Consumers Targeted for Holiday Shopping Fraud

A new 2024 AARP Fraud Watch Network shows 82% of U.S. consumers have experienced some type of fraud this year, including gift card scams, counterfeit products, phishing attempts disguised as delivery notifications, and more. The research also shows many consumers are not aware of the types of fraud they may come across when shopping online.

“Criminals are using a combination of tried-and-true methods and new technology to steal billions of dollars every year—and they’re counting on consumers’ unfamiliarity with scams to succeed,” says Kathy Stokes, AARP director of fraud prevention programs. “It’s important to remain mindful that scams are everywhere and to share what you know with your family and friends.”

This year, more than half (56%) of consumers reported receiving a notification from someone saying they were from USPS, FedEx, or UPS about a shipment problem that ultimately turned out to be fraudulent, which nearly doubled compared to 2022 (29%). Likewise, nearly two-thirds of consumers (64%) are unaware that online retailers will not ask for personal login information to provide them with customer support.

Ads on social media continue to be a source for targeting consumers with over a third (35%) saying they experienced fraud when purchasing a product through an online ad. 

In addition to the survey on consumers’ personal experiences with scams, AARP asked survey respondents to answer a 10-question fraud knowledge quiz. Knowledge on some questions has declined over the last two years.

AARP offfers the following advice for consumers:

• Retailers will never request your login information to provide customer support.
• Be wary of free trial offers as they often lead to expensive subscriptions that are difficult to cancel.
• Peer-to-peer payment apps do not carry the same consumer protections as a credit card. Only use these apps with people and businesses you know and trust.
• It’s risky to do a web search for a company’s customer support number because criminals buy ads impersonating those companies. Check billing and credit card statements for customer service, use the number on the back of your credit cards, or go directly to the company online by typing in their web address.
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To read the full report and learn more visit www.aarp.org/holidayscams2024.