With retail sales expected to increase 2.3% to 3.3% and e-commerce expected to grow between 7% and 9% over the holiday season, consumer concerns about protecting themselves against financial fraud have never been greater.

Last year, Coloradans faced a staggering $164 million in losses due to fraud, a significant increase from $140 million in 2022 and nearly double the amount reported in 2021, according to the Federal Trade Commission. Credit Union of Colorado is here to help with tips to keep your finances safe and prevent scammers from stealing your holiday cheer.

Be careful when shopping online

According to the Better Business Bureau, online shopping scams are very common and more than 80% of those targeted lose money. As holiday shoppers rely on online shopping more than ever, it’s important to be vigilant.

Shop only at trusted online retailers.

Misspellings in the URL and on the website itself can indicate that the page is not legitimate.

Research the site’s security. Secure websites will display a closed padlock icon in the address bar. You can usually click on the padlock icon to see the details of the certificate.
Search the retailer’s name along with terms like “fraud,” “complaints,” or “reviews” and look for red flags.

Use traceable payment methods.

Being asked to pay by gift card, cryptocurrency or bank transfer is a sign that the transaction may be a scam. It’s better to pay with a credit card or peer-to-peer payment app like PayPal or Venmo that has purchase protection.

Beware of offers that seem too good to be true. One of the most widely used online shopping scams are websites that offer highly sought-after products at surprisingly low prices. Once you’ve checked out, you’ll receive an order confirmation but never receive your purchase.

Don’t fall for fake delivery scams

In 2023, the United States Post Office was the most imitated organization by fraudsters. Many of these scams involve fake delivery notification texts that entice you to click on malicious links, leading to fake websites that steal sensitive information or install malware.

During the holiday season, the temptation to click on unwanted “tracking” links increases, especially when potential gifts come in. To avoid becoming a victim of these scams, do not engage with any text messages or emails that ask you to click on links or provide information. Instead, track your packages directly through trusted delivery service websites directly.

Protect your passwords

Review the security of your accounts before the holidays. Be sure to use a unique password for each of your accounts and enable multi-factor authentication where possible, especially with financial accounts. This security feature requires an extra step to verify your identity before you can log in and helps keep your information safe if your account’s password is compromised.

Check for foaming devices

Always inspect ATMs and card readers for card skimming devices. According to the FBI, card skimming fraud costs financial institutions and consumers over $1 billion annually.

In this scheme, fraudsters attach small, hard-to-detect skimmers to card readers and record your credit or debit card information. For increased security, you can consider using contactless payment options such as payment cards or digital wallets.

Don’t shop with public Wi-Fi

While it can be tempting to shop on the go, it’s best to avoid public Wi-Fi networks. Hackers can exploit these networks to capture sensitive information. To protect yourself, avoid holiday shopping or logging into financial accounts while connected to unsecured Wi-Fi.

Awareness is the key to avoiding scams during the holiday season and year round. It is also important to trust your instincts. If something feels unsafe – it probably is. For example, most financial institutions, such as Credit Union of Colorado, will NEVER ask you for a verification code, website password, or fully activated card number over the phone, via text or email. When you contact a financial institution about your account, you may be asked to verify your identity in other ways. You should never disclose financial details to someone who calls you directly.

“We encourage our members and all Coloradans to be aware of potential scams at all times, especially during the holiday season. Your best defense is awareness,” said Donna Stotler, branch manager for Credit Union of Colorado in Cañon City. “If you think you may have victimized by a scam, we recommend using the Credit Union of Colorado’s fraud checklist to restore the security of your accounts and possibly your identity.”