During peak transaction periods, in seasons such as Black Friday Sales, many businesses offer various forms of sales promotions, attracting multiple buyers from diverse communities to interact with their platform. During such seasons and traffic, shady and fraudulent entities may attempt to exploit unsuspecting community members, creating a negative experience for those who may fall victim.
Due to such challenges, the need for adequate fraud watch and prevention becomes a key concern for these online businesses. And as a result, support teams are expected to take note and have action plans regarding such moments. So, in our article today, we shall be discussing common Black Friday frauds, how to spot them, and the role of FinTech support in preventing customer loss and theft.
Black Friday, known for its enticing deals and discounts, is also a peak time for fraud, as cybercriminals take advantage of increased online shopping activity. Common fraud risks such as phishing scams arise, where shoppers receive fake emails or texts posing as legitimate retailers offering “exclusive deals.” These messages often contain links that lead to fake websites, which collect sensitive information like credit card numbers and login credentials. Malware can also be disguised as shopping-related apps or links, allowing hackers to gain access to personal data or even financial accounts. Additionally, criminals may set up fake online stores that mimic real websites, tricking consumers into purchasing items that will never arrive.
Credit card fraud and account takeovers are also major risks during Black Friday. With many people shopping from various devices, unprotected connections such as public Wi-Fi networks become prime targets for cybercriminals to intercept payment data. Attackers might also use brute force attacks or credential stuffing, leveraging leaked passwords to take over accounts and make unauthorised purchases. To stay protected, shoppers are advised to use strong, unique passwords, avoid clicking on suspicious links, and ensure they are shopping on secure, HTTPS-protected sites.
Some of the most common scam strategies employed by Black Friday fraudsters to exploit the season’s heightened shopping volume include phishing schemes, fake websites, and imposter customer service contacts.
Phishing emails and texts are especially effective, with over 36% of cyberattacks in 2022 involving phishing, a rate that spikes during holiday shopping periods. Scammers craft messages that appear to come from major retailers, promising “exclusive deals” or alerting recipients to urgent issues with an order, prompting them to click on a link or enter sensitive information. These links often lead to fake login pages or forms that steal credit card information and login credentials, with approximately 75% of users failing to spot phishing red flags under the pressure of high-stakes sales.
Fake websites and online stores are another widespread technique that capitalises on consumers’ eagerness to find the best prices. Fraudsters set up nearly identical copies of trusted retail sites or create entirely fictitious ones, promoting steep discounts and limited-time offers. According to recent studies, about 15% of shoppers have accidentally made purchases from fake websites, which not only charge their cards without delivering goods but also capture personal information for future fraud. These scams often circulate through social media ads and email links, leveraging the fact that 53% of shoppers rely on social media recommendations for holiday shopping.
And lastly, another scam strategy involves fake customer service contacts that target consumers needing assistance. Criminals create social media profiles or buy ad placements to make fake customer support lines appear legitimate. When shoppers search for help with an order, they may call or message one of these fake lines and end up sharing sensitive details with scammers. This strategy can be particularly effective, as research shows nearly 30% of holiday shoppers contact customer support for assistance, especially when dealing with late shipments or order issues. In these interactions, fraudsters request credit card numbers, order confirmations, and other personal information under the guise of resolving the issue, preying on the urgency and trust associated with customer service during the holiday shopping rush.
Fintech support representatives play a crucial role in preventing fraud, especially during high-risk shopping periods like Black Friday. Their responsibilities go beyond assisting customers, focusing on implementing preventive measures, educating users, and collaborating with internal teams to detect and address fraudulent activities promptly. Key roles include educating customers on fraud risks, monitoring suspicious activities, verifying transactions, and working closely with fraud prevention teams to create comprehensive defences against scams.
Educating customers on fraud risks is one of the most important roles of fintech support reps, helping users recognize common scams such as phishing emails, fake websites, and unusual requests for personal information. By providing clear, actionable advice, support reps empower customers to detect and avoid suspicious communications, ultimately reducing the likelihood of scams during high-traffic shopping seasons. Support reps also share secure online shopping tips and promote security features like multi-factor authentication, adding layers of protection against unauthorised access. Monitoring and flagging suspicious activity is another essential responsibility, as support reps are often the first to hear from customers about unfamiliar charges or failed transaction attempts. Trained to recognize patterns indicative of fraud, reps can quickly identify and escalate potential threats, helping to block unauthorised transactions before they escalate.
Verifying customer identities and transactions is also essential to secure interactions in fintech. Support reps use security questions, identity verification tools, and behavioural analysis to confirm that requests are legitimate, and during high-risk seasons, they may implement additional steps for larger or unusual transactions. This verification process is vital in preventing account takeovers and unauthorised purchases, enhancing transaction security. Support reps also work closely with fraud prevention teams to strengthen security efforts; when reps observe suspicious patterns or receive fraud reports, they coordinate with these teams to investigate threats. The insights they gather help fraud prevention teams refine security protocols, detect emerging scams, and issue customer alerts, building a comprehensive and collaborative approach to account safety that protects customers throughout Black Friday and beyond.
To avoid falling victim to fraud during Black Friday, customers can adopt several practical tips that significantly enhance security. One of the most effective strategies is to stay vigilant about phishing attempts. Before clicking on links in emails or texts, shoppers should verify that these messages come from legitimate retailers. Checking the sender’s email address, looking for typos, and hovering over links to inspect the URL can help identify fake communications. Additionally, using the retailer’s official app or typing the website directly into the browser is a safer way to access sales without risking exposure to fake links.
Another key tip is to shop only on secure, reputable websites and avoid deals that seem too good to be true. Shoppers should ensure that a site’s URL begins with "https" and look for a padlock icon in the browser's address bar, which indicates a secure connection. Avoiding public Wi-Fi for online shopping is also critical, as these networks can be more vulnerable to hacking. Using a virtual private network (VPN) can add an extra layer of security for those who need to shop on-the-go.
Customers can also safeguard their accounts by using strong, unique passwords and enabling multi-factor authentication (MFA) on any shopping, banking, or payment platforms they use. MFA requires a second form of verification, making it harder for cybercriminals to access accounts even if they obtain login credentials. Monitoring bank and credit card statements for unfamiliar transactions during and after the shopping season can help detect any potential fraud early, allowing shoppers to report suspicious activity and minimise potential losses. By taking these steps, shoppers can better protect themselves from fraud and enjoy safer Black Friday shopping.
In summary, protecting users from fraud is essential for businesses and fintech organisations as it builds customer trust, safeguards brand reputation, and reduces financial losses. Fraud incidents not only lead to financial losses, but can also result in reputational damage that deters future customers and partners.
Therefore, organisations must ensure robust security, as the sensitive financial data and transactions which they handle makes them prime targets for cybercriminals. By prioritising fraud prevention, businesses and fintechs protect their bottom line, foster long-term relationships, and contribute to a safer financial ecosystem.
