In the Holiday Edition Threats Report, Visa anticipates threat actors will use advanced schemes to exploit consumers’ information during the holiday season and shares tips and tricks for safe transactions
Visa Inc., a world leader in digital payments, revealed its Holiday Edition Threats Report, which anticipates heightened scam activity during the holiday season across both card-present (CP) and card-not-present (CNP) transactions. The new report identifies popular fraud tactics expected between November 2023 and January 2024 due to the rapid increase in eCommerce activities and in-person spending across retail and hospitality. Visa, today, also unveiled its list of top 10 habits consumers can follow to practice safe and secure shopping.
Sri Lankan consumers are increasingly using online payment gateways, making various purchases from e commerce sites globally and locally. This growing trend means that the consumers need to be more vigilant and mindful of online safety when making transactions during the season.
Historical data and transactions show that threat actors prey on consumers during the holiday season. In fact, Visa’s data shows that for the top merchant categories targeted by fraudsters, 2022 holiday fraud rates increased 11% over their non-holiday fraud rate and saw an increase of 8% over the previous year during this time[1]. The Holiday Edition Threats Report warns that threat actors will seek to exploit consumers’ increased interest and urgency in finding deals and one-of-a-kind gifts. Highlights of the report’s findings include:
- Digital Skimming: With the increase in online shopping, there’s a greater opportunity for scammers to successfully compromise account data from eCommerce merchants and monetize it.
- Phishing and Social Engineering: The advancement of artificial intelligence (AI) over the past year provides threat actors with the ability to create highly customized phishing campaigns, making it harder for consumers to spot fakes. Fraudsters also create phishing websites, often using malvertising (malicious advertising) and other illicit search engine optimization (SEO) tactics on retail or service websites to entice victims.
- ATM / POS Skimming: With the increase in foot traffic at brick-and-mortar merchants and ATMs, threat actors will likely target ATM and POS terminals with skimming attacks.
- OTP Bypass and Provisioning Fraud: Visa identified many one-time-passcode (OTP) bypass schemes to gain access to cardholders’ accounts. In this scheme, OTP templates are sent to the victims that appear to be associated with desired purchase.
- Physical Theft: Threat actors may attempt to physically steal payment cards and/or phones from unsuspecting consumers in crowded retail stores, shopping malls, or parking lots.
“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,” said Paul Fabara, Chief Risk Officer, Visa. “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 it its tracks.”
10 Habits to Help Consumers Shop Securely
Visa’s 10 Habits for Good Security Hygiene can guide consumers who are planning to shop this holiday season on best practices to stay safe – not just during the holiday season, but year-round.
- Only shop from trusted and secure websites: Look for “https” in the URL and a padlock symbol in the browser bar. These symbols indicate that the website is secure and uses encryption to protect your data.
- Be wary of deals that seem too good to be true: Scammers often lure victims with incredible deals. If a deal seems too good to be true, it probably is.
- Use secure payment methods: Payment cards often offer better fraud protection than other methods. Conduct thorough research before partaking in direct money transfers, wire transfers, and peer-to-peer mobile apps as they are disproportionately targeted by fraudsters.
- Be cautious with emails and messages: Phishing scams are common during the holiday season. Never click on links in unsolicited emails or messages. Always verify with the sender directly through their customer service line or mobile app before providing any personal information.
- Keep your devices and software updated: Regular updates often include security patches that protect against new threats. Make sure your devices and software are up to date.
- Use strong and unique passwords and enable 2FA: Each of your online accounts should have a unique password and enabled with two-factor authentication (2FA) to make it more challenging for fraudsters to access.
- Monitor your bank and credit card statements: Regularly check your statements for any unauthorized transactions and enable transaction alerts. If you see anything suspicious, report it immediately.
- Be wary of fake charities: Scammers often take advantage of the holiday season to set up fake charities. Always research a charity before making a donation. Use resources like Charity Navigator to help ensure your goodwill is going to a good cause.
- Protect your personal information: Never provide personal information unless it’s necessary. As fraudsters continue to use AI to impersonate voices, be wary of any requests for personal information –even if the message claims to be from a friend or family member.
- Avoid shopping on public Wi-Fi: Public Wi-Fi networks are often unsecured and can be a target for hackers. It’s safer to shop from a secure home network or use a VPN.
At Visa, security and reliability is a top priority year-round. Over the past five years, the company has invested more than $10 billion in technology, including to reduce fraud and increase network security. More than a thousand dedicated specialists protect Visa’s network from malware, zero-day attacks and insider threats 24x7x365. In fact, in the first six months of 2023, Visa helped to proactively block $30 billion in fraud, preventing many from ever knowing they were at risk of a potential fraudulent transaction. We encourage consumers to stay alert during this season and think about where they are shopping and who they are sharing their information with to keep it safe.
[1] Top merchant categories include home improvement and supply, telecommunications, business to business, healthcare, automotive, entertainment, education and government, lodging, insurance, airlines, and drug store and pharmacies.