Digital shopping fraud is rising, putting unprepared consumers at serious risk.
At a Glance
- 82% of consumers encountered fraudulent activities in 2023.
- Phishing and AI-generated scams increase during the holiday season.
- Use credit cards for safer transactions and avoid clicking suspicious links.
- Verify retailer legitimacy to avoid payment theft.
The Prevalence of Digital Fraud
The modern consumer is increasingly under threat from shopping fraud. The AARP Fraud Watch Network found that a staggering 82% of consumers faced some form of fraudulent activity this year. With criminals becoming more innovative, employing AI-generated images and fake ads, the era of more advanced scams is clearly upon us.
Complimentary findings indicate that the holidays are a particularly vulnerable time, with shoppers often targeted by scams when they are most pressured. Kathy Stokes from AARP emphasizes that clicking on seemingly trustworthy links can result in credential theft from phishing sites.
Here are some ways to protect yourself when shopping online: https://t.co/Uodm9VTzBb
— FTC (@FTC) December 22, 2023
Effective Consumer Strategies
Consumers need effective strategies to combat these scams. The smartest approach involves sticking to purchases from recognized retailer websites or apps. As Kathy Stokes advises, avoid clicking on external links to mitigate the risks. Rather, “shop with a trusted retailer and go directly to their website,” she explains, to avoid phishing or malware.
Eradicating risks involves adopting these precautionary measures: scrutinizing company reviews, ensuring web security indicates HTTPS with a lock symbol, and avoiding prepaid gift card payments. Credit cards are often safer, providing stronger fraud protection, whereas debit cards present a longer resolution process in case of fraud.
Holiday Season Scams
The holiday shopping season amplifies these concerns. The FBI’s Internet Crime Complaint Center highlights that scammers intensify efforts during this period, exploiting shoppers who might feel pressured to secure deals or ship gifts promptly. Americans lost $265 million to non-delivery scams in recent years, with additional credit card fraud losses reaching $129 million.
Mindful practices, such as purchasing directly from store apps and cross-referencing suspicious communications, are vital in fortifying personal and financial data against cunning fraudsters.
