Angie Van Leuven, VP, Treasury Management
The holidays are a magical time of year filled with family gatherings, shopping for gifts, and indulging in seasonal treats – but you should add holiday fraud prevention to your list of to dos!
While you’re enjoying the holiday season, fraudsters are busy finding ways to take advantage of the excitement and distractions. With the surge in activity during the holidays, online, in stores, and in the office, the season creates the perfect opportunity for scammers to strike.
Better protect yourself this season with our holiday fraud prevention tips.
Watch Out for Rising Check Fraud
Think you’re safe with good old paper? Think again. According to a recent report from the Wall Street Journal, among all the different types of fraud, check fraud is still a huge problem – as fraudsters flock to popular messaging and social apps to promote various check scams.
While paper checks might seem old-fashioned, they still make up about a third of all business-to-business transactions, according to the Association of Financial Professionals.
Fraudsters have gotten a lot more creative, using tactics like altering real checks or making fake ones that are harder to spot. And when it comes to the holidays, they know people are making more transactions this time of year, so it’s easier for fraud to slip through unnoticed. It’s more important than ever to stay alert and protect your finances.
Spotting Fake Online Stores
Fake merchant scams happen when fraudsters create fake websites that look like real brands and offer deals that seem way too good to be true, like huge discounts on popular products.
These sites trick you into entering your payment info, which they then use for identity theft or to make unauthorized purchases. In some cases, you might never get the product you paid for or get a cheap knockoff instead.
Does that deal look to good to be true? It actually could be a fake. Check the website for misspelled URLs, incorrect grammar, and be sure the site is secure with “https” in the URL.
Fraudsters also use social media ads to make these fake stores look more legit. To avoid getting scammed, always double-check a website’s authenticity, make sure they have secure payment options, and steer clear of offers that seem too good to be true.
Scams That Play on Your Emotions
Romance and family emergency scams take advantage of people’s emotions, especially around the holidays when loneliness can hit hard.
Fraudsters create fake profiles on social media or dating apps, build trust, and then pull heartstrings with stories about a family emergency or a romantic relationship that “needs” financial help.
These scams can be pretty devastating, as victims end up sending money or personal info, thinking they’re helping someone they care about. The emotional impact is even worse when they realize they’ve been deceived, leaving them not only financially drained but emotionally crushed, too.
Simple Steps for Holiday Fraud Prevention
Luckily, there are simple steps you can take to protect your finances this holiday season.
One of the easiest ways is to set up account alerts through online and mobile banking. These real-time notifications let you keep an eye on transactions, so you can spot anything strange and act fast. Also, regularly review your account statements and be cautious about sharing personal info online.
If you have a business, consider using tools like Positive Pay to spot unauthorized checks and ACH transactions.
Remote Deposit Capture allows you to deposit checks safely from your office, avoiding the risks of mail. If possible, switch to digital payment methods like ACH or cards instead of paper checks, which are easier for scammers to intercept.
Recognizing the Signs of Fraud
Spotting fraud early can save you time and money. Look out for these red flags:
- Checks you’ve written aren’t received.
- Unusual delays in receiving new checks.
- Transactions you don’t recognize.
- Duplicate deposits of the same check.
- Missing checks, altered check appearances, or any strange account activity.
If you notice any of these signs, contact your bank immediately. Early detection can make a world of difference and your team at Waterford can help.
Remember this: After fraud occurs, your best chance of fighting it and attempting to recoup funds happens when you notify your banker within the first 24 hours of the incident.
If you want help exploring and implementing holiday fraud prevention services, give us a call at 419-720-3900 or you can explore more on your own.
By taking a few simple steps, you can enjoy the holiday season with confidence, knowing your finances are secure. This will give you peace of mind so you can focus on spending quality time with loved ones, making memories, and truly embracing the holiday spirit without stressing about scams.
About the Author
Angela Van Leuven is a Vice President of our robust Treasury Management department in Troy, Michigan. On the job, she is passionate about providing exceptional customer service and enjoys the relationships she has made with business customers and her community for over two decades.
She has served the Clarkston area for over 25 years through initiatives in the local Chamber and always has a fresh pot of coffee on.
If you’d like to connect with Angie or learn more about fraud prevention, please contact us here.
