Holiday scammers already on the prowl

  • By Susan Tompor Detroit Free Press
  • Wednesday, November 13, 2013 2:18pm
  • Business

With Halloween just a memory, we’re now hearing about all the Freddy Kruegers that cause credit card nightmares during the holiday shopping season.

“Sometimes, the pathway to being a victim to fraud is the desire to find a bargain without really thinking about it,” said John Buzzard, a consumer fraud expert and product manager of FICO Card Alert Service. “You’re not going to find a Cartier watch for $50. If you could, I’d have one by now.”

The scams, which often lure victims to provide credit card numbers, have grown in sophistication over the years. One hot spot: websites that offer incredible deals on designer duds and electronics. Buy there, and you’ll be giving your credit card number to con artists.

One of the more troubling tricks is when a box is actually in the mail after you order something from these sites, and you can track the package. Yet when you open the box, you’ll find an odd item, maybe a toothbrush or a shower cap, instead of that designer deal.

As we move into the holiday season, expect even more pitches by email, text and other digital means to encourage consumers to put their purchases on plastic. But all that convenience can create easy pickings for con artists. Yes, credit cards have protections, but you don’t want to be at risk for ID theft or face the headache of clearing up fraud.

The FICO Falcon Fraud Manager Consortium research indicates that “card-not-present fraud” is a fast-growing area and now accounts for nearly half of all credit card fraud.

Miranda Perry, a staff writer for the consumer advocacy site Scambook.com, said last holiday season, plenty of websites popped up that were based in China, bragged of big bargains and had oddly worded descriptions of designer items.

“That’s just a very big red flag,” Perry said. “The $500 handbag for $20 is not a real deal.”

“When you go online, a little bit of research can save you money,” said Terry Thornton, fraud services director for Comerica Bank. She suggests taking time to search for any complaints about a site or a product before buying.

Another warning: Don’t fall for any phishing emails telling you that your computer has a virus, and you can get free security software by clicking “here.” Thornton said the virus software scam is alive and well lately.

“They lure you in,” she said.

Many consumers aren’t even doing the basics, according to an online survey released last month by Experian ProtectMyID. The survey, conducted by Harris International, surveyed more than 2,000 consumers. The survey noted risky practices:

•More than 40 percent of adults who use a smartphone say they rarely or never use a password to unlock it. Will a thief who picks up your phone have easy access to stored credit card information via a retail app?

If a phone isn’t password-protected, the phone thief could have “a very fast shopping spree on you,” said Becky Frost, senior manager of consumer education for Experian ProtectMyID.

•About 57 percent of online shoppers do not always go to sites directly. Instead, they click on links that increase the risk of going to a fraudulent site designed to capture their personal information.

Todd Albery, CEO of Detroit-based Quizzle.com, which provides free credit reports and scores, said consumers should make sure they’re shopping at protected sites. “You’ll know a website is protected by the ‘https’ address and a lock icon in the Web address bar,” he said.

Beware of hackers, too. Public computers and public Wi-Fi areas that aren’t protected by a password are not good places to buy holiday items on your credit card, Albery said.

•According to the Experian ProtectMyID survey, about 29 percent of adults said they carry their Social Security card or a copy of it in their wallet or purse.

•Do not put write your PIN on the back of your debit card or keep that PIN in your wallet with a debit card. You’re making it too easy for crooks to tap into your checking or savings account.

•Here’s another clue: A car’s glove compartment isn’t a secret hiding place.

“Wallets left in glove compartments account for thousands of credit card thefts each year,” said Sukhi Sahni, a spokesperson for Capital One.

How to avoid credit card-related scams

•Be sure to log off when using online banking or online shopping sites. Do not use public Wi-Fi to shop.

•When you go shopping, take just one credit card, said John Ulzheimer, consumer credit expert at CreditSesame.com. That way, you’re limiting any fraud issues to one card versus several, if your wallet or purse is stolen.

•Frequently check purchases on your credit card and activity in your bank account. Keep an eye out for even small charges that seem odd; that’s how crooks test if a card is live.

•Use anti-virus software and real-time virus scans.

•Some card issuers, such as Discover, offer a free service called Secure Online Account Numbers, which allows card members to shop online but doesn’t reveal the account number on the Internet or allow it to be stored in a retailer’s files.

SOURCE: Detroit Free Press research

Talk to us

> Give us your news tips.

> Send us a letter to the editor.

> More Herald contact information.

More in Business

Black Press Media operates Sound Publishing, the largest community news organization in Washington State with dailies and community news outlets in Alaska.
Black Press Media concludes transition of ownership

Black Press Media, which operates Sound Publishing, completed its sale Monday (March 25), following the formerly announced corporate restructuring.

Maygen Hetherington, executive director of the Historic Downtown Snohomish Association, laughs during an interview in her office on Thursday, Feb. 15, 2024, in Snohomish, Washington. (Ryan Berry / The Herald)
Maygen Hetherington: tireless advocate for the city of Snohomish

Historic Downtown Snohomish Association receives the Opportunity Lives Here award from Economic Alliance.

FILE - Washington Secretary of State Steve Hobbs poses in front of photos of the 15 people who previously held the office on Nov. 22, 2021, after he was sworn in at the Capitol in Olympia, Wash. Hobbs faces several challengers as he runs for election to the office he was appointed to last fall. (AP Photo/Ted S. Warren, File)
Secretary of State Steve Hobbs: ‘I wanted to serve my country’

Hobbs, a former Lake Stevens senator, is the recipient of the Henry M. Jackson Award from Economic Alliance Snohomish County.

Mark Duffy poses for a photo in his office at the Mountain Pacific Bank headquarters on Wednesday, Feb. 14, 2024 in Everett, Washington. (Annie Barker / The Herald)
Mark Duffy: Building a hometown bank; giving kids an opportunity

Mountain Pacific Bank’s founder is the recipient of the Fluke Award from Economic Alliance Snohomish County.

Barb Tolbert poses for a photo at Silver Scoop Ice Cream on Thursday, Feb. 29, 2024 in Arlington, Washington. (Annie Barker / The Herald)
Barb Tolbert: Former mayor piloted Arlington out of economic brink

Tolbert won the Elson S. Floyd Award, honoring a leader who has “created lasting opportunities” for the underserved.

Photo provided by 
Economic Alliance
Economic Alliance presented one of the Washington Rising Stem Awards to Katie Larios, a senior at Mountlake Terrace High School.
Mountlake Terrace High School senior wins state STEM award

Katie Larios was honored at an Economic Alliance gathering: “A champion for other young women of color in STEM.”

The Westwood Rainier is one of the seven ships in the Westwood line. The ships serve ports in the Pacific Northwest and Northeast Asia. (Photo provided by Swire Shipping)
Westwood Shipping Lines, an Everett mainstay, has new name

The four green-hulled Westwood vessels will keep their names, but the ships will display the Swire Shipping flag.

A Keyport ship docked at Lake Union in Seattle in June 2018. The ship spends most of the year in Alaska harvesting Golden King crab in the Bering Sea. During the summer it ties up for maintenance and repairs at Lake Union. (Keyport LLC)
In crabbers’ turbulent moment, Edmonds seafood processor ‘saved our season’

When a processing plant in Alaska closed, Edmonds-based business Keyport stepped up to solve a “no-win situation.”

Angela Harris, Executive Director of the Port of Edmonds, stands at the port’s marina on Wednesday, Jan. 24, 2024, in Edmonds, Washington. (Ryan Berry / The Herald)
Leadership, love for the Port of Edmonds got exec the job

Shoring up an aging seawall is the first order of business for Angela Harris, the first woman to lead the Edmonds port.

The Cascade Warbirds fly over Naval Station Everett. (Sue Misao / The Herald file)
Bothell High School senior awarded $2,500 to keep on flying

Cascade Warbirds scholarship helps students 16-21 continue flight training and earn a private pilot’s certificate.

Rachel Gardner, the owner of Musicology Co., a new music boutique record store on Thursday, Jan. 18, 2024 in Edmonds, Washington. Musicology Co. will open in February, selling used and new vinyl, CDs and other music-related merchandise. (Olivia Vanni / The Herald)
New Edmonds record shop intends to be a ‘destination for every musician’

Rachel Gardner opened Musicology Co. this month, filling a record store gap in Edmonds.

MyMyToyStore.com owner Tom Harrison at his brick and mortar storefront on Tuesday, Sept. 6, 2022 in Everett, Washington. (Olivia Vanni / The Herald)
Burst pipe permanently closes downtown Everett toy store

After a pipe flooded the store, MyMyToystore in downtown Everett closed. Owner Tom Harrison is already on to his next venture.

Support local journalism

If you value local news, make a gift now to support the trusted journalism you get in The Daily Herald. Donations processed in this system are not tax deductible.