As shopping fraud schemes become more sophisticated, consumers must remain alert to protect their finances during peak shopping periods.
At a Glance
- 82% of shoppers have encountered some form of shopping fraud this year.
- Criminals exploit technology to target consumers, making awareness vital.
- Credit cards offer better fraud protection than debit cards or peer-to-peer apps.
- Shoppers should verify communications and purchase from trusted retailers.
Rising Fraud During Peak Seasons
Shopping fraud is becoming increasingly common, with an alarming 82% of individuals reporting exposure to scams. These schemes, often intricately devised, utilize AI-generated emails, imagery and misleading advertisements to acquire sensitive consumer information. AARP’s research highlights how scammers entice shoppers through fake offers, especially during high-shopping seasons like holidays, leading to package and identity theft.
While package theft is a traditional concern, scammers now employ sophisticated technologies, including email phishing and smishing (SMS text message phishing), to deceive consumers. Secure shopping through trusted retail entities remains a critical preventive measure.
💳How you can stay safe from card fraud:
– Shield your PIN whenever you enter it.
– If your card is lost/stolen, report it to your bank ASAP.
– Check bank statements for unauthorised transactions.
– Set up your online notifications to come through whenever you make a payment. pic.twitter.com/4o5wqTewPm— Take Five (@TakeFive) October 30, 2024
Impact and Consumer Behavior
The consequences of falling victim to fraud extend beyond financial losses, it also severely damages consumer trust in online platforms. Over 30% of shoppers intend to use peer-to-peer payment apps, unaware of their limited fraud protection. Although credit cards offer robust fraud protection and faster resolution timeline, 70% of shoppers still opt for debit cards, which entail longer resolution processes.
Scammers exploit social media by creating fake ads, while phone scams often mimic government agencies to deceive victims. The incidence of fraudulent notifications, mimicking shipping entities like USPS, has doubled since 2022.
Protect yourself from scams and fraud by shopping smart this festive season. Stick to reputable websites, look for the padlock symbol in the URL, and avoid suspicious links. 🛍️🔒#safeshopping #onlinesecurity #happyholidays pic.twitter.com/c58XMaZli4
— Aloha Browser (@alohabrowser) December 20, 2023
Protection Strategies
To combat theft, Kathy Stokes of AARP recommends direct purchases through reputable retailer websites and avoiding interaction with suspicious links or ads. “It’s best to shop with a trusted retailer and to go to their website or use the app to make purchases. Don’t click on links because you could be sent to a fake site where their goal is to steal payment information.”
Consumers should take proactive steps by frequently verifying communications through official company channels, securing accounts, and reporting any suspicious activities. Essential resources like the FTC’s IdentityTheft.gov and the AARP Fraud Helpline are available to assist scam victims in recovering from potential losses.
