How to Protect Your Cards and Avoid Holiday Shopping Scams

Know how to protect your money from would-be scammers during the holiday season.

For many consumers, the holiday season is the most wonderful time of the year. Unfortunately, most scammers would agree. Debit and credit card scams increase yearly as holiday shopping kicks into high gear. And with credit card fraud rising a whopping 53 percent between 2019 and 2023, knowing how to protect your money from would-be scammers is essential.

According to the FBI 2022 Internet Crimes Report, Americans lost a combined total of over $281 million to online shopping scams. And even though scams are nothing new, a 2023 Norton Holiday Cyber Safety Insights Report cited that nearly half of targeted consumers still fell for them, losing an average of $1,500. Additionally, the AARP Fraud Watch Network indicated that 80 percent of consumers reported experiencing some fraud in 2023, much of it occurring over the holidays.

While scams occur year-round, it’s no surprise that they’re more likely to be successful during the holidays when people are extremely busy, preoccupied, and less likely to spot signs of fraud.

For example, many of us rely on giving gift cards. One of the more recent scams affecting consumers is known as card draining. This occurs when a thief removes a gift card from a sealed envelope, records the card number and PIN, and then replaces or swaps out the card and seals the envelope again. When an unsuspecting shopper purchases and activates the card, thieves can immediately access it online and steal the balance.

Artificial Intelligence-based fraud is also becoming increasingly sophisticated, making phishing emails more challenging to spot. Today, AI technology can generate near-perfect emails without grammatical errors or misspellings. The same goes for phone scams, where AI-generated voices can clone voices, ranging from a company HR director asking for personal information to a bank or credit union representative reporting a false fraud alert. If you’re ever in doubt in these situations, it’s best to ignore the request and contact the company directly at a phone number or address you know and trust.

Did you know charities receive an average of 41 percent of their donations in December? Even in the charity world, scammers often exploit our tendency to give more this time of year by setting up fake charities or fundraisers. Before donating, research a charity and ensure it is genuine.

8 Tips to Avoid Being Scammed

The holiday season is a critical time to be vigilant. As scammers continue to ramp up efforts to defraud consumers, there are several things you can do to stay one step ahead. Consider these tips:

1. Review your accounts regularly for unexpected charges. Monitor your account statements frequently, and with Citadel Credit Union, you can initiate disputes in Online Banking if necessary.
2. Set up account alerts and card controls. Most online banking apps, including Citadel’s, allow you to set up notifications for every transaction on your account and limit card usage to your specifications.
3. Change your passwords and PINs regularly. Create strong, unique passwords that aren’t easy to guess, incorporating various characters and omitting references to personal information like birthdays or addresses.
4. Pay with contactless cards or mobile wallets. Contactless payment methods are more secure than traditional card swipes and can help you avoid skimming devices, sometimes used to steal your information in stores or restaurants.
5. Shop on secure websites. Look for “https” in the URL and a padlock icon in the address bar to verify that a website is secure. Be especially cautious of deals that seem too good to be true. Many web browsers, including Safari or Chrome, will alert you if a site or download is suspicious.
6. Check gift card packaging for signs of tampering. Common signs include loose or resealed packaging, an exposed PIN, or a barcode attached to a sticker. If you see anything suspicious, bring it to the store’s attention.
7. Avoid “porch pirates” and package thefts. When you shop online, avoid increased package thefts this time of year by bringing in packages quickly or getting them delivered to a secure locker or P.O. box instead.
8. Be wary of unsolicited emails and text messages. Never click on links or download attachments from unknown sources. Legitimate companies won’t ask for sensitive information unexpectedly via email or text.

More Ways to Stay Vigilant

In addition to the above tips, here are a few extra steps you can take to increase your financial security during the holiday season:

Enable Two-Factor Authentication. Whenever possible, enable two-factor authentication on your accounts. This adds an extra layer of security by requiring a second form of verification, such as a one-time passcode sent to your phone, making it less likely a scammer will access your data.

Be Cautious with Public Wi-Fi. Avoid making financial transactions or shopping online using public Wi-Fi networks. If you’re on the go or it’s your only option, use a virtual private network (VPN) to encrypt your data.

Educate Yourself on Common Scams. Stay informed about the latest scam tactics like card draining. Bookmark CitadelBanking.com/Security and other trustworthy consumer protection agencies like the Federal Trade Commission to keep an eye on the latest scams targeting consumers.

Check Your Credit Report. Monitor your credit report regularly for any suspicious activity. If you’re a Citadel member, you can check your credit score and detailed credit report any time for free at no cost and with no effect on your score.

Ask for Help. If you believe you may have fallen victim to a scam, don’t be embarrassed. Immediately contact your bank or credit union to report the fraud and lean on their help to freeze your accounts or reissue cards as necessary. We’re trained to recognize these types of scams and help our members protect their accounts and their privacy.

Focus on Holiday Cheer, Not Fear

Don’t let potential scammers ruin your holiday joy. By staying vigilant, implementing strong security measures, and following the tips outlined here, you can significantly reduce your risk of falling victim to holiday shopping scams. Stay safe and enjoy the holidays!