Warning to shoppers and businesses: Beware of fraudulent behavior ahead Black Friday and the Christmas rush.
According to Experian (which analysed data from National Hunter fraud prevention services), credit card fraud will likely peak during this time.
According to it, the credit card fraud rate grew by 33% over the previous three months. The trend was expected to increase and peak in November/December.
Black Friday fraud is a warning to shoppers and business owners.
It rose to 107 percent between December 2016 & December 2020, which is indicative of the severity of the problem.
Experian’s Head of Identity and Fraud, Eduardo Castro stated that “The UK is currently experiencing a severe flood of fraud and it shows no signs of slowing down. As many people go online to shop for Christmas this month, it is very likely that this trend will only get worse.”
Both consumers and businesses are at risk. There is a lot of data being transmitted online, so it is critical that organisations verify customers’ identities as soon as possible. Consumers should also do their best to safeguard their personal information.
Compare the Market conducted separate research and found that millions of Americans have been victims to financial fraud over the last 12 months.
9 percent of respondents had their payment systems compromised in fraud over the last year. This equates to nearly 5 million people, if you extrapolate the national figures to the adult population.
In 90 per cent of cases, money was stolen via online fraud, and on average cost victims £608 each. The theft resulted in 50% falling into debt.
Online payments made up 29 per cent of the frauds – up from 21 per cent two years ago – whilst 19 per cent were contactless payment scams and 17 per cent were phishing scams.
Comparison site urges spenders to remain vigilant online, as Cyber Monday approaches.
James Padmore (head of money, Compare the Market) stated:You should not fall for the trap of huge discounts or deals.
“Some scammers are very clever at making fake websites and scams look real. With online fraud on the rise, it is vital to be vigilant.”
Fraudulent credit card applications are likely to spike during the Black Friday/Christmas period