Christmas is a time when we want to focus on the things we enjoy in life – good food, drink, gifts, and spending time with friends and family. Unfortunately, there are people out there who will look to take advantage of us while our attention is elsewhere.
UK Finance, which represents the UK finance industry, has warned that Christmas is a peak time for online shopping scams – especially since the pandemic has forced more people than ever to spend money online.
In this article we’ll explore what online shopping scams are, why Christmas is such a dangerous period for online fraud, and the precautions you can take to make sure you enjoy a happy, secure Christmas this year.
What are online Christmas scams?
The anti-virus and online security firm Norton defines online scams as a person using internet services or software in order to defraud or otherwise take advantage of unsuspecting victims – usually for financial gain.
Online Christmas scams are all of the above, but perpetrated on or around the festive period, where traffic is typically higher and so scammers are presented with more opportunity to fool online shoppers.
Online Christmas scams can be anything from bogus shopping websites to phishing emails, and look to take advantage of people trying to purchase gifts and supplies for the holiday season.
Why is Christmas a particularly dangerous period for scams?
Christmas is a period of heightened intensity – whether that’s in your personal life as you look to get everything in order before the big day, or in your professional life, where you need to make it through a mound of work before you can successfully sign off for the holidays.
When it comes to Christmas shopping, things get a bit manic at this time of year. People spend money on expensive gifts to show their loved ones they care, expensive food to serve up on Christmas Day, or expensive travel to spend time with their loved ones over the holiday period.
All of these activities present an opportunity for bad actors to take advantage of people, and given [X amount] of our holiday spending has moved online, Christmas can be a big payday for hackers and online scam artists.
Put simply, any time you’re spending money or sharing financial details online, you’re making yourself vulnerable to online scams. That’s not to say you shouldn’t shop online – only that there are precautions you can take, particularly after a year like this one.
Has the pandemic increased the chances of being scammed at Christmas?
In a word, yes. The coronavirus has forced many of us indoors, and meant that many of the stores where we would traditionally buy Christmas gifts and supplies have been forced to close.
Between ongoing restrictions, many of us working from home for the majority of the year, and the continual march to online retail, more people than ever before are doing their shopping virtually – a situation that suits online scammers down to the ground.
UK police have already confirmed that online shopping scammed have increased by 30% over the course of the pandemic so far.
Given that fraudsters conned 17,407 shoppers out of almost £13.5 million over the Christmas period last year – before the pandemic hit – the figure this year looks set to be even higher. That’s why it’s more important than ever to be vigilant when shopping online.
What are some examples of online Christmas scams to look out for?
e-Card scams
An e-Card is a virtual Christmas card that many people send to their friends and family rather than sending them through the post. The problem is that many e-Cards contain malicious software hidden in animations, pictures, or links to hacker-controlled websites. Be wary of emails that push you in the direction of e-cards and if you receive an email that looks suspicious, trust your instincts. Don’t open it.
Gift card scams
There are many scam online gift cards out there that claim to allow you to make purchases on big e-commerce sites like ASOS and Amazon. They are often shared on social media platforms, with scammers trying to lure you into clicking and unwittingly triggering an exchange of your personal information. Never click on suspicious-looking social media links extolling ‘special offers’.
Phishing emails
One of the oldest online scams in the book, phishing emails involve a scammer posing as a trustworthy organization over email and asking you to take a specific action – like an email from a delivery service telling you to confirm your information in order to accept your parcel. Although these emails have been around for a long time, they’re getting more sophisticated, so always be wary of emails urging you to take a specific action quickly.
What happens if I lose money in a Christmas scam?
If you do fall victim to an online scam this Christmas, the first thing to do is not to panic. The second is to take action – you may be able to get your money back, or at least prevent more money from being taken, if you act quickly.
There are three broad actions you should take if you find yourself the victim of an online shopping scam:
- Protect yourself from further scams
- Report the scam to the appropriate authority
- Find out if and how you can get your money back
The first thing to do is to go into defence mode. As soon as you discover you’ve been hacked, you should change all of your important passwords, contact your bank or building society to let them know you may be vulnerable, and purchase or update your antivirus software.
Next, you should make you report the scam to the appropriate authority. If you feel unsafe or the scam has caused you to lose a substantial amount of money, you should get the police involved. Otherwise, there are various organisations who handle online scams, from Citizens Advice to Action Fraud.
Finally, see about getting your money back. Sometimes if you explain to your bank what has happened, certain providers will offer a full or partial refund. If your bank doesn’t offer you a refund, and you feel you have been treated unfairly, you can take your complaint to the Financial Ombudsman.
Where can I get financial support after an online scam?
If an online scam has cost you money, you’re not alone. Millions of people are the victims of online fraudsters every year, especially at Christmas time. If that scam has left you feeling financially insecure, however, you should seek help.
Creditfix is the UK’s biggest provider of managed debt solutions. We help people with all manner of money problems, including those who have been the victims of fraud, to get their financial lives back on track.
