Financial fraud takes place throughout the year, but it is particularly common around the holiday season. With a significant increase in online shopping and deal-searching, consumers are naturally more vulnerable to cybersecurity threats.
According to Shred-it's second annual International Fraud Awareness Week Report, 46% of Americans believe their security habits make them vulnerable to fraud.
Consumers have to be very careful to protect their financial information during the holidays.
Over half of respondents (51%) admitted to reusing passwords and PINs for multiple accounts, and 21% said they have shared those login details with friends and family members. With repeat passwords, a cybercriminal only needs one set of login details to access multiple accounts. This could lead to online banking fraud, unauthorized credit card purchases, and more.
A new McAfee study shows phishing texts and emails are the leading cause of fraud among the holidays, second only to robocalls. A phishing email is designed to look like it is being sent from a legitimate company. The email contains a link that goes to an fraudulent website, but a site that looks almost identical to the legitimate company. The fraudulent website will ask for login credentials, just like the authentic website. Once a user inputs the information, the hacker can use those login details across many different platforms.
Here are some tips to avoid fraud during the holidays:
- Use unique passwords. If you do not want to remember unique passwords for every website you use, at least create unique ones for your online banking profile, PayPal account, credit card account, and other accounts linked to your financial information.
- Use a secure browser when shopping online. Most internet security platforms provide this as part of their service package.
- Only shop with sites or stores you trust. Verify that you are on a store's actual website, and trust your gut if something seems suspicious.
- Monitor your credit card and bank accounts closely. Review your transactions on a frequent basis. Report any fraudulent or questionable charges as soon as you notice them.
- Set up email or text alerts with your credit card company so you receive notice of any purchase with your card. If you didn't make that purchase, contact your issuer immediately.
- Never give your financial or personal information over the phone to someone that initiated the call. Only give information on a call which you placed and are sure you are speaking to the desired company.
- Be careful who you trust your login information to, even if it is a close friend or relative.
