While credit card fraud is a problem all throughout the year, the holidays bring far more opportunities for criminals to steal and cheat. This is partly because more shoppers are out and about in stores, but it’s also due to the increase in online purchases near the end of the year.
What do thieves want this holiday season? According to a 2024 Holiday Threats Report from Visa, scammers strive to use the end of the year to steal credit card information, money or even your identity. The report also highlights five key strategies fraudsters will likely use this year to further this cause, including phishing and social engineering scams, scam merchants, holiday travel scams, malicious holiday apps and physical theft.
But, some holiday threats center around the use of credit cards specifically. If you want to get through the holidays without becoming a victim of theft or fraud when you use your card for purchases, experts suggest a range of steps to keep your information safe.
Practice safe online shopping
First and foremost, you’ll want to make sure to avoid online perils when you shop for purchases using the web and mobile apps this year. The following shopping tips can help keep your information safe from hackers and thieves:
- Never shop on public Wi-Fi. Refrain from shopping on public Wi-Fi networks where hackers and thieves may be able to steal your credit card information or login details. Make sure to do your holiday shopping at home or using a VPN.
- Shop on encrypted websites. As you finish up your holiday shopping online this year, make sure you use safe, encrypted websites that begin with “https” instead of “http.”
- Use secure passwords. Use secure passwords nobody can guess. Also consider setting up multi-factor authentication for credit card accounts, bank accounts and other accounts you regularly log into.
- Use a credit card (not debit). Using a credit card for online shopping almost always qualifies you for $0 liability for fraudulent purchases made on your card, and the most you can legally be liable for is $50. The same cannot be said for debit card purchases, which can leave you vulnerable to significant losses if a thief steals money from your account.
Watch out for fake websites
The Visa study warns about fake merchants that advertise name brands or popular products at steep discounts for the sole purpose of stealing your payment data and personal information. When shoppers use these sites, the scammers get paid for products they never intend to ship as well, which leaves consumers with two problems — loss of data and having to get their money back for items they never received.
To avoid fake websites, experts at Visa recommend shopping on secure websites that begin with “https” only, checking URLs to make sure they’re legitimate and avoiding unsolicited links. Also be wary of shopping “deals” that seem too good to be true.
Avoid fake delivery scams
The Federal Trade Commission (FTC) warns about fake delivery scams that may involve fraudulent emails or text messages. Criminals perpetrating this scam typically send messages to people who may be expecting a delivery with the goal of getting them to reveal their sensitive data. For example, a text may say your item is out for delivery but you need to click on a link to confirm your credit card information first. Or, they’ll use fake texts or emails to get you to click on a link that installs malware on your device.
To avoid this type of scam, the FTC recommends ignoring texts or emails you get about unexpected deliveries. If there’s a link to click on, don’t do it. If you think you may have ordered something that’s out for delivery, go to the actual vendor website or your online account to check on its status.
Watch out for gift card scams
Holiday gift card scams also abound, and many of them can lead to losses even if you pay for your gift cards with a credit card. One common scam is gift card draining, which takes place when a thief steals gift card information before a card is purchased. From there, they wait for you to buy the gift card so they can drain the funds immediately after it’s activated. This leaves you, the buyer, with a gift card that no longer has any funds attached to it.
To avoid gift card draining scams, steer clear of buying gift cards from large kiosks where the information can easily be scanned or stolen. Also check for tampering of gift card packaging, and keep receipts for gift cards you purchased until you’ve spent the money.
There are also fraudulent gift card websites that promise discounted gift cards for a great price, or even the ability to bid on a gift card and score a deal. These sites often leave consumers with financial losses and nothing to show for it.
Learn about charity scams
The end of the year is also ripe with charity scams, many of which want to take your credit card on a ride. Fake charities pop up all the time and share the same goal of exploiting your goodwill and getting you to donate to their cause. Unfortunately, these “causes” can often lead to stolen funds and credit card information in one fell swoop.
The FTC says you can check the legitimacy of charities you donate to on websites like the Better Business Bureau’s Wise Giving Alliance, Charity Navigator, Charity Watch or GuideStar. Also avoid unsolicited emails requesting charitable donations, and be skeptical of social media posts that ask for money.
➤ LEARN MORE:6 common types of credit card fraud and how to avoid them
Frequently asked questions about credit card fraud
What is credit card fraud?
Credit card fraud takes place when someone uses a credit card or a credit card number to make an unauthorized purchase or access cash at an ATM. Common credit cards scams can also lead to full-fledged identity theft if a criminal gets enough information about their victim, including their full name, address, date of birth and Social Security number.
How to report credit card fraud
If you suspect fraudulent purchases have been made with your credit card, call the number on the back of your card right away. This will result in your card issuer creating a credit card fraud report, after which they will issue you a new card and card number.
How to protect yourself from credit card fraud
Protect yourself from credit card fraud by shopping on secure websites online, using secure Wi-Fi networks and keeping your card information private. Also set up strong passwords for your accounts and utilize multi-factor authentication when you can.
The bottom line on holiday credit card fraud
When it comes to new credit card scams over the holidays, the list we’ve curated here is just the tip of the iceberg. Credit card scammers are always coming up with new ways to steal your money or your information, and even the common credit card scams are perpetrated in new ways over time.
Fortunately, credit card fraud detection can help you spot unauthorized purchases on your account fairly quickly, and credit cards typically come with $0 liability for unauthorized purchases. Even so, it makes sense to keep an eye out for scams and avoid them as much as you can.
