“According to the Internet Crime Complaint Center’s (IC3) 2020 report, non-payment or non-delivery scams cost people more than $265 million. Credit card fraud accounted for another $129 million in losses.” – FBI
Retailers are getting everything ready as we approach Black Friday, Cyber Monday, and the holiday season. Unfortunately, cyber criminals are also preparing to do their annual ‘shopping’ by scamming unsuspecting victims out of their hard-earned money. Both businesses and customers need to be prepared for what’s coming, and one of the best ways to do this is through chat fraud alerts.
There are lots of holiday scams you need to watch out for, from those that are tried and tested to the more innovative examples coming out now. Here are some of the biggest Black Friday and festive season scams playing out.
1. Gift card/gift voucher scam
Gift cards have long been a popular option for the festive season, particularly when you’re unsure of what to give someone but still want to show you care. However, the gift card scam involves getting people to pay by sending a gift card but then never delivering the goods. The gift cards are then used by the scammers as they have fewer protections than other payment options.
2. Delivery notification scam
This time of year, you’re expecting a lot of parcel deliveries, which means you can expect several notification deliveries. Fraudsters are now sending out messages that look like they’re from a legitimate delivery company but it includes a fake link that solicits your credit card details or has malware to access your personal details.
3. Charity donation scams
Giving to charity is encouraged over the festive period but scammers are ready to take advantage. This is where fraudsters get in touch and put pressure on you to donate quickly. They often use sentiment to pull at the heartstrings to seal the deal.
4. The retailer scams
There are often shortages at this time of year, particularly with the supply chain still under pressure. This is where fake eCommerce retailers come in. They set up fake websites that lure unsuspecting buyers who make a payment, only to not have anything delivered or receive a knock-off item.
5. Holiday job scams
With so many people unemployed and in desperate search of work, temporary job scams are on the rise. Fraudsters share job opportunities on messaging platforms where they say the applicant must pay for supplies or training fees.
While in-app fraud alerts are common, the problem is that customers either don’t have notification settings on or simply miss the notification. That’s why the most sophisticated way you can protect your customers today is by using chat fraud alerts. Here’s why many companies, including financial institutions, are using chat for fraud mitigation and dispute resolution:
It’s much faster to send your customers a message via chat rather than contacting them over email or phone, as chat messages boast a 98% open rate (compared to 20% over email).
Chat is a two-way messaging platform which means that your customers can also engage directly with you in real-time, resolving fraudulent queries that much faster and more conveniently.
Chat is a much more cost-effective alternative, particularly when you’re dealing with customers across the globe where higher tariffs will be incurred.
Businesses can reach a much higher number of customers over chat than they would any other platform. This is great if you need to alert customers to an ongoing scam.
Chat is a user-friendly and proactive way to engage with your customers and makes them much more amenable to your input and assistance.
With chat, you have much more visibility which means that any fraudulent activities are picked up and resolved without too much conflict.
Chat can partially or fully eliminate the need for contact centre activity as the customer can verify or deny the transaction in real time and capture additional validation information from the cardholder.
Chat enables the customer to feel more empowered throughout the process as they’re involved in every step.
Chat provides a critical layer of security through purchase verification. This is an effective fraud mitigation tool that protects customers.
The chat platform also provides businesses with the opportunity to alert customers to prevailing fraud techniques ahead of time. Valuable cyber security tips and advice will also establish customer loyalty and better online practices. Some of the advice you could share through the chat platform includes:
Phishing scams encourage you to click on a link or attachment on social media or email which could download malware onto your device. Be wary of any suspicious links or communication, especially asking for personal information.
No banks will contact you asking for your passwords, pins or other personal information. Rather get in touch with the company directly and verify anything that is being requested.
If you’re buying festive season gifts or Black Friday deals, make sure the website you’re buying from has an HTTPS address or rather go with sites you know are reputable.
Do some online research if you’re buying from a company for the first time – this includes checking any reviews and making sure they’re legitimate.
Never send gift card details to pay for items as the details will be stolen and you’ll be left without your goods.
Get tracking numbers for any item that you buy online and follow the delivery process from start to finish. Remember there are supply chain disruptions but you should still get your goods!
In this modern business environment where digital threats lurk daily, it’s vital that organisations are implementing the most cutting-edge cyber security technologies and solutions to protect themselves and their customers. Clickatell Protect is just that! This ground-breaking solution allows your customers to transact using secure chat platforms, boasting end-to-end encryption and multi-factor authentication. Fraud mitigation and fraud alerts are supported by this chat platform so that you’re keeping your customers, their data and finances secure at all times.
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