Tis the Season to Stay Safe from Frauds and Scams

How to avoid identity theft, privacy threats, and online scams during the holidays

When everyone’s opening gifts this year, you want the surprises to be pleasant, like the look on a loved one’s face when you give them the exact thing they wished for. You don’t want unpleasant surprises, like discovering you’ve been a victim of identity theft. (U.S. consumers lost $56 billion to identity fraud in 2021.) That’s why it’s so important to protect your personal information and carefully guard your privacy while shopping online during the holidays.

Holiday shopping in the U.S. is projected to grow as much as 7.5% from last year. Although this may not be as much as previous years, bad actors will likely be in as high of a supply as always.

With people spending more money online, scammers are looking for new opportunities to defraud consumers. This year it’s especially important to stay alert. Supply-chain issues could make certain gift items harder to find, so you might have the impulse to use unfamiliar vendors, or click on tempting ads, if they claim to have an item that others don’t. You could wind up getting more than you bargained for.

And the risks aren’t just in using your credit card to purchase a handbag online for Aunt Helen.

Here are some of the most common scams to look for this holiday season, along with our advice on how to best protect your privacy and identity.

The problem: Online shopping scams

At this time of year, scammers work overtime impersonating legitimate retail businesses. They might send fraudulent messages through social media, email, or text, claiming that you’ve been locked out of your account, or you need to update your password, or you’re being refunded for a purchase. If you respond, you could wind up unwittingly giving these fraudsters personal information like your name, account password, or credit card number. Or you might have malware secretly downloaded to your device.

Our advice: Shop only at secure sites. Learn if your info is compromised.

Instead of clicking on links in text messages, social media, or emails, navigate directly to secure websites—the URL should begin with “https” and have a lock symbol to the left—to do your shopping and manage your accounts. Buying from a site for the first time? Research the seller and check their reviews. To find out if your information has been compromised, use a service like IDX Privacy CyberScan. It’s a surveillance engine that searches the internet and the dark web (a part of the web where cybercriminals buy and sell consumer data), alerting you if your data has been detected.

The problem: Fake ads

Wow, that ad is promoting the latest big-screen TV for an unbelievably low price, and I can’t find that TV anywhere else. It’s from a retailer I know, so why not check it out? Here’s why you might not want to: Fake ads and phony offers through social media, emails, and websites pop up like ugly holiday sweaters at this time of year. That offer might look like it’s from a retailer you trust, but it could be fake. Clicking on a scam link could plant trackers or malware on your device. And if you enter your personal data on a scam site, it could affect your privacy and lead to identity theft.

Our advice: Be cautious about clicking. Install a tracking blocker.

Before clicking, read the offer or ad carefully, looking for spelling mistakes or anything else that seems unusual. Hover your cursor over the link to view the URL, which will appear either in a pop-up or in the lower-left corner of your browser window. Finally, install a tracking blocker like the advanced one offered by IDX Privacy, to make sure that the websites you visit don’t collect and sell your personal data.

The problem: Credit card theft

As convenient as it is to save your credit card information on the websites of your favorite retailers, you run the risk of data breaches in which scammers can steal your card’s data. The Federal Trade Commission reported receiving 389,845 credit card fraud reports in 2021.

Our advice: Don’t save your card info. Monitor your credit.

Manually enter your card information with every online purchase, or use a payment platform with extra security like Apple Pay, Google Wallet, or PayPal. Finally, use credit and identity monitoring to keep a watchful eye on your credit. Among other services, IDX Privacy offers 24/7 credit and identity monitoring, which alerts you to any suspicious financial or identity-related activity in your name. The IDX Identity Premier plan includes tri-bureau credit monitoring and Credit Lock by TransUnion®.

The problem: ID theft from smart home devices

Smart devices like voice assistants, smartwatches, and home security systems make great gifts. However, because they’re connected to the internet, they could give scammers access to your personal information.

Our advice: Secure the device. Use best password practices.

Install antivirus software on the device if possible, keep the device’s operating software up to date, and make sure you’ve created a strong and secure password for your home’s wireless router. (For best password practices, use a password manager like the advanced version offered by IDX Privacy. And use IDX Password Detective to see if a current password you’re using, or thinking about using, has been compromised on the dark web.)

The problem: Scams involving delivery tracking

If you’re anticipating a package delivery, be cautious about emails or text messages claiming to be from shipping carriers offering a status update on a package. These could be from hackers looking to access your identity or plant malware on your device.

Our advice: Avoid unknown links. Go to the shipping source.

As with ads and offers, be careful about clicking on links from unverified sources. If you want to track your packages, go directly to the website or app of the trusted vendor or shipping carrier.