82% of Shoppers Have Reportedly Been Exposed To Fraud This Year

As the holiday season approaches, a shocking 82% of shoppers have already been exposed to fraud this year, according to an alarming AARP Fraud Watch Network™ report.

At a Glance

82% of shoppers have reportedly encountered some form of fraud this year.
Scammers are increasingly using technology to target individuals.
Text scams, phone scams, and email phishing are prevalent fraud methods.
Many consumers are unaware of common scam red flags.
Using credit cards and official retailer websites can help protect against fraud.

The Rising Tide of Consumer Fraud

In an era where technology connects us more than ever, it has also opened more avenues for fraudsters to exploit unsuspecting consumers. The AARP Fraud Watch Network™ has released a disturbing report revealing that 82% of shoppers have been exposed to some type of fraud this year. This staggering statistic underscores the urgent need for heightened awareness and protective measures, especially as we enter the holiday shopping season.

Scammers are becoming increasingly sophisticated, employing a variety of tactics to deceive consumers. From text messages and emails to phone calls and social media ads, fraudsters are leaving no stone unturned in their attempts to steal personal information and hard-earned money. What’s more alarming is that many consumers are unaware of the different scams and red flags to watch for, making them vulnerable targets.

Growing number of shoppers facing fraud: what to know https://t.co/RQnSx3ocYk

— FOX Business (@FoxBusiness) November 19, 2024

Common Fraud Tactics to Watch Out For

One of the most prevalent forms of fraud is “smishing,” or text message scams. These often involve fake messages from companies or enticing prize notifications. Clicking on links in these texts can lead to malware infections and identity theft. Similarly, phone scams frequently involve impersonation of government agencies or companies, sometimes using advanced voice cloning technology to appear more convincing.

Email phishing scams remain a significant threat, with fraudsters mimicking legitimate communications to extract personal information. Social media platforms have also become hunting grounds for scammers, with fake ads and friend requests being common ploys. The AARP report found that 44% of surveyed individuals had purchased through online ads on social media, with 35% of those experiencing fraud as a result.

Holiday Season: A Prime Time for Fraudsters

As the holiday season ramps up, so do the efforts of fraudsters. Over half of those surveyed reported receiving fraudulent notifications claiming to be from shipping companies like USPS, FedEx, or UPS about supposed shipment issues. The incidence of such fraudulent notifications has nearly doubled from 2022 to 2023, indicating a worrying trend.

Gift card scams are another area of concern, with about 25% of adults encountering gift cards with no balance. This type of fraud can be particularly devastating during the holiday season when many rely on gift cards for presents.

Protecting Yourself from Fraud

In light of these threats, it’s crucial for consumers to arm themselves with knowledge and take proactive steps to protect their personal and financial information. In 2023, Kathy Stokes from AARP advised consumers to be cautious of emails, texts, and social media ads offering great deals. Instead, she recommended shopping directly through trusted retailer websites or apps.

AARP also suggests using credit cards for safer online shopping, as they offer better fraud protection compared to debit cards. Despite this advice, 70% of people still plan to use debit cards, which have longer resolution processes for fraud. Even more concerning, over 30% plan to use peer-to-peer payment apps, which offer limited or no fraud protection.

Stay Vigilant, Stay Safe

As we navigate the digital landscape, especially during the holiday season, it’s vital to remain vigilant. Be wary of unsolicited communications, verify sources through official channels, and avoid clicking on suspicious links. It’s important for those who do fall victim to a scam to report the incident as soon as possible and secure their accounts, and monitor credit reports for any unusual activity.

Knowledge can be the best defense against fraud. Staying informed about the latest scams can help you protect yourself and your loved ones from fraud and scams. By staying alert and following best practices for online safety, we can all contribute to making this holiday season a joyous and secure one.