Visa tips customers on festive holiday shopping security 

Visa card customers have been urged to take extra precautions and alertness to guard against expected fraudulent activity during this festive season.

Fraudsters are expected to use advanced technologies to exploit consumers’ information during the season; given that Visa’s data showed an 11 per cent increase in fraud rates during the 2022 holiday season, it could be worse this year!

A report titled, ‘Holiday Edition Threats’, initially released in San Francisco, USA on November 16, 2023, was launched in Kampala on December 7. According to the report, heightened scam activity is expected across both card-present (CP) and card-not-present (CNP) transactions. It also lists popular fraud tactics expected between November 2023 and January 2024 due to the rapid increase in e-commerce activities and in-person spending across retail and hospitality.

Alongside the report, Visa officials also unveiled a list of top 10 shopping habits consumers can follow to practice safe and secure shopping.

Presenting the report, Bryan Wesonga, corporate communications lead at Visa East Africa, quoted Paul Fabara, chief risk officer at Visa, as having warned, “Crooks prepare all year for the holiday shopping season, taking advantage of increased activity and consumers who let their guard down searching for the perfect gift.” 

Warning that threat actors will seek to exploit consumers’ increased interest and urgency in finding deals and one-of-a-kind gifts, the report highlights five key threats. These include digital skimming, whereby due to the increase in online shopping, there’s a greater opportunity for scammers to successfully compromise account data from e-commerce merchants and monetize it.

Second is phishing and social engineering. The advancement of artificial intelligence over the past year provides threat actors with the ability to create highly customized phishing campaigns, making it harder for consumers to spot fakes. Fraudsters also create phishing websites, often using malvertising (malicious advertising) and other illicit search engine optimization tactics on retail or service websites to entice victims. 

The third threat is ATM and point of sale (POS) skimming. With the increase in foot traffic at brick-and-mortar merchants and ATMs, threat actors will likely target ATM and POS terminals with skimming attacks. 

Fourth is one-time-passcode (OTP) bypass and provisioning fraud. Visa identified many OTP bypass schemes to gain access to cardholders’ accounts. In this scheme, OTP templates are sent to the victims that appear to be associated with the desired purchase.

Last is physical theft, whereby threat actors may attempt to physically steal payment cards and/or phones from unsuspecting consumers in crowded retail stores, shopping malls, or parking lots. 

Wesonga urged customers to adhere to Visa’s ‘10 Habits for Good Security Hygiene’ which will help them stay safe not only during the festive season but also throughout the year. 

• Only shop from trusted and secure websites. Look for “https” in the URL and a padlock symbol in the browser bar. These symbols indicate that the website is secure and uses encryption to protect your data.

• Be wary of deals that seem too good to be true. Scammers often lure victims with incredible deals. If a deal seems too good to be true, it probably is.

• Use secure payment methods. Payment cards often offer better fraud protection than other methods. Conduct thorough research before partaking in direct money transfers, wire transfers and peer-to-peer mobile apps as they are disproportionately targeted by fraudsters.

• Be cautious with emails and messages. Phishing scams are common during the holiday season. Never click on links in unsolicited emails or messages. Always verify with the sender directly through their customer service line or mobile app before providing any personal information.

• Keep your devices and software updated. Regular updates often include security patches that protect against new threats. Make sure your devices and software are up to date.

• Use strong and unique passwords and enable two-factor authentication (2FA). Each of your online accounts should have a unique password and enabled with 2FA to make it more challenging for fraudsters to access.

• Monitor your bank and credit card statements. Regularly check your statements for any unauthorized transactions and enable transaction alerts. If you see anything suspicious, report it immediately.

• Be wary of fake charities. Scammers often take advantage of the holiday season to set up fake charities. Always research a charity organisation before making a donation. Use resources like Charity Navigator to help ensure your goodwill is going to a good cause.

• Protect your personal information. Never provide personal information unless it’s necessary. As fraudsters continue to use artificial intelligence to impersonate voices, be wary of any requests for personal information – even if the message claims to be from a friend or family member.

• Avoid shopping on public Wi-Fi. Public Wi-Fi networks are often unsecured and can be a target for hackers. It’s safer to shop from a secure home network or use a VPN.