The holiday season is here and so is widespread fraud. The last few weeks before the new year present the ideal window for bad actors to bilk millions of dollars from unsuspecting consumers. Forbes, in their December 3 article, “FBI Warns—These Holiday Shopping Scams Could Ruin Your 2024 Season”, spoke to a rather disheartening statement from the FBI:
“The holiday season is a time of joy and celebration, but it’s also prime hunting season for scammers. The FBI has issued a warning to consumers about the growing risks of holiday-related fraud. With cybercriminals using increasingly sophisticated tactics and online shopping continuing to grow, more opportunities exist for fraudsters to exploit unsuspecting consumers than ever before.”
Fraudsters are not only capitalizing on the uptick in shopping and online transactions during this time, but their methods have become more sophisticated and harder to detect. If there was ever a time for you, as a bank marketer, to use your messaging power to help your customers, this is it.
The holiday season, December in particular, is always synonymous with an increase in consumer spending. From Black Friday and Cyber Monday deals to the last-minute shopping that leads right up to Christmas Day, billions of dollars flow through the economy. Ergo, the financial stakes of holiday scams are staggering. Last year, U.S. consumers lost $10 billion to various scams, marking a $1 billion increase from the previous year. Among these, non-delivery scams accounted for $73 million in losses, as consumers paid for goods that never arrived. (PS: I know. Twice in the last week, I’ve received a text that is supposedly from the USPS. It said that a package with my name on it is undeliverable because the zip code is incorrect. A little googling and I learned that the scammer, once you have clicked on the link in the email, asks for your banking information!) Gift card fraud is another common tactic that last year drained victims of $148 million … and no way to recover their money.
According to a variety of industry reports, fraudulent schemes are spiking by as much as 40%. “The FBI’s warning comes against a backdrop of record-setting online shopping activity.”1 The reason? With holiday e-commerce sales projected to exceed $260 billion this year, scammers have more opportunities than ever. They’re also deploying advanced techniques such as AI-generated fake websites and realistic phishing emails to trick even the most vigilant consumers. Younger shoppers, in particular, are at risk. According to the FTC, individuals aged 18 to 39 are 25% more likely to fall victim to online shopping scams than older adults, primarily because they are much more likely to get their information, and do their shopping, on e-commerce platforms and social media sites.
It’s the sophistication of the fraudulent activity that is most troubling. Traditional fraud tactics, such as phishing emails and phone scams, are being enhanced — or replaced entirely — by highly sophisticated techniques, including:
- Advanced AI-driven attacks: Fraudsters are using artificial intelligence to generate convincing fake emails, voices, and videos to deceive victims.
- Social media scams: Platforms have become a breeding ground for fake advertisements, promotions, and influencer endorsements aimed at stealing personal information or funds.
- Account takeover fraud: Using stolen credentials from data breaches, criminals are gaining unauthorized access to accounts and executing fraudulent transactions.
What your bank can do.
Banks should prioritize clarity and practicality when educating customers. Key messages might include:
- Recognize suspicious activity: Encourage customers to scrutinize emails, text messages, and social media links, especially those that request personal or financial information. Always verify the “source” of the communication, especially any that asks for PII (Personally Identifiable Information), such as the verification of a password.
- Use secure channels: Advise customers to only log into their accounts via official websites or mobile apps and to avoid public Wi-Fi, especially for online banking.
- Enable account alerts: Promote the use of real-time notifications for account transactions to quickly catch unauthorized activities.
- Implement MFA (Multi-Factor Authentication): Urge customers to use MFA to add an extra layer of security to their accounts.
- Be charitable, but be careful: Suggest verifying charities through legitimate directories like Charity Navigator or GuideStar before contributing.
How you can do it.
Use the same technology and marketing tactics that the fraudsters use:
- Emails: Can quickly inform customers about new and common scams.
- Mobile app push alerts: Can provide real-time reminders to stay vigilant.
- Social Media Posts: Can reach your customers – younger ones, in particular – where they spend the most time.
- Website banners: Can ensure every online visitor sees the message.
Act now.
With scams becoming more sophisticated and pervasive, now is the time to protect your customers. Proactive communication—paired with actionable advice — is key to mitigating the risks of holiday fraud and keeping your customers safe. Act now. As Bob Marley once said: “The people who are trying to make the world worse aren’t taking a day off. How can I?”
Bank Marketing Center
We’re bankmarketingcenter.com, the leading, subscription-based provider of automated marketing services to community banks. Our goal is to help bank marketers with that topical, compelling communication with customers that builds trust, relationships, and revenue.
We also want to share what we know – and learn along the way – with all our community banking friends. Whether it’s the latest on AI technology, suggestions on how to attract and retain top talent, or the importance of data protection, we’re here to make bank marketing the best that it can be.
Want to learn more about what we can do for your community bank and your marketing efforts? You can start by visiting bankmarketingcenter.com. Then, feel free to contact me directly by phone at 678-528-6688 or via email at nreynolds@bankmarketingcenter.com. As always, I welcome your thoughts.
1Forbes. “FBI Warns—These Holiday Shopping Scams Could Ruin Your 2024 Season.” December 3, 2024.