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A new report from Visa sheds light on the show scams targeting consumers and travelers, who have incorporated new twists on old tactics for defrauding victims.
Visa’s “State of Fraud: Fall 2024 Biennial Threat Report” found there has been a resurgence in physical theft in the past six months, with criminals purchasing gift cards or physical products using stolen payment information that can resold, or using the card number for money transfers.
A new style of physical theft, known as “digital pickpocketing,” has also become increasingly common in the past year, according to the report. Fraudsters carry out the theft using a mobile point-of-sale device, which they tap on an unsuspecting consumer’s wallet to initiate a payment, often in crowded places where contact may go unnoticed.
Michael Jabbara, SVP and global head of fraud services at Visa, told FOX Business that, “Consumers need to guard against digital pickpocketing by being aware of their surroundings. Just like old-school pickpockets, criminals they prey on those who are distracted by what’s going on around them, which makes tourists in crowded areas a prime target.”
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Visa released a new report on fraud and new threats to consumers. (Photo by Miguel J. Rodriguez Carrillo/Getty Images / Getty Images)
“People should also consider enabling real-time purchase alerts for their accounts. That way, if they become a victim of digital pickpocketing, they can notify their bank immediately, helping not only themselves but also others who may fall victim to the scammer,” Jabbara added.
| TICKER | Safety | The last one | AmENdmENT | change % |
|---|---|---|---|---|
| V | VISA INC. | 281.73 | -1.49 |
-0.53% |
Fraudsters are also adding one-time password phishing scams as a means of bypassing two-factor authentication protocols meant to prevent unauthorized access to an account. Visa’s report noted that scams have become more convincing in part because of the prevalence of gen artificial intelligence (AI) and using it to conduct victim discovery to include more compelling emails or other communications.
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Cybercriminals are using fake airline websites to scam travelers. (Photo by Annette Riedl/Photo Alliance via Getty Images / Getty Images)
Visa found that threat actors are also looking to take advantage of a busy travel season by exploiting consumers who travel plans. The report noted that a common scam involves fraudulent websites that “spoof” or mimic those of major airlines and seek to lure consumers with lower-fare deals, who make purchases and are then lured into paying for services during flight before the scammer intercepts the victim.
Fraudsters are also impersonating airline officials to send fake cancellation emails that also request the individual’s payment information so a new flight can be booked.
Jabbara said that in addition to being aware of such scams, travelers should also “be careful in crowded areas where distraction tactics are often used to steal items.”
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Travelers should be wary of theft of their belongings as well as impersonation scams by fraudsters posing as airline officials online. (Miguel J. Rodriguez Carrillo/Getty Images/Getty Images)
He also provided some best practices that consumers should follow to protect themselves from scams and fraud, as well as how to respond to theft if it unfortunately does occur.
“First, consumers should set up purchase alerts to monitor their transactions and quickly indicate if something is wrong. Consumers should also set two-factor authentication and protect each code as they are passwords. Consumers should also be up-to-date on the latest scams to help be aware of what fraudsters are taking advantage of,” Jabbara said.
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“If consumers encounter anything suspicious on their report, they should contact their financial institution immediately. After reporting fraud, updating passwords and ensuring two-factor authentication is properly set up are essential steps. If it has occurred theft should also be reported to local law enforcement,” he added.