Cyber Monday – Nov. 27 this year — has become the biggest shopping day of the year, with revenues anticipated to be $13.7 billion, according to Capitol One Shopping.
But along with shopping in the holiday season come scammers ready to take advantage of those distracted by deals and their Santa’s Helper list, said the personal finance experts at Wealth of Geeks:
- The incorrect bank details scam – One of the most common cons is emailing shoppers to say their billing information is incorrect, and that it needs changing immediately or the order will be void.
Regardless of whether or not you believe your bank details are correct, Wealth of Geeks said, you should contact the retailer directly with any order confirmation or information so you can receive legitimate information on your account.
- Hot deal scam – Certain popular items are advertised on fake websites that are generally hard to find. These items turn out to be illegitimate, resulting in you paying for a product you will never receive – and the scammer possessing your payment details.
If you come across an item like this, check the legitimacy of the product or the seller through the Better Business Bureau, which can verify it.
- Phishing emails – Used throughout the year, these are designed to trick users into disclosing sensitive confidential information. So it’s important not to click on any links or pop-ups from sources that you are not familiar with.
This also applies to websites, including suspect URLs (ones without an “https” or locked padlock symbol on the bar) and websites with poor design.
- Fake tracking number scam – Fraudsters are sending fake package tracking notifications as an email attachment or link. Scammers use these tactics to infect your device with malware or direct you to phishing sites.
Legitimate retailers will never send tracking numbers via an attachment. They are normally directly in your inbox or accessed via the retailer’s website. Always visit the seller’s site to get accurate tracking information for your order.
- Instant messages – You may receive a suspicious-looking message with a link to a well-known website, urging you to click to secure a great deal. Scammers will replicate the retailer website’s URLs and layouts, which makes it extremely hard to spot whether it is fraudulent or not. However, much of the time the link is fake, and clicking on it will invite malware to your device, making your personal information vulnerable.
Once the scammers have encouraged people to click, they will then send phishing messages and keylogging malware straight to your device.
Before clicking on a so-called “deal,” go directly to the retailer’s official online website to see if that same deal is there.
- The fake charity scam – Cyber Monday is followed by Giving Tuesday – a day for donations and activism to make the world a better place. Indeed, the entire holiday season sees a surge of giving, which scammers exploit through phony philanthropies and high-pressure tactics to get you to donate.
Often you can spot a fake charity, because it will accept payment only through gift cards, wire transfers or cryptocurrency. The CharityCheck directory includes every charity and nonprofit listed by the Internal Revenue Service (IRS) as exempt from federal income taxes.
- Fake social media profiles – Social media profiles are simple to impersonate, as all a scammer has to do is copy the logo, branding, hashtags and content. This mode of communication can be used to trick customers into giving personal information or data or to sell counterfeit products.
You can often spot a fake social media website through its aggressive advertising campaigns. Always check if there is an alternative official social media account that is verified or has more followers before clicking on the one you have come across.
- Fake product reviews – Recently, two China-based review brokers were sentenced to two and a half years in prison for facilitating fake reviews in Amazon’s store. Fake Amazon product reviews are usually packed with technical jargon and feature unusual phrases.
You should also be aware that there are “review exchange” clubs online, normally on social media sites, where sellers will offer goods in return for generous – and often misleading –comments.
Always compare reviews of the product on the sites of several other official retailers before you make a purchase.
- “Gray Market” distribution – During the season, brands will be using all kinds of channels to market and sell their products. However, when a product falls out of a brand’s authorized network, it will no longer have control. When this happens, unauthorized sellers may not properly display, package, handle or ship the item correctly. Therefore, returning or exchanging the product will be a lot more difficult.
10. Gift card and discount scams – Gift cards are a popular gift at the holidays, which is why scammers will offer gift cards at a discount. But these cards are either empty or stolen. You should only buy gift cards from reputable sources, such as the retailer’s official store or online website.
Similarly, discounts and coupons received via email or social media that are advertised as huge discounts can also be void. Therefore, verify the source of the coupon to ensure its valid before using it.
Added Wealth of Geeks founder Michael Dinich: “Fraudsters are becoming increasingly clever as technology evolves, and during this busy shopping period, it provides the perfect opportunities to exploit the increased volume of transactions and potentially catch shoppers off-guard.
“Most of the time, a cybercriminal’s motive is to steal a customer’s money or personal information, such as bank details, login credentials, personal address.
“Therefore, to protect themselves, shoppers should take steps to secure their online activities, such as using strong, unique passwords, enabling two-factor authentication, being cautious of phishing attempts and regularly monitoring their financial statements for any suspicious transactions.”
