As the festive period approaches, this means more buying and selling for people.
A recent report from Visa, a global frontrunner in digital payments, has unveiled the reason consumers must be extra careful during this period. This report forecasts an upsurge in scam activities during the upcoming holiday season, specifically targeting both in-store (CP) and online (CNP) transactions. The analysis stresses prevalent fraudulent methods likely to be employed between November 2023 and January 2024, driven by the substantial increase in online shopping and in-person purchases within the retail and hospitality sectors.
Per the data scrutinized by the digital payment company, there is evidence showing that during the holiday season, threat actors tend to target consumers more frequently. In 2022, the fraud rates for key merchant categories, as observed by Visa, rose by 11% compared to non-holiday periods, marking an 8% increase from the previous year during this specific timeframe. The Holiday Edition Threats Report reiterates that malicious actors will exploit the increased eagerness and urgency of consumers searching for deals and distinctive gifts.
Paul Fabara, Chief Risk Officer, Visa said, “Crooks prepare all year for the holiday shopping season, taking advantage of increased activity and consumers who let their guard down searching for the perfect gift.”
According to the Holiday Threat Report, these scams could happen as Phishing and Social Engineering, OTP Bypass and Provisioning Fraud, or Physical Theft. The report said, that in the case of Phishing and Social Engineering, fraudsters can develop phishing websites, frequently employing fake advertisement and unauthorized search engine optimization (SEO) strategies on retail or service websites to lure consumers.
OTP Bypass is another method used by scammers, according to Visa. With this method, fraudsters send OTP templates to consumers, creating the impression that these codes are linked to an intended purchase.
Visa also took time to explain in the report that physical thefts can happen in crowded retail environments, shopping malls, or parking lots, where anyone can appear to steal payment cards and/or phones from unaware consumers.
All of the information shared by the company is so that no one would fall prey to any form of theft/fraud. “At Visa, we are committed to security and reliability, with a promise of 24/7 threat monitoring, even during the busiest time of the year. Consumers can rest easy this holiday season knowing Visa’s team of experts is working around the clock to stop fraud in its tracks,” Paul Fabara said.
