Smart Safety - Online Holiday Scams

 A new study found online scams are surging this holiday season and Minnesota ranks No. 18 in the nation losing a record $193.9 million last year.

Inboxes and social media feeds are being flooded with online scams exploiting pain points that arise during the holidays. This includes big discounts on gifts; preying on lonely people with romance scams; and offering time-sensitive investment opportunities.

Reverse search company Social Catfish released a study on the State of Online Scams 2024 using the most recent data from the FBI and FTC.

4 Online Holiday Scams and How to Avoid Them:

1) Romance Scams: Scammers exploit emotions during the festive season to make lonely victims fall in love and then drain their bank accounts. Using AI face swapping, scammers can video chat in real time.

How to Avoid: Perform a reverse search to verify their identity.

2) Look-a-Like Stores with AI Chatbots: Fake e-commerce websites that mimic trusted brands use AI customer service reps to answer questions in real time creating a sense of legitimacy.

How to Avoid: Carefully check the retailer’s URL (e.g., “Macys.com” vs. “Maceys.com”).

3) Deepfake Videos of Public Figures: Deepfake videos make it look like trusted public figures  are promoting Black Friday deals in ads or social media.

How to Avoid: Audio not matching, one facial expression, one tone of voice, extra body parts.

4) Holiday Investment Scams: Fraudsters promote holiday investment opportunities promising guaranteed returns only if the person invests right now during the holidays.

How to Avoid: Research the company and team behind the opportunity and consult a financial advisor before investing;