While the holiday shopping season may be fun and festive, it also creates ample opportunity for scammers to take advantage of unsuspecting victims. This season, safeguard yourself and your hard-earned money for what truly matters. Here’s what to watch out for while online shopping to help protect your finances so you can enjoy the holiday season.
1. Ensure the site is from a reputable retailer
Unfortunately, scammers take advantage of this time of year by standing up fraudulent sites or product listings, posing as known brands or companies. While you may think you’re shopping on a reputable site, you run the risk of paying for products that never arrive, or worse, compromising your personal and bank information. Before you begin to shop, double check these signs to ensure the site is a safe one:
Make sure the URL starts with HTTPS
Look for a trust seal (or lock symbol) next the URL with the words "secure" or "verified”
If the site doesn’t have these, click to close and find another retailer. You could also download your favorite retailers' verified app stores. They're much less likely to be compromised.
Read more: Keep your holiday spending on track with Ally Bank spending buckets
2. Be wary of too-good-to-be true deals
Although you’ll likely see many deals during this shopping season, if a deal sounds too good to be true, it probably is. Cybercriminals may use fraudulent websites or online marketplaces to post false listings with huge discounts and urgent messaging to trick shoppers into giving up financial information. If you find a great deal online, always pause and take a moment to check the deal, seller and website before purchasing.
Scam alert: Be particularly aware of Brushing scams this season. This is when an online seller, usually a third-party retailer, sends unsolicited packages to your address and leverages the order information to post a positive review about their products under your name. These packages may also contain QR codes that lead to malicious sites when scanned. If you think you’re the victim of a brushing scam, notify the retailer, update your passwords and monitor your accounts for any suspicious activity.
3. Avoid gift card gimmicks
Gift card scams are especially common during the holiday season. Typically, criminals will start with an urgent phone call or email that pressures you to buy gift cards. Scammers may impersonate family members, government officials or coworkers claiming that immediate action is required. They might also send you a fake check, asking you to cash it and send the difference in gift cards. Once you provide the card numbers and PINs, the fraudsters can access the funds even if you still have the physical card. To protect yourself, always verify the identity of anyone requesting urgent action or personal information.
4. Use secure payment methods
Opt for credit cards with fraud protection or trusted mobile payment options. Even if the payment method is secure, verify details carefully and ensure the platform has policies that protect victims of cybercrimes.
To protect yourself, always verify the identity of anyone requesting urgent action or personal information.
5. Spot stamp scams
If you find deals online for discounted holiday stamps, proceed with caution: fraudulent stamps can result in the destruction or non-delivery of mail, causing the loss of valuable or sentimental items. Always purchase stamps directly from USPS or your local post office.
6. Stay aware on social
With the growing popularity of social platforms, scammers have found new ways to exploit users. Common scams include:
Phishing attempts, where fraudsters create fake login pages or send deceptive messages to steal personal information
Fake contests and giveaways, where scammers entice users with non-existent prizes to collect personal details or fees
Impersonation scams, with cyber criminals pretending to be celebrities or popular users to promote fake offers or solicit money
Additionally, scammers may promote substandard products, tricking users into making fraudulent purchases. To safeguard against these cons, verify the legitimacy of offers and accounts, remain cautious of unsolicited messages and report suspicious activity to the social platform’s moderation team.
7. Keep your defenses up
Maintaining strong cybersecurity practices is essential for protecting sensitive information. Regularly update your passwords and use two-factor authentication to significantly lower the risk of cyber threats. When shopping online, it’s important to know who you’re buying from — or selling to. Research businesses and read reviews to verify the legitimacy of vendors and buyers to help you avoid scams and ensure you’re dealing with trustworthy parties.
Tip: Monitoring the shipping process is also crucial. Keep track of your purchases and deliveries to help prevent issues like lost or delayed items and ensure that you receive exactly what you ordered. (And avoid fake missed delivery scams, too.)
8. Be cautious with public Wi-Fi
Avoid making financial transactions over public Wi-Fi, as these networks are often less secure. Use your mobile data plan instead and be aware of "shoulder surfers" who might observe you typing personal information like passwords or PINs.
9. Update your software
Ensure your security software, internet browser and operating system are up to date to protect your device from hackers. Regular software updates help close vulnerabilities and strengthen your device’s defenses.
Keep your holiday season secure
As you shop this season, have security top of mind to prevent any holiday headaches. Protect yourself from breaches and common scams to ensure your celebrations remain joyful and carefree.
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