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-Editorial
The holiday season is typically a time for family, food, and festivities, but it also brings an uptick in scams. As consumers shop for gifts and enjoy the season, scammers are ramping up their efforts, making it crucial to stay vigilant and protect personal information.
Abhishek Karnik, Head of Threat Research at McAfee, warns, “The holidays are a season many look forward to – from consumers to retailers, to cybercrooks. Using AI-powered tools, scammers can now more quickly and easily create near-perfect imitations of trusted brand messages, celebrity faces, voices, and websites.”
This year, the rise of AI-powered scams has made it more difficult than ever for consumers to distinguish between real and fake. Scammers are using AI to generate deceptive emails, text messages, and deepfake videos of celebrities endorsing fake products, leading many to fall victim to fraud.
According to McAfee’s 2024 Global Holiday Shopping Scam survey, 59% of Americans have encountered AI-powered scams this holiday season. The most common scams reported include missed delivery or problem delivery texts/emails (59%), messages about orders never placed (44%), claims of payment, credit card, or banking issues (37%), and false security alerts or account update notices from “Amazon” (35%). These scams are becoming more sophisticated, making it harder for consumers to identify fraudulent messages.
The rising inflation and shoppers’ eagerness for discounts have made many more vulnerable to scams. Scammers exploit this desire for bargains, often promoting offers that seem too good to be true. These scams are designed to trick consumers into clicking on malicious links or providing sensitive information.
To protect themselves, McAfee’s Karnik advises consumers to double-check deals before making any purchases, avoid clicking on unsolicited messages, verify the authenticity of products and retailers, and use online protection for their devices. Simple precautions like these can help ensure that shoppers keep their personal information safe and avoid falling victim to scams.
Karnik also stresses the importance of exercising caution when encountering unrealistically low prices or hard-to-find items on unfamiliar websites. If something seems too good to be true, it probably is. Consumers should take time to carefully review messages for inconsistencies and avoid interacting with content that raises red flags. Staying informed and vigilant this holiday season will help shoppers enjoy a scam-free, safe, and festive time.
According to new data from the Federal Trade Commission (FTC), U.S. consumers lost a staggering $1.5 billion to scams during the holiday season alone.
The FTC’s latest report, released in early 2024, shows that consumers across the country were targeted by a range of fraudulent schemes, with the most common being phishing, fake online stores, and misleading advertisements. The report revealed that approximately 16 million people fell victim to scams between November and December 2023, a significant increase compared to the previous year. Phishing scams, where cybercriminals impersonate trusted brands or government agencies to steal personal information, accounted for nearly 40% of all reported cases.
While scammers are targeting shoppers across various platforms, the rise of social media and AI-powered fraud is also contributing to the increase in scam cases. Scammers have been using sophisticated deepfake videos and fake celebrity endorsements to promote counterfeit products and fraudulent services. The FTC’s report also highlighted a concerning trend of fake charity scams, which saw a 25% increase in 2023, as fraudsters preyed on consumers’ generosity during the giving season.
Experts emphasize the importance of vigilance when shopping online, particularly during the holiday season. The FTC encourages consumers to verify the legitimacy of websites, avoid clicking on suspicious links, and report any fraudulent activity immediately to prevent further losses.
