New digital scams surge during peak shopping period
The new list of scams includes artificial intelligence-driven fraud, where scammers create fake retailer websites, and phishing emails or deepfake videos impersonating brands or influencers. Fraudsters can also embed malicious links in QR codes, a method that is “extremely common,” Zelvin said. “When you scan the QR code, there is indeed a URL or website link, but people won’t look at it because it’s small,” he said.
Other methods include counterfeit products on the TikTok store and digital pickpocketing, where criminals use contactless payment devices to steal phone data, which is increasingly common. Zelvin said instances of digital pickpocketing can occur in crowded places such as shopping malls or public transportation. “It used to be someone was stealing your purse or purse, now they’re stealing what’s on your phone,” he said.
He noted that between Thanksgiving and Cyber Monday last year, 2.6% of online transactions in Canada were flagged as fraudulent, an annual increase of 51%. He noted that older consumers are disproportionately targeted.
Zelvin said fraudsters were “seizing the opportunity” as the number of people online increased significantly during peak buying periods.
A report from the Boston Consulting Group shows that despite a slight decline in program participation, the majority of Canadian consumers still plan to shop during Black Friday and Cyber Monday this year.
About 77% of Canadian consumers said they planned to purchase items on sale, down 6 percentage points from last year. The report found that consumers plan to spend an average of $305 on year-end sales events, down from last year and reflecting “cautious but stable sentiment.”
How to avoid scams this season
To help avoid falling victim to a scam when shopping, Zelvin points out several steps you can take. This includes not clicking on a link in an email or text message, but going directly to the retailer’s website. Verifying website links and looking for relevant HTTPS security indicators can help protect consumers.
He also recommends using a credit card rather than a debit card or payment app, as they tend to have stronger fraud protections. “Credit cards are a great way to pay because they don’t move quickly, but instant payment systems, wire transfers, gift cards, some of these payment apps and cryptocurrencies — the money just disappears,” Zelvin said.
