This holiday season, scammers are working overtime to trick consumers out of money and personal data. Every year, the FBI warns Americans that scam reports surge between November and January. As a matter of fact, the Federal Trade Commission logged tens of thousands of shopping-related scam complaints during the 2024 holiday season. Now with AI, it is more important than ever to pay attention online and listen to your gut if a deal is too good to be true.
The holiday season has always been high-risk for shoppers. Increased online shopping and rushed purchases make people more likely to overlook warning signs. Additionally, advertisers really lean in on emotional appeal during this time: limited-time sales, “urgent” shipping updates and charity requests. Fraudsters often abuse these legitimate tactics for their own gain, using realistic emails, texts and fake websites to mimic trusted retailers.
However, AI has ushered in a new era of scams. Scammers today are generating phishing emails, deepfake videos and cloned voices to trick you into handing over your personal data and money. Long gone are the days of bad spelling and weird grammar; scammers can now more easily create scams that appear error-free. Now we must look for new clues we are potentially being tricked.
This includes watching for emails that perfectly replicate your company’s style but ask for odd things. You may also receive an unexpected phone call from family/friends who are “in trouble,” but you’re unable to contact the person via usual channels. Do not fall for these two well-known AI tactics.
Other common holiday scams include fake online retailers offering too-good-to-be-true pricing with no online footprint. Never click on an email or text that warns you of “delivery issues” or “suspicious activity.” Instead, log into your account directly to check. Verify all organizations asking for donations by checking Charity Navigator or BBB Wise Giving Alliance.
It’s important to remember that no legitimate business will ever ask you to pay with gift cards, wire transfers or crypto.
Aside from knowing what to look out for, there are several expert-backed strategies you can implement on your own this holiday season. All purchases should be made with a credit card, not a debit card. Credit cards offer stronger fraud protections under federal law.
Enabling multi-factor authentication adds an additional layer of security for accounts that store payment info. Also, update your passwords at the start and end of the holiday season. Lastly, set up alerts for unusual transactions and make it a habit to check your accounts weekly.
If you do get scammed, act immediately. Contact your credit card issuer, file a complaint with the FTC and monitor your credit.
Scammers are getting smarter, but so can we. The same technology that they use to deceive can also empower consumers to stay safer than ever before. Fraud prevention isn’t about fear; it’s about paying attention.
