On 11/22/23, the U.S. Department of the Treasury’s Office of Cybersecurity and Critical Infrastructure Protection office released an advisory providing tips to consumers to avoid becoming the victim of cyber or online holiday scams. The rise of Artificial Intelligence has allowed cybercriminals to automate malicious phishing attacks via holiday scams. The advisory states that: “As cybercriminals leverage Artificial Intelligence to learn and adapt in real-time, consumers must remain vigilant and take proactive measures, especially during the holidays which often brings an uptick in crimes. To avoid becoming a victim of fraud, the advisory provides steps individuals can take to protect themselves”.

How to Avoid Holiday Scams

1. Buy only from reputable merchants.
2. Stay informed of common scamming tactics, share your knowledge with others, and remain skeptical of unsolicited calls, emails, and texts, especially those creating a sense of urgency.
3. Exercise caution when receiving unexpected phone calls and emails from your financial institutions, unsolicited texts, and embedded links. Confirm the legitimacy of requests by directly contacting the requesting entity through official channels.
4. Practice safe online behavior. Be cautious about the information you share online. Avoid oversharing personal details on social media platforms.
5. Don’t be pressured to purchase an item or pay for a service quickly. Take time to think, research, and talk to someone trusted. Fraud and phishing scams often capitalize on creating a sense of scarcity or fear of missing out. Legitimate businesses will give you time to decide.
6. Regularly monitor your financial and card credit statements for unauthorized or suspicious transactions. Report any discrepancies to the credit card or financial institution immediately.
7. If an online deal looks too good to be true, it likely is. Be suspicious. Scammers often offer products at significantly reduced prices. If a luxury item or an electronic device is offered at an extreme discount, it’s likely counterfeit or will never be delivered.
8. Don’t give out personal or account information to anyone who calls.
9. Don’t rely on caller ID. Criminals can fake their identities and locations on phone calls.
10. Never pay someone who insists you pay via a gift card or using a money transfer service. Also, never deposit a check and then send money back to someone.
11. Use a credit card to pay for online purchases. As required by law, credit card companies provide a fraud liability guarantee which limits liability for unauthorized charges to $50 ($0 if the card was stolen and the card company is notified prior to purchases being made).
12. Enable Two-Factor Authentication (2FA). Strengthen the security of your accounts with 2FA, making it harder for attackers to gain access.
13. Never allow permissions to an unknown app and use different passwords for each downloaded app.
14. When using money transfer services, be certain to validate who you’re sending money to and their contact details.

Ten Ways Scammers Catch You Through Holiday Scams

1. Gift Scams – Popular, sold-out items (for example, a toy unavailable in local stores and online) suddenly appear in ads. If an item is sold-out in box stores and reputable online stores you frequent, then the websites with availability are likely scams meant to steal your money, your personal information, or your credit card.
2. Vishing, Phishing, and Smishing Campaigns – Scammers use fraudulent phone calls, emails, websites, or texts to trick you into revealing private information, clicking links, or opening attachments. A trusted entity is often impersonated, like a bank or government agency. Watch out for unexpected phone calls and emails from your financial institutions, unsolicited texts, and embedded links. Don’t click on any links in email, text, or advertisements!
3. Purchase Fraud – Online shopping provides criminals an opportunity to trick you into paying for goods or services that either don’t exist or whose quality is sub-standard to what was advertised.
4. Holiday Employment Scams – In online ads, scammers may pretend to be employers from recognized companies. In the posted help-wanted ad, you’re instructed to follow links to submit an application. The personal information you provide can be used for identity theft.
5. Credit Card Scams – Unrecognized charges appear on your monthly statement. In a quest to steal credit cards, thieves may employ: • Application Fraud – Thieves steal mail, dig through trash or skim cards to gather personal details so they can apply for a credit card in your name. • Counterfeit Cards – Your data is stolen from fake card readers at a gas station or ATM. With the stolen data, thieves can create a duplicate card for illegal use. • Card Not Present (CNP) Fraud – Credit card numbers are stolen through hacking or phishing and thieves then buy items online, by phone or through the mail. • Account Takeover – Pretending to be you, a fraudster can get a new credit card issued to them and sent to their address.
6. Social Media Scams – While on social media, beautifully crafted items repeatedly appear in your feed. After seeing the item appear for days or possibly weeks, you order the item. When the item arrives it doesn’t resemble what you ordered, or it doesn’t arrive at all.
7. Charity Scams – The holiday season is when many people give to their favorite charities and scammers are targeting the season’s generosity by creating fraudulent charities. Only donate to reputable and trusted charities with a history of charitable distribution.
8. Fake Mobile Apps – Downloaded apps have been found to record your screen when banking or deposit malicious trojan software. Once installed, these apps ask for extensive permissions – just don’t click the links.
9. Phishing Campaigns – Scammers use fraudulent websites, emails, and texts to trick you into clicking links and opening attachments to load malicious software. Don’t click on any links in email, text or advertisements!
10. Romance Scams – The holidays are when many look for a partner and are also a time when romance scammers heighten their activity. According to the Federal Trade Commission, as many as 25 to 30 percent of dating site members registering each day are doing so to perpetrate scams. Don’t feel pressure to send money to someone on a dating website.

What Can I do if I get Scammed?

If you are a victim of a holiday scam or a scam that has occurred any time of the year, these are your options:

• Contact the merchant. The merchant may have a money-back guarantee in the event of a scam or fraud.
• Alert your credit card company. The first thing to do if you detect illegal activity is contact your credit card issuer.
• Notify the credit bureaus. Place a fraud alert on your credit record with one of the three main credit bureaus (Equifax, Experian, or TransUnion).
• Consider freezing your credit report. If you have reason to believe your personal information has been compromised, you can elect to “freeze” your credit report.
• File a complaint to the FBI’s Internet Crime Complaint Center.
• File a report with the Federal Trade Commission.

Scammers are using Artificial Intelligence to deceive people

Scammers ramp up their efforts during the holiday season and are using artificial intelligence to obtain personal financial information via holiday scams. Everyone needs to proceed with caution and stay vigilant!