Visit the National Safety Council’s website and you’ll find a long list of tips on staying safe during the holiday season. It recommends, for example, that you get a good night’s sleep before departing on a holiday road trip. It also recommends turning off all holiday lights and decorations before going to bed at night.
Absent from the NSC’s “Holiday Safety” page are warnings about a common – and potentially costly – holiday safety risk: Shopping scams. Recent statistics show that 80% of U.S. consumers say they have been targeted by the type of scams that are common during the holidays. Last year, the average amount lost by scam victims was $1,500.
As consumers begin their holiday shopping this year, they face the risk of encountering scams that involve new levels of complexity and sophistication. Scammers now have artificial intelligence at their disposal, opening the door to a range of new capabilities for luring in unsuspecting shoppers. With AI, scammers can create more convincing visuals, more personalized schemes and communication that seems more authentic.
The following are some tips consumers can use during the upcoming holiday season to navigate the AI-driven scamming landscape.
Be Cautious of Online Scams
Experts expect consumers to spend more than $240 billion shopping online this holiday season. Scammers hoping to get some of that spending utilize a variety of online schemes, many of which use AI-powered tools to improve the look of websites or messages in ways that give them an air of authenticity.
Fake online coupon sites take advantage of consumers’ quest for the best online deals. They offer coupon codes for popular e-commerce sites that consumers can obtain with a simple mouse click. What many shoppers discover too late, however, is that clicking on the link installs malware on their computer or leads them to a fake website that steals their personal information. The best practice is to avoid these sites and connect with e-commerce sites directly to explore coupon options.
Third-party sites offering discounted gift cards are also a popular scam during the holidays. Studies show that certain segments of the consumer market spend more than half of their holiday shopping budget on gift cards. Those looking for deals can be misled by discount sites that steal credit card information and other personal data. AI provides scammers with tools to improve the quality of the sites, empower chatbots, and personalize their messaging.
With charitable giving being at its highest during the final two months of the calendar year, fake charity websites are also a popular holiday scam. Scammers commonly use social media ads or text messages pretending to represent legitimate charities to direct people to bogus websites where they solicit donations.
AI-powered chatbots make it easier for scammers to operate fake charitable sites and make them appear legitimate. To avoid being victimized, those seeking to donate during the holidays should seek out official sites directly.
Confirm the Authenticity of Digital Messaging
Smishing uses text messages to lure shoppers into scams by pretending to be legitimate companies seeking payment or personal data. The increase in shopping during the holiday season increased consumer text messaging, giving scammers more opportunities to blend in with the increased volume of texts.
Package delivery scams are a common smishing scheme rolled out during the holidays. The messages report a lost package, missed delivery, or package reroute, then offer the recipient a link for additional information. Once clicking through, recipients are asked to provide payment information, passwords or other sensitive information.
AI allows scammers to make smishing schemes more personalized, making them more believable. To avoid becoming victims, those receiving messages should follow up by calling official phone numbers on company websites rather than clicking on links included in text messages. Checking the status of deliveries through links provided in official order confirmation emails can confirm the existence of a delivery issue.
Rely on Secure Payment Methods
Calls or text messages requiring alternative payment methods can often indicate a scam. To avoid the fraud detection systems used by global financial organizations, scammers will request that payments be made with cryptocurrency, gift cards, or peer-to-peer platforms like Zelle, Venmo or CashApp. By using AI-powered chatbots to facilitate personalized exchanges, scammers can gain the trust of their victims, making it more likely that they will agree to alternative payment methods.
Consumers should avoid any payment requests that do not allow for secure payment methods, such as credit or debit cards. Using virtual credit cards can increase security during holiday shopping by enabling consumers to use a unique card for each online purchase. Even when scammers get unauthorized access to virtual card numbers, they cannot use them to make multiple purchases.
Staying safe during the holidays — from shopping scams or any other threat — starts with awareness. Consumers can avoid the most common shopping scams by understanding what they involve, being on the lookout for them, and steering clear of anything that seems suspicious. Those who are extra vigilant this holiday season can navigate the AI-driven scamming landscape without becoming a victim.
