Five ways to protect your credit card payments from fraud this Christmas
New research from financial broker Ocean Finance indicates that credit card fraud increases by a staggering 20 per cent over the festive holiday period, leaving many consumers vulnerable to financial scams. The increase in fraud over Christmas and New Year is alarming but not surprising, says Ben Fleming, Ocean Finance’s financial crime analyst.
He explained: “Christmas is a time when people are spending more, both online and in stores, making it easier for fraudsters to exploit the situation. Increased pressure to provide presents can also be stressful, and lead many Brits to seek deals, and take more risks with the chance of getting something cheaper than usual. Add to that the high volume of transactions and the distracted, hurried nature of holiday shopping, and it’s the perfect storm for credit card fraud.”
READ MORE: Money expert shares five tips to cut cost of socialising over Christmas and New Year
READ MORE: How to make your December pay last until January with these seven money-saving tips
Why credit card fraud spikes over Christmas
Increased online shopping
Ben explained: “More people are shopping online, and while convenient, it also means consumers are at risk of falling victim to fake websites, phishing scams, and payment fraud. Two-thirds (62%) of UK consumers plan to do most of their shopping online this year, up from 55 per cent in 2023.”
Gift card scams
Ben said: "Fraudsters frequently target vulnerable people with scam gift card schemes. In these scams, criminals will impersonate a retailer or a family member to trick people into using their debit/credit cards to purchase gift cards, which they then steal the codes for.”
Card-not-present transactions
Ben explained: “Christmas sees a surge in ‘card-not-present’ transactions, where shoppers buy items online or over the phone. These types of payments are riskier because the retailer cannot physically check the card or verify the person making the purchase, which makes it easier for fraudsters to use stolen credit card details.”
Shoppers feel rushed
Ben said: “Fraudsters know people are in a rush during the festive period, and they often take advantage of distractions or urgency. Many victims don’t realise they’ve been targeted until after the damage is done.”
Five ways to protect your Christmas credit card payments
Use credit cards for larger purchases (over £100)
Ben explained: "While fraud can increase during the festive season, credit cards still offer a level of purchase protection that debit cards often don't. Under Section 75 of the Consumer Credit Act, purchases over £100 are protected, meaning your credit card provider is equally liable with the retailer if something goes wrong.
“Most credit card companies also provide fraud protection services, meaning that if your card is used fraudulently, you may not be liable for the charges.”
Stick to trusted websites
Ben said: “It’s easy to fall into the trap of buying from unfamiliar websites, but it’s important to read reviews and ratings, and check if a website is legitimate and secure. Look for a secure “HTTPS” connection (you’ll see this in the website’s URL), and check for signs of a secure checkout.”
Monitor your statements
Ben explained: “Keep an eye on your credit card statements during the festive season. Fraudsters often make small purchases at first to test whether they can get away with it. You can receive real-time notifications of any transactions on your account, making it easier to spot any unusual activity. If you see something you don’t recognise, contact your credit card provider immediately.”
Enable two-factor authentication
Ben said: “If your credit card provider offers two-factor authentication, use it. This adds an extra layer of security by requiring you to enter a code sent to your phone or email before completing an online transaction.”
Use secure payment methods
Ben explained: “Use secure payment services like Apple Pay when making online purchases. These services often offer additional security features, such as encryption and fraud protection, which can help protect your credit card details from being stolen.”
What to do if you are a victim of credit card fraud
Despite your best efforts, there’s always a chance that fraud could happen. If you suspect that your credit card details have been compromised, it’s important to act quickly.
Ben advises: “Most credit card providers will cancel your current card and issue you a new one, and they may also be able to reverse unauthorised transactions. It’s also a good idea to report the fraud to Action Fraud, the UK’s national fraud and cybercrime reporting centre.
“Try not to panic. There are systems in place to help you recover your money and protect your account.”
People in Scotland who believe they have been the victim of fraud should report it to Police Scotland on 101.
