12 Fraud Prevention Tips to Keep You Safe this Season

The holiday season is a time for joy, celebration, and giving. Unfortunately, it’s also a time when fraudsters ramp up their efforts to take advantage of the shopping rush and the distractions of the season. At Community Banks of Colorado, we want to help you protect yourself and your finances during this time. Here are 12 practical tips to prevent holiday fraud, and ensure your holidays remain merry and fraud-free.

1. Use Traceable Payment Methods

When shopping online or in-store, use secure, traceable payment methods like Apple Pay or Google Pay when possible. These digital wallets offer an extra layer of security through encryption and tokenization, helping to keep your financial information safe. Plus, many of these platforms offer built-in fraud protection, reducing the risk of unauthorized transactions. As a rule of thumb, avoid sending payments through non-secure platforms or using cash when digital alternatives are available. And when tap-to-pay is available in-store, opt for that option rather than inserting your card. That way, it’s less likely the information on your card’s magnetic strip will be compromised.

2. Beware of Phony Delivery and Tracking Links

During the holiday season, it’s common to have packages coming and going, which is exactly what scammers count on. Be extra cautious about unsolicited text messages or emails claiming to be from delivery services. They often contain links to fake websites designed to steal your personal information. Instead of clicking on links from texts or emails, visit the official website of the carrier or retailer to track your packages. Be on the lookout for poorly written messages or suspicious-looking web addresses, as these are often indicators of fraud.

3. Create Unique Passwords for Every Account

It can be tempting to reuse passwords across multiple accounts for convenience, but doing so makes it easier for hackers to access your information. Make sure each account you use, whether for banking, shopping, or social media, has its own unique password. Use a combination of letters, numbers, and special characters to strengthen your security. If you’re worried about remembering multiple passwords, consider using a password manager to keep track of them safely.

4. Check ATMs and Card Readers for Skimmers

Skimming devices are small gadgets that thieves attach to ATMs or point-of-sale systems to steal your card information. They are often hard to spot, but with a few precautions, you can avoid falling victim. Before inserting your card into any ATM or card reader, check for anything that looks out of place or loose. If the card slot feels wobbly or if it’s hard to push your card into the reader, it could be a sign of tampering. Whenever possible, use contactless payment options, such as tapping your card or phone, to reduce the risk of skimming.

5. Avoid Shopping on Public Wi-Fi

Public Wi-Fi networks are a common target for hackers, especially in busy shopping areas. Avoid entering sensitive information, like credit card details or passwords, while connected to public networks. If you must shop online while on the go, consider using a virtual private network (VPN) to encrypt your connection and keep your data safe. Or, wait until you’re on a trusted Wi-Fi network before making any transactions.

6. Be Cautious on Person-to-Person Marketplaces

Facebook Marketplace and eBay can be great for finding vintage items, furniture, and other gifts at discounted prices. However, there comes a risk of being scammed when dealing directly with individual sellers rather than a certified retailer. First, ensure that your seller has several positive reviews. Next, take note of how they’re communicating. If they are pressuring you or ask for a deposit, it’s likely a scam. If you decide to buy a product, use secure payments methods like a credit card or PayPal, which is better designed for business transactions. Scammers will often ask you to use person-to-person payment methods like Zelle or Venmo, in which case, you may not be able to get your money back in the event you don’t receive your goods.

7. Keep Your Devices Up to Date

Cybercriminals often exploit outdated software to gain access to your personal information. Keeping your devices up to date with the latest software and security patches is one of the simplest ways to prevent attacks. Set your devices to update automatically so you don’t miss critical security improvements. This applies not just to your smartphone and computer but also to any other smart devices you use for shopping or banking, such as smartwatches or voice assistants.

8. Be Wary of Too-Good-to-Be-True Deals

If a deal seems too good to be true, it probably is. Scammers often create fake online stores or phishing emails offering heavily discounted products to lure in unsuspecting shoppers. Always verify the legitimacy of a website before making a purchase. Look for secure websites that begin with “https” and check for the padlock icon in the address bar. Stick to well-known retailers or verify new sellers by reading reviews and checking their social media presence.

9. Limit What You Share Online

During the holiday season, you may be inclined to share your festive plans and purchases on social media. However, oversharing personal information can make you a target for fraudsters. Limit the amount of personal information you post publicly, especially details like your home address, travel plans, or photos of expensive gifts. Cybercriminals can use this information to impersonate you, hack your accounts, or plan burglaries while you’re away.

10. Be Cautious with Charitable Donations

The holidays are a time of giving, and many of us like to donate to charities during this season. Unfortunately, scammers often pose as charitable organizations to steal money from kind-hearted individuals. Before donating, verify that the charity is legitimate by checking with organizations like Charity Navigator or the Better Business Bureau. Avoid giving donations over the phone or email unless you’ve initiated the contact, and always make your contributions through the charity’s official website.

11. Enable Two-Factor Authentication (2FA)

Two-factor authentication (2FA) adds an extra layer of security to your online accounts by requiring two forms of identification before you can log in. This could be a combination of your password and a text message verification code or a biometric factor like Face ID. Many online services and financial institutions, including [Bank Name], offer 2FA as an added security measure. Enabling it will help protect your accounts even if your password is compromised.

13. Ignore and Report Suspicious Requests for Gift Cards

Another common scam is when victims receive an email or text asking them to purchase a gift card. The message will usually say it’s urgent and claim to be from a friend in an emergency, a higher-up at your place of work, or a government employee. The scammer will then have you send them the gift card information and immediately drain the funds. If you receive a text or email like this, do not respond and report the message to your place of work if it came to a work email or phone number.

Celebrate Safely This Holiday Season

Scammers are constantly evolving their tactics, so staying informed is crucial to avoiding holiday fraud. Monitor your accounts regularly with online and mobile banking, sign up for fraud alerts from your bank or financial institutions, and regularly check for updates on common scams. Many organizations, including the Federal Trade Commission (FTC), offer resources to help you stay ahead of the latest threats. At Community Banks of Colorado, we’re committed to keeping our customers informed with regular updates and tips for protecting their financial well-being.

If you ever have concerns about your accounts or notice suspicious activity, don’t hesitate to contact Bank Midwest for assistance. We’re here to help you safeguard your financial future, today and every day. Stay safe, shop smart, and enjoy a fraud-free holiday season!