Thursday, November 21, 2024

UK Consumers Facing Record Losses Due to Holiday Scams

The UK’s National Cyber Security Centre (NCSC) and Action Fraud are stepping up their efforts to warn shoppers about the threat of online fraud as the holiday shopping season ramps up. They’ve released alarming figures showing that losses to cyber criminals soared to over £11.5 million during November and December of 2023. That’s an increase of about £1 million from the previous year. Shoppers focused on clothing, tech, and cars were among the hardest hit, with victims averaging a loss of £695. The 30 to 39 age group reported the most incidents, followed closely by those aged 40 to 49.

About 43% of the reported cases linked to social media platforms, while 19% involved online marketplaces. In response, the NCSC has kicked off a national campaign aimed at equipping consumers with simple steps to safeguard their online activities. Turning on multi-factor authentication (MFA) for your accounts is a basic yet crucial step.

Richard Horne, the NCSC CEO, highlighted the tension during this time of year. “People want to hunt for good deals, but that eagerness gives cyber criminals the perfect opportunity to strike,” he said. Many of these scams are becoming more sophisticated, sometimes leveraging AI, making them tough to spot. He urges everyone to follow their online shopping guidelines, including using two-step verification and creating secure passwords with three random words.

Home Office minister for fraud, Lord Hanson, emphasized that the fight against online fraud is ongoing. He encouraged shoppers to trust their instincts: “If something feels off while you’re shopping online, stop immediately, break contact, and don’t click any links.” He reiterated the government’s commitment to combatting this issue, working alongside industry and other partners.

The NCSC recommends staying alert to common tactics used by fraudsters. Many will create a false sense of urgency with limited-time offers or suggest items are scarce. The best approach is to remain skeptical. If something seems too good to be true, it probably is. If any red flags come up, pause, research the seller through trusted review sites, and avoid clicking on suspicious links.

For those interested in more details, the Stop! Think Fraud microsite offers further resources on this year’s campaign. Rocio Concha, director of policy and advocacy at Which?, supports the NCSC’s initiative but believes the government needs to take more responsibility. “We should tackle fraud as a national priority,” she said, advocating for better coordination across sectors to share data and prevent scams. She calls for new duties for telecom and online advertising providers to ensure they verify users’ legitimacy, much like the obligations placed on banks and online platforms.