How to Avoid Online Holiday Shopping Scams

Fraudsters never take a holiday, so it’s vital that you stay vigilant to safeguard your personal and financial information—especially during the holiday season, when most of us use our credit and debit cards to buy gifts and make other purchases. Here are smart tips for buying online confidently any time of year. 

6 red flags when shopping online

We’ve all been there: browsing online and an amazing deal pops up. The fear of missing out kicks in and we get the urge to buy it before it’s gone. But surrendering to #fomo can cost you—fraudsters often craft offers on popular “must-have” gifts during the holidays to entice you to click without thinking it through. 

Use these tips to avoid fraud when shopping online:

• If a deal seems too good to be true, it probably is. If most retailers are selling a coveted product for a similar price but one site is offering it for a drastically reduced price, it’s probably best to steer clear. Stick with trusted retailers you can count on for good business practices, quality and your desired delivery date.
• Verify that social media ads and offers are authentic. Scammers target shoppers with social media ads and offers for products that align with your browsing history. Proceed with caution.
• Be wary if a seller asks you to pay over the phone. Legitimate retailers use secure online checkout systems designed to protect you from fraud. If you’re asked to pay by phone, or share other personal information by phone, it may be a scam. For more tips read our blog, Ten Simple Steps to Safeguard Identity Online and Off.
• Be cautious of sellers who pressure you to take action. Don’t respond to unexpected texts and sales emails that say it’s urgent to act now, especially when they’re from companies you don’t shop with.
• Look out for messages about delayed deliveries. A popular scam is texts and emails that appear to be from familiar carriers like FedEx and UPS. The messages claim your package can’t be delivered until you verify payment or shipping details. Don’t click on any links or reply. Instead, contact the original seller directly from their website or customer service number. Read our blog Protect Yourself from Account-Draining Computer Takeover Scams for related tips.
• Be cautious of requests to “verify your order.” Bad actors can look like legitimate companies you do business with. For example, is that really Amazon texting you about an order? Remember, they communicate through their app. Don’t click on or respond to texts, emails or calls seeking to verify your order. Instead, contact the seller using contact information you already have—never what’s provided in the message.

6 tips for safer online shopping

You can safely shop online. Follow these tips to verify if a seller, offer or request is legitimate before you hand over your debit or credit card information.

• Confirm the business is legitimate. Check to see if they have a physical address and phone number. Here’s a quick research hack to ensure a seller is legitimate before you start your order: Type “Is (insert business name) a legitimate company?” into your web browser or search engine. The results should make it clear.
• Check their reputation and reviews. Look for complaints on the Better Business Bureau’s website, with TrustPilot.com and explore peer-to-peer reviews to ensure they’re a legitimate, respected business.
• Verify the website address is authentic. Never click a link you unexpectedly receive in a message of any kind. Instead, search for the website address yourself and make sure it matches the company’s official site. If you’re uncertain, use a free online website reputation checker like URLVOID to verify.
• Look for the padlock icon to indicate a secure connection. The little lock icon next to the website address in your internet browser window lets you know any data you submit between you and the site is encrypted and secure. Pro tip: Bookmark your favorite retailers’ websites for future purchases. 
• Shop your local brick and mortar stores. Remember there are lots of offline deals, too. Explore locally owned shops to support your community and discover goods and gifts you might not discover online.
• Use strong passwords and frequently update your devices. The time of simple passwords has passed. Instead, choose a complex password with at least 14 characters and a mix of upper-and lower-case letters, numbers and special characters. It’s critical to keep your devices (smartphone, laptop, desktop) updated with the latest antivirus software and keep your computer’s operating system and browser current. Your browser provider and device manufacturer continually push out patches to fix known vulnerabilities so take advantage of their heavy lifting.   

Keep educating yourself to prevent fraud

Unfortunately, fraud is only getting more sophisticated with the evolution of technology like generative AI, which fraudsters are exploiting to be even more convincing. That’s why it’s important to educate yourself on an ongoing basis. In addition to the tips above, check out our Security and Fraud Prevention Center for more tips on everything from how to set debit card controls to keeping your devices (phone, laptop, desktop) updated.

If you are ever concerned you may be a victim of identity theft, read our blog What to Do if You're a Victim of Identity Theft to learn the action steps to take. If you’re a Banner client, contact your branch team, call us at 800-272-9933 or send us a secure message from within online banking.