Protect Yourself from Black Friday Scams and Holiday Shopping Identity Theft

by Brian Thompson | Nov 20, 2024 | Identity Theft, Scams

Black Friday is coming and that means… SHOPPING! The excitement of finding amazing deals is in full swing. But, this also brings an increase in identity theft and fraud schemes. Cybercriminals are targeting you with scams designed to steal personal and financial information. Check out how to spot these threats and protect yourself from Black Friday scams and holiday shopping identity theft

Understanding the Rise in Holiday Scams

Why Cybercrime Peaks During the Holiday Season

• High Transaction Volumes: The sheer number of online purchases makes fraudulent transactions harder to detect.
• Relaxed Vigilance: In the excitement of snagging deals, shoppers may overlook warning signs of scams.
• Unsecured Connections: Many shoppers use public Wi-Fi, making them vulnerable to cyberattacks.

Black Friday Scams to Watch Out For

1. Phishing Emails and Fake Websites

One common holiday shopping scam is phishing emails and fake websites that look like trusted stores. These scams promise low prices to trick people. In 2023, Kaspersky found over 30 million phishing attacks aimed at online stores, payment systems, and banks.

• What to Look For:
  • Emails with urgent language urging immediate action.
  • URLs with slight misspellings or unusual domains (e.g., “amaz0n.com”).
  • Poorly designed websites with broken links or missing “https://” in the URL.
• How to Stay Safe:
  • Avoid clicking on links in unsolicited emails.
  • Type the retailer’s URL directly into your browser or use bookmarks for trusted sites.

2. Non-Delivery Scams

Fraudsters often advertise products on platforms like Facebook Marketplace or eBay at irresistible prices, collect payment, and fail to deliver.

• Protection Tips:
  • Stick to well-known marketplaces with robust buyer protections.
  • Check seller reviews and ratings before making a purchase.

3. Gift Card Scams

Some scammers request payments via gift cards, knowing they are nearly impossible to trace or recover.

• Warning Signs:
  • Sellers insisting on gift card payments.
  • Emails or phone calls requesting gift card numbers for payment.
• How to Avoid Them:
  • Never use gift cards to pay for online purchases.
  • Report suspicious requests to the retailer or platform immediately.

4. Typosquatting

During high-traffic shopping periods, scammers register domain names similar to popular retailers. These malicious sites trick shoppers who make minor typing errors.

• Protect Yourself:
  • Double-check URLs for accuracy before entering personal or payment information.
  • Use search engines to find official retailer websites instead of typing the address directly.

Holiday Shopping Identity Theft Prevention Tips

1. Strengthen Your Online Security

The best way to protect yourself from holiday scams is by implementing robust cybersecurity practices.

• Passwords: Use strong, unique passwords for each account, and consider a password manager to store them securely.
• Two-Factor Authentication (2FA): Enable 2FA on accounts to add an extra layer of security.
• VPNs: Use a Virtual Private Network (VPN) to encrypt your connection, especially on public Wi-Fi.
• Antivirus Software: Keep your antivirus programs updated to guard against malware and ransomware.

2. Verify Retailers

Ensuring the legitimacy of an online retailer is critical before making any purchase.

• Look for “https://” in the URL and a padlock symbol in the browser.
• Research unfamiliar stores by checking reviews and ratings.
• Avoid deals that seem too good to be true—they often are.

3. Use Secure Payment Methods

The method of payment can greatly impact your level of protection.

• Opt for credit cards or payment platforms like PayPal, which offer fraud protection.
• Avoid wire transfers, gift cards, or other non-reversible payment methods.
• Enable transaction alerts on your credit card or banking app to monitor activity.

4. Monitor Your Financial Accounts

Regularly reviewing your accounts can help detect fraud early.

• Check bank and credit card statements for unauthorized charges.
• Sign up for transaction alerts that notify you of suspicious activity.
• Consider enrolling in an identity theft monitoring service.

How to Handle Identity Theft or Fraud

Despite taking precautions, you may still fall victim to a scam. Acting quickly can minimize the damage.

1. Report Unauthorized Transactions
   Contact your bank or credit card issuer immediately to dispute the charges and freeze your account if necessary.
2. File a Fraud Report
   Notify the Federal Trade Commission (FTC) through identitytheft.gov and report the incident to local authorities.
3. Monitor Your Credit
   Place a fraud alert or freeze your credit with the three major credit bureaus (Equifax, Experian, and TransUnion) to prevent further damage.

Identity Theft by the Numbers

Understanding the scope of identity theft in the U.S. highlights the importance of holiday shopping safety.

• Prevalence: In 2021, 23.9 million Americans experienced identity theft—9% of the population.
• Financial Losses: Victims lost a total of $16.4 billion due to identity theft in 2021.
• Credit Card Fraud: In 2023, 416,582 individuals reported credit card misuse, making it the most common form of identity theft.

Conclusion: Protect Yourself from Black Friday Scams and Holiday Shopping Identity Theft

Frequently Asked Questions (FAQs)

1. What are the most common Black Friday scams?
Phishing emails, fake websites, non-delivery scams, and gift card fraud are the most prevalent scams targeting shoppers.

2. How can I verify the legitimacy of a retailer?
Look for “https://” in the URL, read customer reviews, and stick to well-known platforms or official retailer websites.

3. Should I use public Wi-Fi for online shopping?
No. Public Wi-Fi is insecure and can expose your data to hackers. Use a VPN if you must shop while connected to public Wi-Fi.

4. What’s the safest way to pay online?
Credit cards and payment services like PayPal offer fraud protection and are safer than gift cards or wire transfers.

5. How do I avoid typosquatting?
Double-check website URLs before entering personal or payment information. Use bookmarks or search engines to find trusted retailers.

6. What should I do if I suspect identity theft?
Report unauthorized charges to your bank, file a report with the FTC, and monitor your credit report for further suspicious activity.

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Protect Yourself from Post-Hurricane Scams: How to Spot and Avoid Disaster Fraud After Hurricane Helene

by Brian Thompson | Oct 3, 2024 | Identity Theft, Scams

In the aftermath of Hurricane Helene, communities are beginning the long and difficult task of recovery. Sadly, just as the waters recede, the damage is assessed and homes and lives are rebuilt, another wave of disaster is hitting the victims: post-hurricane scams. These fraudulent criminals exploit the chaos and desperation following natural disasters, preying on people who are trying to rebuild their lives. Similar scams have been witnessed after hurricanes like Katrina, Harvey, and Ida, and now we see them again with Helene.

Common Post-Hurricane Scams and Crimes

1. Fake Charity Scams
After major disasters, fraudulent charities often emerge, posing as organizations that will provide aid to victims. With Hurricane Helene, authorities are already reporting an uptick in these scams, where fraudsters use names resembling well-known charities to solicit donations.

• Recent Example: Following Hurricane Helene, several fake fundraising efforts have appeared online and through unsolicited phone calls. The Federal Trade Commission (FTC) has issued warnings to verify the legitimacy of any charity before donating​(Justice)​(Consumer Advice).
• How to Protect Yourself: Use trusted sites like Charity Navigator or the Better Business Bureau to ensure that your donation reaches the right hands. Avoid giving through phone solicitations or social media posts without verification.

2. Contractor and Repair Fraud
As homes and businesses start to rebuild, scammers posing as contractors take advantage of vulnerable victims, offering quick fixes or debris removal services. With Hurricane Helene’s extensive damage, many unlicensed contractors have already appeared in affected areas.

• News Story: After Helene, numerous reports of contractor scams have already emerged, with victims paying for repairs that were never completed​(Justice)​(SC Consumer). These scams were rampant after past hurricanes as well, including after Hurricane Ida.
• How to Protect Yourself: Always verify contractors by checking their licenses, asking for proof of insurance, and avoiding large upfront payments. Never feel pressured to sign a contract immediately—get multiple estimates and references first.

3. Government and FEMA Impersonators
Scammers often pose as government officials or FEMA representatives, offering to help victims apply for disaster relief in exchange for personal information or fees. Following Helene, some residents have already reported receiving fake calls from individuals pretending to be from FEMA, asking for personal details such as Social Security numbers ​(SC Consumer)​(Consumer Advice).

• How to Protect Yourself: FEMA will never ask for payment to provide assistance. If you’re unsure whether the person contacting you is legitimate, call FEMA directly or use the FEMA Mobile App to access official updates​(Justice).

4. Price Gouging
Price gouging, where businesses drastically inflate prices on essential items like fuel, water, and building supplies, has also been reported after Hurricane Helene. This unethical practice takes advantage of people in urgent need during the recovery period.

• Recent Incident: Several residents in Georgia and South Carolina, two states heavily impacted by Helene, have reported paying excessive prices for basic items such as bottled water and gas​(SC Consumer).
• How to Protect Yourself: Keep receipts and report any incidents of price gouging to your state’s Attorney General’s Office. In most states, price gouging is illegal during emergencies.

5. Phishing and Cyber Scams
Disaster victims are also targeted through phishing emails and social media scams. These messages often claim to offer disaster relief but instead are designed to steal personal information.

• Recent Example: Scammers have started sending emails impersonating FEMA or other relief organizations, asking victims to click on malicious links or provide sensitive data​(Justice)​(SC Consumer).
• How to Protect Yourself: Be wary of unsolicited emails, especially those asking for donations or personal details. Always verify the legitimacy of any message by contacting the organization directly through its official website or hotline.

How to Protect Yourself Against Post-Hurricane Scams

Verify Before Donating:
After Hurricane Helene, take extra precautions before making any donations. Research the charity through trusted sites like Charity Navigator or BBB Wise Giving Alliance. Avoid giving out donations through unsolicited phone calls or social media campaigns.

Research Contractors Thoroughly:
If you need repairs or cleanup, don’t rush into an agreement. Ask for identification, check licenses, and verify their references. Legitimate contractors will provide a written contract, proof of insurance, and won’t ask for large upfront payments. Avoid anyone making unsolicited offers at your door.

Be Cautious with Personal Information:
Scammers will attempt to collect sensitive information under the guise of government aid or relief services. FEMA will never ask for your Social Security number or payment for its services. Be skeptical of unsolicited calls or emails requesting personal information.

Monitor Financial Accounts:
After a disaster, closely monitor your bank statements and credit reports for unusual activity. Set up transaction alerts with your bank to catch fraudulent charges as soon as they happen.

Report Suspicious Activity:
If you encounter a scam or believe you’ve been targeted by fraud, report it immediately. Key reporting resources include:

• FEMA Disaster Fraud Hotline: 1-866-720-5721
• Federal Trade Commission (FTC): www.ftc.gov

FAQs on Post-Hurricane Scams

Q1: How can I verify if a charity is legitimate after a hurricane?
A: Use websites like Charity Navigator or BBB Wise Giving Alliance to confirm the charity’s legitimacy. Never donate based on unsolicited emails or calls, and always verify the organization’s contact information directly through official sources.

Q2: What steps should I take if I suspect a contractor scam?
A: Avoid contractors who demand large upfront payments or refuse to provide written contracts. Verify their credentials through your local Better Business Bureau or consumer protection office, and report any suspicious behavior to local authorities.

Q3: How do I report price gouging in my area?
A: Document the inflated prices with receipts and report it to your state’s Attorney General’s Office. Most states have laws prohibiting price gouging during declared emergencies.

Q4: What are the signs of a phishing scam related to disaster relief?
A: Phishing scams often ask for personal information, such as bank account or Social Security numbers, or direct you to click on unfamiliar links. Be cautious of unsolicited emails and verify all disaster relief communications through official channels.

Conclusion

As the Southeast begins to recover from the devastation of Hurricane Helene, it’s essential to stay vigilant against the growing number of post-hurricane scams. Scammers exploit the chaos of disaster recovery, using tactics that range from fake charity solicitations to fraudulent contractors and phishing attacks. By staying informed, verifying all claims, and reporting any suspicious activity, we can work together to prevent fraud and protect ourselves and our communities.

For more information or to report fraud, you can contact:

• FEMA Disaster Fraud Hotline: 1-866-720-5721
• Better Business Bureau: www.bbb.org
• National Center for Disaster Fraud (NCDF): www.justice.gov/disaster-fraud​(Justice)​(SC Consumer)​(Consumer Advice).

Let’s not allow these scams to compound the hardships of disaster recovery. Stay informed and protect your loved ones from those looking to profit from tragedy.