As the holiday season approaches, a surge in various scams such as blue check scams, quishing, tech support fraud, and travel scams is anticipated. These fraudulent activities have become more personalized, challenging to detect, and are thriving in an environment of heightened competition and increased regulatory scrutiny.
In this article, Amerant Bank sheds light on the measures that are crucial to mitigate the risks associated with holiday fraud.
Holiday Fraud Statistics
Fraudsters exploit the extended holiday retail events, improved consumer confidence, and increased online activity during the festive season. The statistics reveal the magnitude of the challenge: every year, the eCommerce industry loses $48 billion due to online payment fraud. Account takeover (ATO) fraud increased by 7% in 2023 compared to 2021, making it 29% of all fraud. And more than 43% of people have experienced online fraud; considering the global population, it means that almost 2.2 billion people have been victims of online fraud.
As consumers gear up for holiday shopping, it’s essential to be aware of current and emerging technologies and sophisticated tactics employed by fraudsters to steal data and funds.
Spoofed emails
Email spoofing is a threat that involves sending email messages with a fake sender address. Watch for spoofed emails that look real. Look carefully at their URLs, scammers often use domain names that are very similar to the ones they are impersonating. They are designed to look legitimate and can be difficult to spot.
Voice Phishing
Vishing—or voice phishing—is the use of fraudulent phone calls to trick people into giving money or revealing personal information. Scammers use technology that “spoofs” phone numbers, which means the Caller ID indicates that the call is coming from Amerant, even though it is not. Be cautious of phone calls that require you to provide personal information.
Package Delivery Scams
A package delivery scam happens when you get an unsolicited text message about an unclaimed delivery, with a malicious link to supposedly “claim” the package that doesn’t actually exist. If a package is delayed or missing, do not click on any links, directly contact the vendor and do not provide any information nor send payment information.
Zelle Fraud
Always confirm instructions with the recipient before you send money, ensure the transaction is legitimate, and make sure you do not give access to your account or your personal information to unauthorized parties. Banks will never ask for a passcode to complete or cancel a Zelle transaction.
Malicious links or websites
A malicious URL is a link created with the purpose of promoting scams, attacks, and fraud. When clicked on, malicious URLs can download malware, lead to phishing or spear-phishing emails, or cause other forms of cybercrime.
When accessing your online banking, always enter Amerant’s URL using https://banking.amerantbank.com or https://secure.amerantbank.com for TreasuryConnect.
Blue Check Scams
One prevalent avenue for scams during the holidays involves the misuse of social media platforms. Consumers, while using social media to connect with brands, need to be cautious of fraudulent activities behind false or stolen social media profiles. Scammers exploit platforms like X, using tactics such as optional ID verification limited to specific regions.
Victims are targeted through scam blue tick accounts, tricking them into revealing personal information or coercing them into moving to another platform under the guise of accessing refunds or escalating investigations. Additionally, there have been reports of high-profile accounts being hacked to disseminate malicious content.
QR Phishing Scams
The rise of QR phishing, known as quishing, adds another layer of concern. With QR codes becoming increasingly common for various purposes, malicious actors create fake QR codes leading users to seemingly legitimate sites designed to download malware or extract sensitive data, payments, or credentials.
The deceptive nature of QR-directed domains on mobile devices, combined with tactics like geofencing and CAPTCHAs, makes it challenging for security filters to recognize URLs as fraudulent. Quishing scams target individuals, businesses, and employees, aiming to commit identity theft and spread malware through schemes like fake parking meter codes, marketing ads, and email scams.
Tech Support Fraud
A notable shift in tech support scams is observed, as fraudsters move away from cryptocurrencies and instant payments, now coercing victims into making cash payments. This updated wave of scams involves pop-up windows, emails, or texts indicating fraudulent activity, with scammers posing as representatives from reputable companies like Microsoft, Dell, or Apple. Victims are manipulated into providing remote access to their devices, allowing scammers to deposit a deliberately large sum into their bank accounts. The victims are then convinced to return surplus funds to prevent the supposed representative from losing their job.
Holiday Travel Scams
Holiday travel schemes are also on the rise, targeting consumers searching for budget-friendly options during peak travel and vacation times. Scammers sell falsified, unauthorized vignettes in tourist shops, posing the risk of fines for unsuspecting travelers.
Additionally, scammers intercept customer calls to legitimate airlines and travel companies, impersonating representatives to execute payment and refund scams. Fraudulent third-party travel booking and insurance sites exploit consumers by charging extra fees for minor travel modifications or offering non-existent flights, hotels, or insurance policies.
In conclusion, as the 2024 holiday season unfolds, it is imperative for consumers and financial institutions alike to stay vigilant and take precautionary measures to keep their finances safe. Awareness of current and evolving fraud trends is crucial to your financial security and overall peace of mind during this festive period.
Related posts
