Top five festive scams 2023

It is expected that almost £100 million will be stolen from UK shoppers this festive period as a result of fraud and cybercrime, with the National Cyber Security Centre (NCSC) warning that cybercriminals are now going as far as utilising Artificial Intelligence (AI) to generate increasingly convincing scams this Christmas.

With the pressure of last-minute gift shopping, it can be easy to jump at the chance of a bargain, or to make a payment with a lesser-known company. However, it is vital to take the extra two minutes to assess the legitimacy of deal or website. Doing so could ensure that you are safeguarding your personal details and money.

Explore our top five scams below to avoid falling victim this festive season

1. Social media adverts
   Despite social media platforms having policies in place that prohibits fraudulent adverts, many still find their way to users’ timelines and homepages. The lack of oversight on social media marketplaces and the influx of novice shoppers online looking for the best deals anticipates an acceleration of victims seeking affordable gifts this Christmas. While the goods in these ads will appear at a discounted rate, they may never be delivered.
   
   Some of the latest fake social media ads that have appeared this festive season have been listed here.
2. Phishing emails and smishing
   As people increasingly enter their card details online for purchasing goods and services over the festive period, fraudsters seize this opportunity to take advantage. Attacks, via email or SMS, are likely to claim that there is an issue with the victims’ bank account or payment method. Fraudsters will state that the victim is required to provide their personal details to gain access to their account again, when really, they are providing the fraudster with access to their accounts.
   
   In 2022, The Office for National Statistics (ONS) found that 32% of people had been targeted with phishing emails impersonating financial institutions. Additionally, it should also be noted that 54% of people received phishing emails from a delivery company. With people expecting many deliveries around this time of year, it can easily be assumed that a phishing email is related to an order that has been made.
   
   If you’re not expecting a call from your bank, it could be a scam. If you’re unsure, hang up and call your bank on a trusted number listed on their website.
3. Fake websites
   By the end of Q4 in 2022, there was approximately 1.35 million unique phishing sites detected worldwide - meaning the actual figure for the amount of fake websites is much higher.
   
   You can make sure that you’re shopping from a legitimate website by looking out for the closed padlock icon on the left side of address bar. Cybercriminals will spoof legitimate company domains that can appear convincing at a glance. It can be easy to miss if you’re last minute panic buying gifts.
   
   If you think you’ve come across a suspicious website, you can report the site to the NCSC here.
4. Loan fee fraud
   The FCA found almost half (47%) of UK adults to feel pressured to spend above their means during the festive period, with over a quarter (29%) of parents turning to, or considering taking out loans at Christmas time. Loan fee fraud is when those applying for a loan are asked for an upfront fee for a loan or credit that they never receive. The FCA found that on average, loan fee fraud typically results in an average of a £255 loss for those who are already struggling financially.
5. Charity fraud
   The Charitable Aid Foundation found that 71% of the UK regularly donate money to charity, meaning that the UK is a prime target for carrying out charity fraud and to take advantage of people’s goodwill and generosity over the holidays. 
   
   If you’re unsure as to whether a charity is legitimate, you can check the charity name and registration number before committing to any payments here.

For further information on any of the topics discussed, and how to keep yourself protected from such scams please contact, Tim Robinson or your usual Crowe contact.