VISA warns cardholders to stay alert this holiday season

Visa has warned cardholders to take precautions against fraudsters this holiday season. The merchant issued a report stating that criminals will take advantage of the rapid influx of shopping for the holiday season to obtain cardholders’ sensitive information. Visa’s Payment Fraud Disruption team (PFD), which is responsible for the identification and disruption of fraud, has issued helpful guides to help cardholders avoid holiday fraud.

What techniques do fraudsters use during the holiday season?

Criminals can use a variety of methods to skim cards or scam cardholders during the holiday season. Here are the most popular tactics used by fraudsters and the steps cardholders can take to prevent crime.

According to the PFDs 2023 Holiday Threats Report and Fraud Prevention Guides, digital or ATM skimming, phishing attacks, one-time-passcode (OTP) bypass, and physical threats are high during the holiday season. Skimming attacks occur when criminals use a skimming device on a POS machine such as an ATM. Digital skimming occurs when criminals insert a malicious code into a merchant website in an attempt to steal cardholders’ information.

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Beware of one-time-passcode (OTP) scams

Banks commonly send out a one-time passcode or OTP for user authentication during a purchase. Criminals have been taking advantage of this method to steal from cardholders. They can send cardholders fake messages that look similar to the OTP messages from banks. Criminals may also contact victims via phone calls to lure them into providing them with their bank information. It’s therefore essential to ensure the OTP message is authentic before inserting a code.

Fake websites and discounts

According to Visa’s PFD, AI has made it easier for criminals to create fake websites that look similar to popular retailers. Criminals can also target cardholders by impersonating well-known retailers and sending users offers with fake discounts. Consumers are warned to ensure websites are authentic and to not click on links from emails or SMS messages.

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How to prevent card skimming and fraud this holiday season

1. Double-check the website address that you are visiting before making holiday purchases. Fake websites tend to have incorrect spelling or grammar, in the URL.
2. Check the safety rating of a website by using updated anti-virus software.
3. If you receive a call or message from your bank, contact them directly to ensure its authenticity.
4. Do not provide an OTP over the phone or through an email address. Contact your bank directly if an OTP message looks suspicious.
5. Review bank statements and credit reports regularly especially if you are making a lot of purchases for the festive season.
6. Check ATMs for signs of tampering and skimming devices before inserting your card.

What to do if you’re a victim of card fraud

Some banks offer purchase alerts that notify cardholders when purchases are made on their accounts. Sign up for these to ensure that you spot any suspicious activity on your account. If you receive suspicious alerts or if you’re a victim of card fraud, alert your bank immediately so that they can freeze your card.

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