The holiday shopping season is here. From Black Friday to Cyber Monday, the hunt for the perfect deal is on. But you’re not the only one looking for steals: so are scammers.
Scams have evolved at a rapid pace from their rudimentary form years ago. In fact, you can expect that this year scammers are using sophisticated Artificial Intelligence (AI) to create apparently flawless fake websites, write very persuasive phishing emails, and even clone the voices of your loved ones.
The holiday shopping season, from Black Friday through Cyber Monday, is the busiest time of year, for both shoppers and scammers. As you hunt for the best deals, criminals are scaling up their attacks.
Protecting your wallet from the frenzy of too-good-to-be-true offers takes vigilance and a strong resistance to common scammers psychological tactics such as the “fear of missing out” or FOMO. Latitude 32 Credit Union is here to help with our comprehensive guide to recognizing and avoiding the most common and damaging holiday shopping scams.
1. Fake Websites and Deceptive Discounts
Scammers can now much more easily create highly convincing, fake online stores and social media ads designed to lure you with apparently incredible deals. Their goal is twofold: to steal your payment information and to take your money without ever shipping the product (a Non-Delivery Scam).
Your Protection Plan:
- Trust Your Gut on Pricing and Reputation: If a deal on a high-demand item seems too good to be true, it is. Be even safer by sticking to reputable retailers you already know.
- Inspect the URL: How will you know it truly is the retailer you are familiar with? Always check the web address. One thing to check is to look for the “https://” and a padlock icon. But scammers can now get these. The real red flags are typos (e.g., Lattitude32) or strange domains (e.g., .shop or .xyz instead of .com).
- Go Direct: Never click links from unsolicited emails, texts, or social media ads. The safest path is to type the official retailer’s correctly spelled URL directly into your browser navigation bar.
- Look for Verifiable Information: If it is not a retailer you are already familiar with, you will need to either give up on the transaction or verify the authenticity of the business. A legitimate business will have a physical company address, a customer service phone number, and a clear, detailed return policy. Having this information is not enough to prove legitimacy, but if this information is missing or vague, you should certainly close the tab.
2. Phishing and “Smishing” (SMS Phishing)
The most common holiday scams exploit the fact that everyone is expecting packages. Fraudsters impersonate major retailers and shipping companies like Amazon, FedEx, or USPS to trick you into clicking a malicious link.
- The “Delivery Problem”: You get an email or text claiming your package is delayed, “stuck in customs,” or requires a small “redelivery fee.” The message includes a link to “reschedule” or “update details.”
- The “Fraudulent Order” Alert: You receive an urgent, detailed invoice for a large purchase (e.g., a TV or computer) you never made. The email provides a link to “cancel your order” immediately.
Clicking the link often leads to a fake login page designed to steal your account credentials, personal information, or financial information. Additionally, it may download malware, such as ransomware or spyware, directly onto your device.
Never click links in unexpected delivery alerts or order confirmations. Track all your orders exclusively by logging into your account on the retailer’s official website.
3. The Demand: Risky Payment Methods to Avoid
A scammer’s success depends on getting paid in a way that is untraceable and irreversible. The payment method you choose determines your ability to recover stolen funds.
- NEVER Pay with Wire Transfers or Crypto: Legitimate businesses will never demand payment via a wire transfer or cryptocurrency for a product. These methods are the equivalent of sending cash. Once sent, the money is gone forever with no recourse.
- Never Pay with Gift Cards: Scammers, often impersonating the IRS or law enforcement, demand payment via specific gift cards (e.g., Apple, Target, or Visa gift cards). They will ask you to read the card number and PIN over the phone. No government agency or legitimate online business accepts gift cards as payment.
- Use Your Credit Card (Not Your Debit Card): This is a powerful defense.
- Credit Card (Fair Credit Billing Act): When you use a credit card, you are spending the bank’s money. If you’re a victim of fraud, your liability is legally capped at $50 (and most issuers, like Latitude 32, offer $0 liability). You can dispute the charge, and the funds are not taken from your account during the investigation.
- Debit Card (Electronic Funds Transfer Act): When you use a debit card, the money is instantly pulled from your checking account. If you lost your physical card, you should notify your financial institution within 2 days of the loss or theft. If you wait more than 60 days after the first unauthorized transaction shows up on your account statement to tell your financial institution, you may be liable for all the money that was fraudulently spent.
4. Charity and Imposter Scams
Charitable giving is exploited by fake charities and highly convincing imposter scams, which are now being enhanced by AI.
- Fake Charities: You may receive unsolicited emails or see social media posts for urgent donation drives. Before you give, verify the charity using independent resources like Charity Navigator. Always donate directly through the charity’s official, secure website, not through a link sent to you.
- The “Grandparent Scam” (Scams Targeting Seniors): Per NCUA guidance, be wary of frantic calls impersonating family (“I’m in jail and need bail money”) or law enforcement. Scammers use AI to clone a loved one’s voice from audio found online. They create a sense of false urgency and insist you do not talk to other family members about their situation. Hang up. Ignore their instructions: Call your family member or another relative directly on a number you know is theirs to verify the story.
Your Holiday Protection Plan
Your vigilance is your best defense. Adopt these habits now:
- Monitor Transactions: Check your Latitude 32 account daily. The faster you spot an unauthorized charge, the faster we can stop the fraud.
- Lock Down Your Accounts with MFA: Use Multi-Factor Authentication (MFA) whenever possible. This is the code you get via text or an app after entering your password. MFA is one of the most effective, simple ways to block unauthorized access.
- Avoid Public Wi-Fi for Purchases: Never access financial sites (like your banking app) or make purchases over unsecured public Wi-Fi. Scammers can intercept your data on these networks.
- Place a Credit Freeze: To prevent fraudsters from opening new accounts in your name, the FTC recommends a credit freeze. This is a free service that blocks access to your credit report. You must contact each of the three major bureaus individually (Equifax, Experian, and TransUnion) to place the freeze.
We Are Here to Help
Don’t let a scammer spoil your holidays. At Latitude 32 Credit Union, your financial security is our top priority.
If you suspect fraud or receive a suspicious text or email related to your account, do not respond, click any links, or call any number provided in the message.
Call our Member Service team immediately at (843) 556-4809.