Holiday shopping often leads to increased credit card usage, both online and in stores. Unfortunately, the increase in spending can create more opportunities for fraudsters to steal credit card information through scams, skimming devices, and other schemes.
The good news is that a few simple habits can go a long way toward protecting your accounts and helping you spot fraud before it becomes a bigger problem.
Common Holiday Fraud Risks
Credit card fraud can happen in several ways, especially during the busy holiday shopping season. Common risks include:
- A lost or stolen credit card being used without your permission
- Unauthorized online purchases made with your card number
- Card skimmers placed on ATMs, gas pumps, or payment terminals
- Phishing emails or text messages designed to steal personal information
- Fake websites that collect payment details and login credentials
- Account takeover scams, where criminals gain access to your account and make changes without your knowledge
While fraud can happen in several ways, taking a few precautions can help reduce your risk and make it easier to spot suspicious activity quickly.
Simple Ways to Protect Yourself
Monitor Your Accounts Frequently
One of the easiest ways to catch fraud early is to review your account activity regularly. Check your transactions through online banking, mobile banking, or your monthly statements.
Enroll in account alerts to receive notifications about unusual activity or purchases made with your card. Honor members can also use real-time card alerts and card controls through digital banking to monitor activity and quickly respond to suspicious transactions.
Be Careful with Personal Information
Never give your credit card number, PIN, password, or account information to someone who contacts you unexpectedly.
If you need to contact your card issuer, use the phone number printed on the back of your card.
Shop Securely Online
Before entering payment information online:
- Verify that the website is legitimate.
- Look for “https://” in the website address.
- Check for a lock icon in your browser.
- Avoid clicking links from unexpected emails or text messages.
If an online offer seems too good to be true, take a moment to verify the retailer before making a purchase.
Protect Your Physical Card
Keep your wallet or purse close to you when shopping or traveling. After making a purchase, put your card away immediately and confirm it has been returned before leaving the register or restaurant.
If your card is lost or stolen, report it as soon as possible.
Watch for Card Skimmers
Skimming devices are sometimes attached to ATMs, gas pumps, and payment terminals to capture card information.
Before inserting your card:
- Check for loose or damaged card readers.
- Look for signs of tampering around the keypad or card slot.
- If something appears unusual, use a different machine.
Pro Tips for Extra Protection
Looking for additional ways to protect your accounts? These simple security habits can help reduce your risk of fraud.
- Use your chip card whenever possible. The chip creates a unique code for each transaction, making it more difficult for criminals to create counterfeit cards.
- Consider using a digital wallet when making purchases. Digital wallets add an extra layer of security by helping protect your card information during transactions.
- Use tap-to-pay when available. Contactless payments use secure technology that can help reduce the risk of card data being compromised.
- Create strong, unique passwords for online banking and shopping accounts.
- Never share your debit card or PIN with anyone.
- Shred receipts and documents containing account information before disposing of them.
- Memorize your PIN rather than writing it down.
- Review your monthly statements carefully for unauthorized transactions.
What to Do If You Notice Fraudulent Charges
If you see a transaction you don’t recognize, act quickly.
1. Contact Your Card Issuer Immediately
Call the phone number on the back of your card to report the suspicious charge. Your issuer may cancel your current card, issue a replacement card, and investigate unauthorized transactions.
2. Review Your Account Activity
Check recent transactions to identify any additional charges you did not authorize.
3. Place a Fraud Alert
Contact one of the major credit bureaus to place a fraud alert on your credit report. This helps make it more difficult for criminals to open new accounts in your name.
4. Monitor Your Credit
Review your credit reports for unfamiliar accounts, inquiries, or other signs of identity theft.
5. Consider a Credit Freeze
If you suspect your personal information has been compromised, a credit freeze can help prevent new credit accounts from being opened in your name.
Want to learn more about credit freezes? Read our article: Protect Your Money: How to Freeze Your Credit
6. Update Automatic Payments
If you receive a replacement card, remember to update any recurring payments tied to your old card, such as subscriptions, utility bills, and streaming services.
Shop With Confidence This Holiday Season
Credit card fraud can happen at any time, but the increased shopping activity during the holidays can create more opportunities for scammers. By monitoring your accounts, protecting your personal information, and acting quickly if something seems suspicious, you can enjoy the season with greater peace of mind and confidence.