As the holiday shopping season approaches, the thrill of finding the perfect gifts can often overshadow the lurking dangers of online fraud. In 2022 alone, over $309 million was lost to fraud involving non-delivery or non-payment, a staggering figure that underscores the necessity for vigilance among consumers. The FBI, echoing warnings from various state attorneys general, has urged shoppers to maintain a heightened sense of awareness, particularly during this peak shopping period when thousands fall victim to scams each year.
A recent post from the FBI on social media served as a timely reminder: “Don’t let holiday excitement cloud your judgment! Always verify the legitimacy of online retailers and be cautious with unsolicited offers.” This advice is especially pertinent as more than 183 million Americans are expected to shop online or in-store between Thanksgiving and Cyber Monday, according to a survey by the National Retail Federation. With Black Friday leading the charge as the most popular shopping day, the stakes are high for both consumers and fraudsters alike.
The FBI has outlined several common scams that holiday shoppers should be wary of. Non-delivery fraud occurs when consumers purchase items but never receive them, while auction fraud involves receiving products that differ significantly from what was advertised. Alarmingly, even sellers are not immune; buyers sometimes disappear without making payments, leading to financial losses for merchants. The FBI’s Internet Crime Complaint Center (IC3) has documented this alarming trend, noting that credit card and check fraud accounted for over $173 million in losses last year alone.
The correlation between holiday shopping and an uptick in fraud is clear. An FBI field office noted that the IC3 receives a significant volume of complaints in the early months of each year, likely linked to scams from the preceding holiday season. This cyclical nature of fraud highlights the importance of consumer education and proactive measures.
In light of these threats, state attorneys general have proactively issued their own warnings. Montana Attorney General Austin Knudsen has specifically advised against using gift cards or wire transfers as payment methods, asserting that such requests are often red flags indicating a scam. In a similar vein, California Attorney General Rob Bonta highlighted the insidious nature of “gift card draining” scams, where fraudsters record PIN numbers from unpurchased gift cards. Once these cards are loaded with money by unsuspecting consumers, scammers swiftly deplete their value, leaving buyers with worthless cards.
To combat these scams, the U.S. Federal Trade Commission (FTC) has shared crucial advice for consumers. Shoppers are cautioned to be skeptical of unusually low prices, which may indicate fraudulent offers. The FTC encourages thorough research before making purchases, particularly when dealing with unfamiliar sellers. Checking reviews and consumer complaints can provide vital insights into a seller’s legitimacy.
When it comes to payment, using a credit card is recommended due to the enhanced protections it offers. Consumers can dispute charges if the products received are not as advertised or if they receive nothing at all. Furthermore, understanding the terms of sale—such as return policies, shipping costs, and restocking fees—can prevent potential pitfalls.
Practicing good cybersecurity hygiene is another essential strategy. The FBI advises avoiding suspicious links and attachments, and ensuring that e-commerce websites have secure URLs (indicated by “https”). Additionally, obtaining tracking numbers for shipments can help consumers monitor the progress of their purchases.
Fraudsters often employ sophisticated tactics, such as posing as U.S.-based sellers while actually operating from abroad. The FBI warns consumers to be cautious of sellers claiming to be authorized dealers for popular products in countries where such deals would not typically exist.
In response to rising fraud incidents, the FBI maintains a Consumer Sentinel database, which compiles complaints and is accessible to law enforcement across the nation. This collaborative effort among over 2,800 law enforcement partners amplifies the reach of consumer protection efforts.
As the holiday season draws near, the combination of excitement and caution is crucial. By arming themselves with knowledge and remaining vigilant, consumers can navigate the shopping landscape more safely, ensuring that their holiday spirit remains intact and free from the shadow of fraud.
