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Keep the holidays festive by avoiding fraud

Learn ways to keep financial fraud from stealing your holiday joy.

Nov. 28, 2022 3-minute read

’Tis the winter holiday season! For many, the delight of the holidays is accompanied by extra spending. Whether you are spending money on charitable giving, entertainment, travel or gifts, you’ll probably be paying through a combination of cash, debit cards, credit cards and payment merchants like Zelle^®.

With every digital payment transaction, the odds of financial fraud increase. Nearly 25% of Americans were the victims of scams during the 2020 holiday season, according to a survey by Experian.1 Why the increase? Scammers know people are busy and may not pay as close attention to their transactions ― especially when their total number of transactions is higher than usual.

Fortunately, there are ways you can keep financial fraud from stealing your holiday joy:

Watch out for fakes

Scammers have gotten good at mimicking legitimate emails, websites and even delivery notifications, all intended to part you from your financial information. If you’re unsure if an email or text message is legitimate, check the sender’s phone number or return email address. If something looks off, it’s probably a fake. When shopping online, always look for the “lock” symbol and “https://” in the website URL, indicating the site is secure.

Give mindfully

Most of us increase our charitable donations around the holidays. In fact, Americans gave $2.7 billion on Giving Tuesday last year.² If you’re unsure if a donation link you received through text or email is legitimate, visit the organization’s website directly to find its giving page.

Choose one payment method

We recommend selecting one payment method for all your holiday purchases, such as a specific credit card. Using one designated payment method makes it easier to track transactions and allows you to contain the damage if scammers get your financial information.

Log on to your accounts

With increased spending it’s a good idea to check your accounts more frequently. Keeping a close eye on your transactions can help you identify potential fraud before it becomes a bigger problem.

Use money transfer apps wisely

Sharing the check for some holiday cheer? When using money transfer apps such as Zelle^®, remember that it’s almost like spending cash. Only send funds to someone you know and trust. Guard your information closely and report any unexpected transactions as soon as you spot them. Learn 6 ways to protect yourself from Zelle^® fraud in this article.

Set up activity alerts

Most debit and credit cards allow you to set up notifications whenever your card is used to make a purchase. Real-time alerts can help you identify suspicious activity and freeze your accounts to avoid additional fraud by a holiday grinch.

We work hard to protect our clients against fraud every day. Keep your holiday bright by visiting CIBC US for more fraud prevention tips.

Sources:

¹ Experian. “1 in 4 Americans Report Falling Victim to Fraud During the Holidays Opens in a new window.,” November 2020.

² CNBC. “Americans donated $2.7 billion on ‘Giving Tuesday.’ Here’s how donors can score a write-off if they don’t itemize deductions Opens in a new window.,” December 2021.

Zelle^® and the Zelle^®-related marks are wholly owned by Early Warning Services, LLC and are used herein under license.