BY JOHN ELLIS, FINANCIAL ADVISOR
As Christmas approaches, we are getting ready and buying the presents, but we need to be very careful as it is the most lucrative period for scammers. They are more active during this period than at any other time of the year. Understanding how these scams work and taking appropriate measures can help ensure our Christmas cheer is not undermined by fraudsters.
A mix of factors contributes to the increase in frauds during Christmas. More people are shopping online, and fraudsters find it easier to cover their activities among legitimate trade. Unfortunately, some retailers may prioritise profits over stringent security checks, and with the profusion of marketing emails, it provides scammers with an opportunity to blend in. Add to that, the Christmas rush can make us more prone to mistakes, whether clicking on dubious links or falling for fake deals.
Scammers are extremely resourceful, using a variety of tactics to exploit unsuspecting victims. Here are some common scams to be aware of, courtesy of the cybersecurity company, ESET Ireland.
* Gift Card Scams: Fraudsters sell fake or stolen gift cards or claim they are prizes in fabricated contests.
* Fake Websites: These mimic legitimate retailers, tricking users into entering personal details or making payments for items that never arrive.
* Fake Shipping Notifications: Scammers impersonate courier companies, sending emails or texts to steal personal data or install malware.
* Fraudulent E-Cards: Links or attachments in fake digital greeting cards may lead to malicious websites or download malware.
* Phone/Vishing Scams: Cold callers pretend to be from retailers, charities, or delivery companies to extract sensitive information.
* Fake Charities: Fraudsters exploit holiday generosity by creating fake charities to solicit funds or steal information.
* Seasonal Job Scams: Promising high pay for minimal work, these scams aim to harvest personal data or charge sign-up fees.
* Stay vigilant. Implement the following — use strong, unique passwords and enable two-factor authentication for all your accounts. Be sceptical of deals that seem too good to be true and never share personal or financial information with unsolicited callers or messages.
* When online check for secure website indicators, such as “HTTPS” or a padlock icon in the address bar. Remember though, this alone is not foolproof, so keep your software and devices updated to protect against malware.
* Use credit cards instead of instant payment apps for added protection and if donating to a cause verify the charity’s authenticity and avoid donating through unsolicited messages.
* Think about using a reputable online bank that allows the use of one time only credit cards – once used its destroyed and a new card is made available. Great for a one-off purchase and in the event of being defrauded you will only be hit once.
If you suspect you have fallen victim to a fraud, act quickly to minimise the damage. Report the incident to local authorities or fraud helplines and immediately contact your bank to freeze or replace your cards. Immediately stop communicating with the scammer and document all interactions. Change passwords for your affected accounts and consider locking your credit to prevent further misuse.
With the rise of generative AI, frauds are becoming more sophisticated so it is crucial to remain cautious. By understanding the risks and following best practices, you can enjoy a safer, scam-free Christmas. Together, we can outsmart the fraudsters and keep the Christmas spirit alive.
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