With Black Friday and Cyber Monday sales everywhere, thought it would be a great time to discuss Holiday Shopping Fraud. With the rise of AI making it so easy for scammers to clone websites and create realistic video ads to promote their fake sales, the era of obvious scams is over. Deepfake videos are getting more sophisticated and harder to spot and this will only get worse as time goes by. These scams are multiplying across all social media platforms. They can impersonate celebrity likenesses and voices or well known brands to advertise fake programs and giveaways. There is a very thin line between what is authentic and what is fraudulent, and for most holiday online shoppers, the differences are not easy to spot.
According to McAfee:
- 1 in 5 Americans say they have been scammed in a past holiday season.
- The average loss per victim is $840
- 57% of those surveyed are more concerned about AI scams this holiday season than ever before.
- 38% of those surveyed believe they can spot a scam, however 22% of the 38% have fallen for one.
- Detected deepfakes surged 1,750% in North America last year!
Here are just a few Holiday shopping scams to watch out for this year:
- Fake Retail Sites and Counterfeit “Deal” Pages: These scams mimic brand websites down to the logo, the only difference is the URL. Always check the full web address. Look for “https”, extra letters or misplaced punctuation, and avoid clicking ads on social media posts. Better safe than sorry, just type the retailer’s name directly into your web browser to ensure you get to the legit site.
- TikTok and other Social Media Scams: Everyone follows trends, even cybercriminals. Short form videos are major scam hotspots as scammers use deepfakes or stolen content to make their fake deals seem legit. Check the creator’s account to be sure it is verified and look back at past posts and patterns. A real brand is most likely not going to share a one off video or post unfamiliar links.
- Delivery and Shipping Text Scams: Sometimes you will receive a text saying that a package can’t be delivered or you need to pay a fee to confirm your address. This is almost always fraud, don’t fall for it! Once you enter your payment information, boom, the scammer has you where they want you. Real shipping companies are most likely not going to send out a text with a clickable payment link. If you receive a message pertaining to shipping, visit the carrier’s official website or app to verify.
- Gift Card and Account Verification Scams: You may receive messages or emails stating that your PayPal or Amazon account is locked out and request you to confirm details. Others may ask for gift cards to resolve a billing issue. With these types of scams the fraudster uses pressure tactics to create a sense of urgency to get their victims to act on impulse. Once the victim hands over the gift card numbers, the funds are gone instantly. Remember, no legit company will ask for payment in gift cards or ask you to share one time codes over text.
Shop safely this Holiday Season! If you see a too-good-to-be-true ad, go directly to the actual retailer site. Take a moment to verify emails and texts. Check the sender’s address and look for any misspelling. Be sure your software is up to date and use scam detectors to verify legitimacy. Avoid public WIFI and NEVER pay with gift cards or crypto. Now, let the shopping begin!
Let’s all have a safe, fun, fraud free holiday season!
Tara Montgomery
Exchange Bank of Alabama
Fraud Specialist
(256) 691-0328
