The holiday season can be joyous, but can also be a time for fraud.
The following is from Umpqua Bank.
Tips on how to avoid popular scams
As the holiday season swings into full gear, shoppers need to maintain their vigilance in guarding against fraud. While consumers navigate the tighter budgets this year due to higher inflation, fraudsters are likely doing the same, and will be extra desperate – and motivated – to take advantage of the seasonal rush.
Holiday fraud is a big business, and criminals stand to generate hundreds of millions of dollars in illicit gains during the shopping season. Combined retail sales for November and December could top $960 billion, according to a forecast by the National Retail Federation (NRF), an industry trade group. Fraudsters will be tapping into this volume.
Just for card payments alone, fraud rates in recent years have hovered around 7 cents per $100 of volume worldwide, according to the Nilson Report. By that measure, for every $100 billion in card volume during the holidays, thieves will siphon off $70 million.
The gap between self-perception and reality
Consumer gullibility turbocharges the payday for fraudsters. Nearly half (48%) of consumers globally are confident they can recognize a scam, according to a 2022 fraud report by Visa Inc. Yet almost three in four (73%) typically respond to terms or phrases…
