The holidays are upon us, which means many of us will be hitting the stores in search of the perfect gifts. As joyful as the season can be, it's also prime time for scammers trying to steal your money and personal information.
Scams cost Americans nearly $8.8 billion throughout 2022 -- an increase of more than 30% over 2021, according to the the U.S. Federal Trade Commission. The most commonly reported fraud is imposter scams, followed by online shopping scams, prizes/sweepstakes/lotteries, investment related scams, and business/job scams.
"During the hustle of the holiday season, shoppers often fall victim to scams as they look for discounts on popular holiday gifts, make last-minute purchases and overlook suspicious activity," Iskander Sanchez-Rola, Director of Privacy Innovation for Norton, said in a statement.
Online shopping scam victims lost an average of $1,500 during the holiday season last year, according to the 2023 Holiday Norton Cyber Safety Insights Report. Cybercriminals primarily targeted victims during the holiday season by connecting through social media platforms (41%), third-party websites (35%), emails (32%), phone calls (28%) and text messages (26%), per the data.
Prevalent holiday scams in 2022 included online shopping scams (40%) and phishing scams (37%), with respondents also noting high instances of postal delivery scams (31%) and gift card scams (30%), according to Norton.
Luckily, there are several actions you can take to safeguard yourself from getting swindled.
"Avoid the cost of falling victim to cybercriminals by knowing how to recognize a scam and keeping vigilant for suspicious links and unfamiliar activity in your bank and credit card accounts," Sanchez-Rola said.
Don't let scammers steal your money or your holiday cheer. Follow these tips to avoid falling prey to holiday shopping scams:
1. Never buy from unrecognized retailers
Check details of unfamiliar stores, ratings and reviews of resellers and be wary when you see too many five-star reviews, especially in a short period of time, as this could indicate fake ratings.
2. Check for site security
Look for "https" at the front of the site's URL and the small lock icon in the browser window. These indicate that the website is secure, ensuring any data you share (such as credit card numbers or shipping details) will be encrypted when you submit it.
3. Use secure payment methods
Be wary of websites or sellers that request unusual payment methods like wire transfers, cashier's checks or apps. Stick to secure payment options such as major credit cards or PayPal.
4. Secure your device and passwords
Avoid conducting any business online while using a public Wi-Fi network unless you use a virtual private network. Create strong, unique passwords for shopping sites, email accounts and financial apps. Also use multi-factor authentication whenever possible -- it helps prevent thieves from easily hacking accounts. Keep security software for computers, tablets and mobile phones updated. Make sure anti-virus software for computers has a feature to stop malware, and that there is a firewall enabled that can prevent intrusions.
5. Be suspicious of deep discounts
Avoid the allure of deals and offers that seem too good to be true, like must-have gifts at extremely low prices. Remember that if it seems too good to be true, it probably is.
6. Don't fall for clickbait in unsolicited emails
Rather than clicking on a link from an email or text to a hot deal, go to your web browser and type in the web address of the company purportedly offering the great deal. Also watch for "phishy" confirmation emails: If you receive a confirmation email for an order you didn't place, ignore and delete it.
7. Buy gift cards directly from the retailer
Avoid buying gift cards from a retail rack, where the cards can be tampered with and replaced.
8. Beware of pushy charities
Pressure from a charity fundraiser to donate right away is a red flag. Pushy charities could be an indicator that the cause is bogus; legitimate charities will accept your donations on your own timeline. Also, any time you are prompted to make a donation by wire transfer or gift card, it is a scam.