The holiday season is right around the corner, which means many of us will be shopping online for gifts, deals, and seasonal essentials. While online shopping is convenient and often cost-effective, it’s also a prime time for scammers to take advantage of unsuspecting consumers. As your accountholders prepare for holiday shopping, remind them that you are here to help them stay secure with tips for avoiding common scams that surface this time of year.  

Online Holiday Shopping – Buyer Beware!

The holiday season is right around the corner, which means many of us will be shopping online for gifts, deals, and seasonal essentials. While online shopping is convenient and often cost-effective, it’s also a prime time for scammers to take advantage of unsuspecting consumers. As you prepare for your holiday shopping, <FINANCIAL_INSTITUTION>is here to help you stay secure with tips for avoiding common scams that surface this time of year. By following these guidelines, you can shop confidently and safely. With a little awareness, you can avoid online shopping fraud as the busiest time of the year for retail shopping is shifting into high gear. 

The Federal Trade Commission (FTC) Consumer Sentinel Network Data Book indicates that in 2024, fraud related to online shopping was the second most reported type of fraud in 2024, costing consumers more than $434.4 million–compared to $256.7 million lost in 2020. What can you do to help protect yourself? Check out this quick list to help you beat the odds and stay safe this holiday season. 

1. Make sure you are buying from a reputable source. Many of the reported incidents of goods not received by consumers weren’t the result of porch thieves but rather consumers transacting with fake websites that just took their money and never delivered. Before transacting with an online company for the first time, do your homework before you buy. Try to find evidence that the site is real; for example, look for a physical address and phone number associated with the company.  You can also type in the company's name in an online search to see if there are any reported scams associated with the name. In addition, we recommend that you search the Better Business Bureau site for information, simply by typing www.bbb.org and entering the company name.

2. Understand the total cost of your order and what you are getting. If it's too good to be true, many times it is.  Check out the seller's reputation for standing behind their goods and their customer service. Pay close attention to the product description and the fine print.  Look for size specifications, as pictures shown online can be wildly deceiving. Be on the lookout for words like "restocked", "refurbished," and "vintage," as the product is most likely used.  While it's tempting to purchase designer-brand items at lower than retail prices, many times the item could be a counterfeit. The designer’s name can be changed so slightly that you may fail to notice it in online pictures. Finally, pay close attention to additional fees or costs in "Shipping" or "Handling" charges. Make sure you review the total order cost before you finalize your purchase, as a lower advertised price could be recouped in these additional fees at checkout.

3. Check out the terms for refunds, shipping methods, and delivery date. Every retailer has their own shipping and refund policies. In many cases, you can select the shipping method, but retailers may choose the one that works best for them. Before you place your order, it's important that you understand what the shipping method will be, what the expectations are for delivery, and what you need to do if you are not satisfied with the purchase. Refund policies will vary and can often have limits on what is an acceptable timeframe to obtain a refund. If you're gifting this item on Christmas morning after a Black Friday purchase, you could be outside the refund window of some retailers.

4. Plan for deliveries left at your door.  Online shopping is a convenient way to buy groceries, household items, clothing, and everyday necessities. And while it's nice to have packages delivered in days or even hours, there are multiple ways a delivery might not make it into your hands. Most of the major delivery companies, such as FedEx, UPS, and USPS, offer consumers ways to track packages with email or text notifications, ensuring packages aren't left or forgotten. In addition, it is a good idea to create a space near your front door, behind planters or other items, so deliveries can be placed out of sight from the street. Installing security cameras can both help prevent porch theft and provide important footage in case a porch pirate strikes. Locker systems and smart key technologies can keep deliveries safe from theft, providing peace of mind that packages are ready to pick up when you are.

5. Use a consistent payment method and track your purchases.  Using your <FINANCIAL_INSTITUTION> <DEBIT/CREDIT> card for online purchases is a great way to ensure you are protected in the event there is fraud. It's also a great way to track your online purchases, in real time with mobile and online banking to ensure there aren't any unexpected or unauthorized charges. It's also important to retain electronic records from retailers about your purchases. This way you can compare your purchases to your card activity, helping you make sure everything matches your expectations and you have received all the deliveries expected.

6. Protect your personal information. Look at the web address (URL) of the company's website. If it begins with “https” instead of “http,” it means the site is secured using an SSL certificate (the “s” stands for "secure"). SSL certificates secure your data as it is passed from your web browser to the website's server.  Without an SSL certificate, your personal information may be exposed and easily accessible by cybercriminals. In addition, you can look for an icon, typically a lock or a seal, with the words "Secure" or "Verified". This is typically a trust seal and an indication that the website company is verified with a security partner. You can check to see if the seal is legitimate simply by clicking on the icon. You should be taken to a verification page naming the security firm behind the seal. You may also want to check to make sure that the website has a Privacy Policy and contact information, which are other indicators that the website has standard security measures in place.    

While this may all seem overwhelming, it will quickly become second nature, and you will be shopping with confidence without even having to think of this quick list.

[If your Program includes Identity Theft Recovery Services, include the following statement] And, if you have the <EMBEDDED ACCOUNT> account with <FINANCIAL INSTITUTION> you can also rest assured that if you find you are a victim of identity theft-for any reason-our team of professionals is standing ready to help with Fully Managed Identity Theft Recovery. Happy Holidays!