Checklist 402: Avoiding Shopping Scams 2024

Holiday Shopping Scams on the Rise: AI and Urgency Among Scammers’ Top Tools

As the holiday season approaches, scammers are ramping up their efforts, using fear, urgency, and advanced technologies like artificial intelligence (AI) to exploit online shoppers. In this episode of Checklist by SecureMac, Ken delves into the evolving landscape of holiday shopping scams, highlighting consumer vulnerabilities and sharing tips for staying safe.

The Power of Fear and Urgency

Scammers often manipulate emotions, particularly fear and urgency, to coerce victims into hasty decisions. Ray recounted a phone scam in which a fraudster impersonating law enforcement coerced a relative into buying $1,800 worth of gift cards. By creating a false sense of imminent danger, scammers compel victims to act quickly, bypassing rational thought.

AI-Powered Scams on the Rise

AI is now a key tool in scammers’ arsenals, enabling them to create convincing fake websites, realistic phishing emails, and counterfeit shopping apps. McAfee’s recent survey underscores the growing threat:

• 1 in 5 Americans have unknowingly purchased fake products endorsed by deepfake celebrity videos.
• Among Gen Z and Millennials, the number rises to 1 in 3.
• Older generations fared better, with only 1 in 20 reporting being duped by deepfake scams.

Common Scam Tactics

The McAfee report also identified common methods scammers use to reach potential victims:

• 59% of respondents received fake delivery notifications.
• 44% encountered bogus purchase alerts.
• 37% were targeted with fake account or credit card issue messages.
• 35% reported fraudulent Amazon security alerts.

Social media and email are primary scam delivery channels, with 64% of Americans receiving scam messages via email and 20% via text.

Changing Consumer Behavior

AI-driven scams are reshaping how people shop online:

• 70% of surveyed shoppers believe scams will become more convincing.
• 58% said they plan to be more vigilant when evaluating messages.
• However, 38% admitted they would still jump on a great deal immediately, and 64% are likely to purchase from unfamiliar social media retailers offering enticing discounts.

Staying Safe This Holiday Season

Ray emphasized the importance of skepticism and vigilance:

• Verify the legitimacy of retailers and deals before making purchases.
• Avoid clicking on suspicious links in emails or texts.
• Use secure payment methods and avoid sharing sensitive information via unverified channels.

Holiday Shopping Scams: Phishing, Spoofed Sites, and Identity Theft Persist, Enhanced by AI

As the holiday shopping season heats up, scammers are doubling down on familiar tactics like phishing, spoofed websites, and identity theft—many now augmented by artificial intelligence (AI). This time, Ken offers practical advice to help consumers stay safe and avoid falling victim to these scams.

The Old Tricks Enhanced by New Tech

While AI has sharpened scammers’ tools, the core methods remain familiar:

• Phishing Emails and Social Media Scams: Fraudulent messages aim to extract personal or financial information, often masquerading as legitimate notifications.
• Spoofed Websites and Fake Online Stores: Sites mimic trusted retailers, tricking users into sharing payment details or purchasing non-existent products.
• Identity Theft and Credit Card Fraud: Stolen information is used to make unauthorized purchases or open accounts in victims’ names.

Key Red Flags for Phishing and Spoofed Websites

To detect scams, Ray and McAfee suggest the following:

• Email and Link Verification: Check sender addresses, look for typos, and ensure logos match official branding. Avoid clicking on links in unsolicited emails—visit the site directly to verify claims.
• Urgency and Pressure: Scammers exploit urgency, such as countdowns for “exclusive deals” or warnings about account issues. Take time to assess legitimacy before acting.
• Website Security Checks: Confirm the URL starts with “https” and matches the retailer’s official domain. Look for trust seals and security badges.

Preventing Identity Theft and Credit Card Fraud

Familiar precautions remain vital:

1. Use Credit Cards, Not Debit Cards: Credit cards offer better fraud protection.
2. Digital Wallets: Platforms like Apple Pay or PayPal provide an additional security layer by masking card details.
3. Monitor Financial Accounts: Regularly review bank and credit card statements to catch unauthorized transactions early.
4. Avoid Public Wi-Fi: Shopping or checking financial accounts on unsecured networks is risky. If unavoidable, use a VPN for added security.

Tech and Tools for Safer Shopping

McAfee and Ray emphasize adopting these measures for extra protection:

• Two-Factor Authentication (2FA): Adds an extra step to verify your identity during logins.
• Strong, Unique Passwords: Consider using password managers like Apple’s new Passwords app to simplify and strengthen account security.
• Device Updates: Ensure all devices are running the latest software to protect against vulnerabilities.

Consumer Advice from McAfee

McAfee’s recommendations for avoiding scams include:

• Shop at well-known retailers and verify unfamiliar ones through reviews or the Better Business Bureau.
• Be wary of deals on social media or email that seem too good to be true.
• Stay informed about how AI and scams are evolving.