Stay Safe from Credit Card Scams This Holiday Season

Credit Card Scams During the Holiday Season

Credit card scams are proliferating during the holiday shopping season. Fraudsters deploy tactics like using credit card skimming machines to send fake messages about fraudulent charges. Visa's global head of fraud services, Michael Jabbara, told FOX Business that during this time, "fraudsters try to capitalize on people looking for a great deal by creating fake websites where favorite brands seem to be sold at unbelievable prices."

In the past four months, Visa identified a 284% increase in fake and spoofed merchant websites compared to the prior four-month period. Jabbara added that these websites sometimes look identical to the legitimate ones, making it crucial for consumers to independently verify the website they are on.

Scam Merchants Posing as Legitimate Charities

There has been a significant increase in scam merchants posing as legitimate charities. Some create spoofed versions of legitimate charities, while others make up fake charities with plausible names. Consumers need to be cautious and not fall for these scams.

They also need to be wary of text messages claiming there has been a fraud charge on their credit card. Ted Jenkin, co-founder of oXYGen Financial, warned that credit card companies will never ask for passcodes or other information via text. The best thing to do is to pick up the phone and call the 800 number on the back of the card to validate the charge.

Job Scams and AI

Job scams surged by 118% in 2023 due to AI, according to a watchdog group. Criminals use social media platforms like Instagram to solicit consumers and convince them to share their debit card or bank account information to withdraw fake check deposits.

The American Bankers Association has warned about "card cracking," where consumers respond to online solicitations for quick money. Criminals deposit worthless checks using mobile deposit and withdraw the funds at an ATM immediately.

ATM Skimmer Devices

Another thing consumers need to be wary of are ATM skimmer devices. These can be inserted in the card reader or installed within the terminal. Skimmers can also fit over the card reader or be placed along exposed cables at freestanding ATMs.

Fraudsters use pinhole cameras or keylogging keypad overlays to record a customer's PIN entry or keystrokes. Securities attorney Andrew Stoltmann has dealt with skimming, phishing, and identity theft over the years.

"One of the most common scams is people receiving a text apparently from UPS or FedEx. They click on it and either give access to their phone or are asked to confirm their credit card information. This is particularly convincing during the holiday season when many people are sending packages," he said.