statements for unauthorized transactions as part of being proactive against cyber fraud. She highlights that even small unnoticed transactions can indicate potential fraud attempts leading up to larger ones.
Consumers should sign up for alerts from their banks regarding account activity and consider multi-factor authentication for additional security on financial accounts.
“Cybercriminals are constantly looking for access to other peoples’ information,” warns Ambrose, urging heightened awareness as scammers grow more sophisticated during the holidays.
RBC Wealth Management provides these insights as part of its ongoing efforts to educate consumers about protecting themselves online during this busy shopping period.