Visa warns of rising holiday fraud schemes in 2024 threat report

Visa, a global leader in digital payments, has urged the shoppers to exercise caution as fraud schemes surge during the holiday season.

In its 2024 Holiday Threats Report, Visa’s Payment Ecosystem Risk and Control team detailed the tactics used by the fraudsters to target money, data and account information, amid the festive preparations.

Top holiday shopping scams to be aware of:

Phishing and social engineering

The scammers impersonate trusted sources to steal personal information through emails, texts and calls. The consumers should be wary of common scams to obtain financial details, like include emails/texts about fraudulent Black Friday deals, travel discounts and package delivery updates. They also orchestrate more sophisticated frauds like digital arrests, where one is held ransom through their phone on false pretexts that can be very harrowing for the lay consumer.

The fraudsters also use real platforms to post fake job ads and demand payments for false expenses like background checks. The consumers should also be careful before donating to charities they don’t know.

Scam websites

Fake online stores and imitations of real brands are a growing threat in ecommerce. Such sites have increased with the scammers building almost legitimate looking websites and using search engines and social media ads to attract buyers with unrealistic deals on luxury or popular items, with no delivery of goods. Consequently, victims could either lose money or share sensitive information that the fraudsters use for other nefarious activities.

Travel scams

The holiday season sees many fraudulent travel websites positioned as authentic and appealing, with deals like “last-minute price drop”.  The scammers make these websites as close to real as possible and offer discounts on travel-related expenses like flights, taxis and hotels. The consumers may also receive phishing emails with fake flight cancellation notices and be asked to pay for rebooking or see advertisements with fake vacation rentals at low prices that collect deposits for non-existent properties. The consumers should steer clear of malicious festival-based apps like Santa Trackers or holiday planners that are loaded with malware. These apps can steal login and payment details once downloaded.

Theft and skimming

Always be vigilant in busy malls and public spaces that are hotspots for thieves. Common risks include physical theft or pickpocketing of cards and wallets. Beware of skimming devices fitted on legitimate ATMs or payment terminals to collect card information; always choose to tap and pay where possible.

How to stay safe

• Don’t click on links in unsolicited/unknown emails or texts.
• Check websites for legitimacy before making purchases. Genuine URLs will ideally start with “https://”.
• Use only trusted platforms or agents for travel bookings.
• Keep wallets and devices secure in crowded places.
• Report suspicious activity at ATMs or payment terminals immediately to the nearest authority.