Last-Minute Holiday Shoppers Could Be Fraud Victims

According to experts, last-minute holiday shoppers who use credit cards could find themselves on the other side of fraudulent activity. These issues arise when consumers wait too long to purchase gifts and fall for next-day delivery promises from unsecured websites.

CNBC spoke to Paul Fabara, chief risk officer at Visa, who said, “Procrastination is, quite frankly, one of the keys to success for crooks. They assume that you’re going to fall for that last-minute offer that guarantees delivery of the product within 24 hours, or even the same day, at a discounted price.”

There is a double-edged sword to this scam. The first, per Fabara, is that consumers may not get the items they ordered, or they may not arrive as advertised.

The second comes after a website could “use your card to do a whole bunch of transactions that have nothing to do with you as [a] consumer,” Fabara said. Also, consumers should avoid using voice passwords for their accounts, as advancing AI technology can impersonate their likeness, causing them more headaches than ever before.

It is also a good idea to steer clear of websites that do not use multifactor authentication. Fabara shares that while this process requires a few extra steps besides entering a password, the security they provide is invaluable.

If you do happen to fall victim, it’s essential to contact the proper authorities right away. You can file reports with the Better Business Bureau, Federal Trade Commission, or the FBI. Also, if you have packages stolen from your home, contact your local police department.

Most importantly, ensure all web addresses begin with “https://” to ensure you have a secure connection. Also, try to avoid public Wi-Fi when shopping, where your sensitive information could be picked up and used by another person.

What is the best advice for last-minute shopping? Use cash if able, or go to a physical store where you hand your card to a clerk or self-checkout.

As for holiday donations, there are also tips for giving from the heart safely. If you receive an email from an unknown user asking for donations, it is best to avoid responding and just delete it. To take things a step further, identify the sender and do some double-checking before responding. Unfortunately, there are always some people looking to take advantage of someone’s generosity.