Holiday Cyber Scams: Common Types & How to Avoid Them This Season
The holiday season is here, bringing joy, celebrations, and, unfortunately, an increased risk of holiday cyber scams. With online shopping spiking and charitable giving on the rise, scammers see this as a golden opportunity to deceive unsuspecting shoppers and donors. Understanding how these scams work is crucial to safeguarding your finances and personal information. This guide will walk you through some common holiday scams, how they operate, and essential strategies to keep your information and finances secure.
Why Holiday Cyber Scams Spike
Due to heightened online activity and increased spending, the holidays have become a perfect time for scams. Below, we'll explore why scammers focus on this time of the year and examine recent incidents that highlight the critical need for strong cybersecurity during the holidays.
Why Scammers Target the Holidays
Holiday scammers ramp up their efforts because this season creates more opportunities for fraud. Consider these statistics:
Increased Online Shopping and Spending: With many people shopping online for holiday gifts, scammers create fake websites, pop-up ads, and emails mimicking reputable stores to lure victims. In 2023, online holiday sales in the U.S. alone reached $233 billion and a 10.1% increase is expected this coming holiday. Online holiday shopping is estimated to account for 26% of total annual U.S. retail sales, as millions of people use e-commerce sites and social media for gift ideas and deals.
More Charitable Giving: The U.S. saw over $557 billion in charitable donations in 2023, with a significant portion given during the holiday season. The season’s generosity makes people vulnerable to charity scams. Scammers may create fake charity sites to exploit those looking to donate to a good cause.
Recent High-Profile Holiday Attacks
The risk of holiday cyber scams is real, and high-profile incidents serve as reminders of the need for vigilance. For example:
The Ohio Lottery Cyberattack: A cyberattack on the Ohio Lottery, which occurred on Christmas Eve last year, exposed the personal data of 538,959 individuals, including names, personal identifiers, and Social Security numbers.
The Downfall Game Christmas Day Breach: Hackers breached a popular gaming platform on Christmas Day, stealing data from thousands of users in a single attack.
Common Types of Holiday Cyber Scams
Not all scams are the same, and understanding their variations can help you avoid becoming a victim. Here, we’ll cover the most prevalent holiday scams—from fake shopping sites to delivery notifications—and offer tips to recognize them.
Online Shopping and Delivery Scams
Online shopping scams are among the most common holiday cyber scams, targeting the massive increase in online orders and delivery notifications.
Fake Websites and Lookalike Stores: In 2023, cybercriminals created between 4,000-5,000 fake websites to impersonate major brands during the holidays, aiming to steal customer information and payments. A common tactic in these scams is the Punycode attack, which exploits Unicode characters that closely resemble standard ASCII letters. This allows attackers to create URLs that look nearly identical to trusted sites, tricking users into sharing personal information, payment details, and login credentials under the assumption they are on a legitimate site.
Missed Package and Delivery Scams: Package delivery scams exploit the tracking updates you get when shopping online. You might receive messages claiming you need to pay a delivery fee or customs tax. If you respond or call the number provided, you could be asked to verify your account or credit card info, which scammers can then use to steal money or make unauthorized charges. This type of scam is expected to rise as online holiday sales soar.
Brushing Scams: Brushing scams affect millions of Americans annually by sending fake packages to unsuspecting consumers as a way to boost seller ratings fraudulently. In a brushing scam, dishonest sellers use personal information, often sourced from data brokers or the dark web, to create fake accounts that "buy" their products. These fake purchases give them “verified buyer” status, allowing them to post numerous positive reviews that make poor-quality items appear popular and trustworthy.
Phishing and Social Media Scams
Phishing attacks are another popular strategy for holiday scammers, who often impersonate major brands and popular seasonal promotions.
Phishing Emails from Trusted Companies: These emails look like they’re from legitimate companies, often using fake logos and email addresses that resemble the real ones. They aim to steal login credentials or personal information.
Social Media Ads for Fraudulent Items: Ads on platforms like Facebook and Instagram often promote counterfeit or nonexistent goods, leading to huge losses from holiday shopping scams.
Fake Online Giveaways and Secret Santa Scams: These emails look like they’re from legitimate companies, often using fake logos and email addresses that resemble the real ones. They aim to steal login credentials or personal information.
How Holiday Scams Operate
Holiday scammers use various tactics to deceive people, such as capitalizing on enticing “too-good-to-be-true” deals. Many fraudsters pose as trusted companies, creating a false sense of legitimacy to catch shoppers off guard.
Key Cybersecurity Risks During the Holidays
Cybersecurity risks are heightened during the holidays, with scammers relying on tactics such as:
Public Wi-Fi Hacking: Reports indicate that about 50% of Americans use public Wi-Fi to make financial transitions despite security risks, making them targets for data interception.
Shoulder Surfing and Card Skimming: These are techniques used by scammers to steal personal and financial information in public spaces. Shoulder surfing involves watching people as they enter sensitive data, like PINs or passwords, often from a nearby position or with hidden cameras. Card skimming, on the other hand, uses hidden devices on card readers to capture card details during transactions, commonly at ATMs or gas pumps. Both techniques aim to gather information discreetly for fraudulent use.
How Holiday Phishing Harms Businesses
Businesses face heightened cyber threats during the holidays as well. Cyber attacks can damage consumer trust and impact revenue, especially for retail businesses. Meanwhile, larger retail corporations are the top target of cyber attacks, exposing vulnerabilities in e-commerce.
5 Essential Tips for Staying Safe Online During the Holidays🎄
Keeping your information safe is of paramount importance. Here are some effective strategies for identifying phishing scams, verifying retailers, securing your accounts, and protecting your devices.
1. Recognize and Avoid Holiday Phishing Attacks
Phishing attacks are especially common during the holiday season, as scammers take advantage of increased online shopping and seasonal promotions. Be extra cautious with emails that appear to offer holiday deals or urgent requests. Never click on unfamiliar links or open suspicious attachments. Learning to spot phishing attempts can be a crucial step in protecting yourself during the busy shopping season.
Email Encryption: Encrypt emails containing sensitive information about holiday shopping or gifts to keep your personal details safe from prying eyes.
Multi-Factor Authentication (MFA): Enabling MFA on your accounts provides an added layer of security, ensuring that even if scammers obtain your password, they still can’t access your account.
2. Verify Holiday Websites and Retailers
During the holidays, scammers often create fake online stores to lure in unsuspecting shoppers. Always verify the legitimacy of online retailers before making a purchase. Look for "https" in the URL, which indicates the site is secure, and research any unfamiliar stores for reviews and customer feedback.
3. Secure Your Holiday Shopping Accounts
With the increase in online shopping during the holiday season, it’s crucial to use strong, unique passwords for each retailer you shop with. A password manager can help you keep track of different logins, and consider changing your passwords regularly, especially if you notice suspicious activity on your accounts.
4. Use Safe Payment Methods for Holiday Purchases
Credit cards offer better fraud protection than debit cards, so use them for your holiday shopping whenever possible. Monitor your account statements closely to catch any unauthorized charges quickly and dispute them before they become bigger issues.
5. Protect Your Devices and Network
As you shop for gifts and make online transactions, it’s essential to protect your devices and home network. Install antivirus software and enable a firewall to block potential threats. Avoid shopping or banking on public Wi-Fi, and ensure your home network is secured with a strong password. Regularly back up your data to safeguard against potential malware or ransomware attacks that could ruin your holiday season.
What To Do if You’ve Been Scammed
If you find yourself a victim of a holiday scam, quick action can make all the difference. Here are key steps to protect your finances, report scams, and recover your information.
Update Your Account: If you realize you’ve been scammed, act swiftly by contacting your bank, changing passwords, and securing any compromised devices.
Alert the Authorities: Reporting scams to the Federal Trade Commission (FTC) or similar agencies can help prevent future scams.
Seek Support from Digital Security Solutions: Professional cybersecurity services can offer tools like email encryption, phishing protection, and data protection services to protect you from holiday cyber scams.
Stay One Step Ahead This Holiday Season with Cornerstone Technologies
The best holiday gift you can give yourself is peace of mind. Protect your personal information and finances with digital security measures from Cornerstone Technologies. Enjoy the holiday season with confidence by safeguarding against holiday scammers and cyber threats.
At Cornerstone, we proudly serve organizations of all sizes with a wide range of services, including managed IT services, server and network support, cloud solutions, managed print services, and more. Contact us today and let us help secure your digital space so you can focus on what truly matters this holiday season.
