Holiday shopping scams cost Montana customers more than $700,000.Here’s what to watch for [David Murray](/staff/4406805002/david-murray/) There was a time when “Black Friday” was a real event.The day after Thanksgiving was given the moniker because retailers could reasonably expect to turn a profit on annual sales when big bargains drew a holiday crowd of shoppers.Today Black Friday seems to last for the entire month of November, and so much shopping is done online that the days of customers lining up on Thanksgiving night to crowd in for “doorbuster” bargains are long gone.The online surge has changed shopping so much that the Monday after Thanksgiving, now known as “Cyber Monday,” is expected to rake in more than $12 billion in retail sales this year.That rise in internet commerce is convenient and makes it easier to compare prices, but comes with risks, and the statistics show Montana customers are not immune.The FBI, the Federal Trade Commission (FTC), and the Montana Office of Consumer Protection (OCP) are warning that internet fraud of all types is expanding rapidly, and the holiday shopping season offers multiple opportunities for scammers “Black Friday and Cyber Monday scams are expected to reach unprecedented levels this season,” warns the [internet security and reverse identity search company Social Catfish](https://socialcatfish.com/).“Montana consumers should be on high alert as the state lost $22 million with 1,170 victims to online scams last year.
Considering a record $221.8 billion in online shopping sales are projected this holiday season, consumers are likely to lose even more money to scams unless they learn how to avoid them.” In October, Social Catfish released its [State of Internet Scams 2023](https://protect-us.mimecast.com/s/VN82CjRgzqSRnjAANs7XVf1?domain=socialcatfish.com/) report on internet fraud across the U.S.The findings are based upon data compiled from the FBI Internet Crime Complaint Center and the FTC.“A record $10.3 billion was lost by Americans to online scams in 2022, up from $6.9 billion in 2021, and up 277% from $2.7 billion five years ago, according to the FBI Internet Crime Complaint Center,” the report states.“The average loss per victim jumped from $8,142 per incident in 2021 to $12,859 last year.” In Montana, 1,170 victims lost a total of $22.3 million, with each victim being scammed for an average loss of $19,019.
The figures are corroborated by the Montana Office of Consumer Protection (OCP).“In 2022, OCP recovered $712,884 for Montanans who were victimized by scammers, and prevented consumers who called inquiring about whether they were being scammed from losing $168,020,” said Montana Attorney General Austin Knudsen in a Justice Department news release.“Additionally, a total potential loss of $2,806,969 was reported to OCP by Montanans who knew they were being targeted by a scammer but did not pay them.” “I urge everyone to please learn how to spot a scam and think twice before you provide a stranger with money or personal information,” Knudson added.“ [Contact our office immediately if you think you’ve been a victim](mailto:[email protected]).
We are here to help.” Montanans can report any phone, email, or mail scams to the Montana Department of Justice’s Office of Consumer Protection at [[email protected]](mailto:[email protected]), or 406-444-4500 (toll-free: 800-481-6896), or online at [dojmt.gov/consumer](https://lnks.gd/l/eyJhbGciOiJIUzI1NiJ9.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.NyH-7aB0-akD_Nx9sZ9r0SCsS_qT3mVNaHjjksAVJFw/s/1527442806/br/153828483717-l).Social Catfish’s report highlights three online shopping scams to avoid this holiday season: fake stores, fake gift cards, and fake shipping notifications.
With fake stores, scammers advertise incredible deals on social media and if you click the link, it takes you to a look-a-like website of a major brand.Any gifts purchased will never arrive.
To dodge the fake store scam triple-check the spelling of the URL.Fake sites are often one letter off.Gift cards are a great holiday gift and easy to send.In recent years gift card resale sites have popped up on the internet offering customers discounts on unwanted or unused gift cards.Many of these sites are legitimate, but scammers are on them as well selling gift cards that arrive with no balance.
The best way to avoid this is to buy your gift cards from reputable brick-and-mortar stores, or if you chose to use a discount website to perform a reverse search on the seller’s name to confirm their identity.The volume of packages being delivered during the holiday season has become so immense that scammers have begun emailing or texting a delivery notification with a “tracking link.” This is a phishing link used for identity theft.To avoid it, only track packages on the official UPS, USPS, or FedEx website.Internet fraud during the rest of the year Of course, internet fraud isn’t limited to holiday shopping.One of the key findings of Social Catfish’s report is the difficulty of recovering funds stolen on the internet.Last year the FBI’s Internet Crime Recovery Asset Team was only able to recover 4.2% of the $10.3 billion lost to internet scammers in 2022.The primary reason is that most scams originate from outside of the U.S., where U.S.
law enforcement has no jurisdiction.“(The FBI) recovered $433 million of the $590 million stolen domestically,” the report states.“The rest of the $10.3 billion was stolen by scammers living internationally.The majority of online scams emanate from Nigeria where scamming is a full-blown business sector in a country where many citizens lack financial opportunity.” Recovery of funds is also difficult for banks and governments.“Online scammers can operate from anywhere in the world, making it difficult to determine their actual location and hold them accountable,” the Social Catfish report continues.“They often hide behind anonymous identities or use techniques like IP spoofing to obfuscate their true origins.Scammers are also adept at swiftly moving funds through various accounts and financial channels, making it difficult to trace and freeze the money before it is withdrawn or transferred to other jurisdictions.” Seniors remain by far the most victimized group overall, losing $3.1 billion in 2022, but teens and children are increasingly being targeted.According to the State of Internet Scams report, social media users 20-years-old and younger lost $210 million in 2022, up from just $8.2 million just five years earlier.
It’s an indication of how sophisticated internet scammers have become.In a poll of 5,500 online scam victims completed earlier this year, Social Catfish found that most online scams happen on Facebook (32%), followed by Google hangouts (16%), WhatsApp (16%), and Instagram (14%).
According to the Montana Office of Consumer Protection the most prevalent types of internet fraud in Montana are tech support, romance, law enforcement and imposter scams.Nationally, the largest category of internet fraud is investment scams.Both the FTC and Better Business Bureau say the speed and convenience of the internet, the rise of online payment platforms and apps, and the spread of financial misinformation have all contributed to the loss of $3.31 billion to online investment fraud in 2022.The crypto currency market is especially prone to internet fraud.Scammers create fraudulent Initial Coin Offerings (ICOs), or fake crypto exchanges to steal users’ funds.To avoid fake platforms, only use reputable and well-known exchanges and wallets.
Verify the website’s URL and look for security measures like 2FA and cold storage for funds.Romance scams are also a big source of concern.According to the State of Internet Scams report, the FBI has recorded $2.3 billion in loses from confidence/romance scams since 2020, but the actual figure is probably much higher.In April 2023, Social Catfish conducted a poll of 5,500 romance scam victims and found that 81% never filed a report with the FBI or the FTC because they were too ashamed to come forward.“Scam victims often experience feelings of shame, embarrassment, and self-blame,” the report notes.“They may blame themselves for falling for the scam, feeling foolish or gullible.Victims might be hesitant to share their experience with others due to fear of judgment or stigmatization, which can further isolate them and hinder their emotional recovery.” “The experience of being deceived, manipulated, and financially harmed can have a profound impact on a person’s mental well-being,” it continues.“Victims may develop symptoms of anxiety, depression, post-traumatic stress disorder (PTSD), or other psychological conditions as a result of the scam.” How to protect yourself The State of Internet Scams report and the Montana Office of Consumer Protection recommend general tips to avoid online scams in the coming year: – Always verify links, websites, and email addresses, and be wary of a false sense of urgency.
– Do not send gift cards, prepaid debit cards, or cryptocurrency to someone you do not know.Even if you think it’s someone you know, follow up to make sure before you wire any money.- Use a password manager to create many passwords so if one has been compromised the rest of your accounts are protected.- Five big red flags to spot a scam include poor grammar, refusing to video chat, being in the military, working overseas, asking to be paid in gift cards or cryptocurrency.- Be wary of deals that are too good to be true and advertised or linked through social media.If you have fallen victim to online scam, it’s important to take immediate action to minimize the impact and report the incident to the appropriate authorities.Here are some authorities you can contact: – Start by contacting the Montana Office of Consumer Protection at [[email protected]](mailto:[email protected]), or 406-444-4500 (toll-free: 800-481-6896), or online at [dojmt.gov/consumer](http://protect-us.mimecast.com/s/cOcyC5yw29h6ZqxlVIzb8ES?domain=dojmt.gov).They can document the incident, provide you with an official report or case number, and offer guidance on further steps to take.
– You can file a complaint with the FTC through their official website ( [www.ftc.gov](http://www.ftc.gov/)) or by calling their toll-free hotline.The Federal Trade Commission is a federal government agency that handles consumer complaints and helps investigate and take action against fraudulent or deceptive practices.- The Internet Crime Complaint Center is a partnership between the Federal Bureau of Investigation (FBI) and the National White Collar Crime Center (NW3C).It accepts and analyzes complaints related to [internet crimes and scams](https://socialcatfish.com/scamfish/state-of-internet-scams-2022/).You can file a complaint through their website ( [www.ic3.gov](http://www.ic3.gov/)).- Contact your financial institution.
If the scam involved financial transactions, such as unauthorized charges or fraudulent bank transfers, contact your bank, credit card company, or any other financial institution involved.They can guide you on how to report the fraud, dispute charges, and potentially recover lost funds..
