Bruce Helmer and Peg Webb As Black Friday and Cyber Monday approach, consumers and investors both need to remain extra vigilant. Between January and May 2024, cybercrime losses surged to roughly $1.6 billion, according to the FBI’s Internet Crime Complaint Center. The Federal Trade Commission also noted that cyber fraud losses exceeded $10 billion last year, marking a significant jump in scams and fraudulent activity. With cybercriminals employing increasingly sophisticated methods to dupe you out of your money, here are five cybersecurity threats and protective measures you should be aware of this holiday season. 1. Phishing attacks Phishing, by which scammers co-opt trusted entities to steal personal data, remains one of the most common threats during the holidays, and especially during Black Friday when your guard may be down. Shoppers receive fraudulent emails that appear to be from reputable retailers, offering deals that direct them to fake websites where their personal information can be stolen. To protect against phishing, you should carefully check URLs for authenticity, avoid clicking any links from unsolicited emails, and ensure you are doing business only on secure, https-encrypted websites. 2. Fake apps and websites falsely promote “too good to be true” offers To attract online shoppers they can scam, cybercriminals often create fake websites or mobile apps mimicking popular retailers. Often these sites are indistinguishable from their true counterparts, except for small differences in their URLs. (Phone numbers can be phony, too.) Once users enter their credit card information into these sites, they steal their financial data. You should only download apps from official stores like the Apple App Store or Google Play, and verify websites by carefully examining domain names. If an offer looks too good to be true, it probably is. 3. Social media scams mask nefarious intentions Social media is a popular platform for holiday promotions, but it is also a popular tool for scammers who post fake ads to try to capture your personal and financial information. Fraudulent ads often direct users to phishing sites, while others may lead you to purchase counterfeit goods. Be cautious when clicking on ads and avoid purchasing directly from unverified social media links. 4. Investment scams targeting crypto and “get-rich-quick” schemes Holiday shopping season is also a time when fraudulent investment offers rise. These digital ruses often claim high returns with minimal risk, especially in cryptocurrency. While crypto scams target people of all age groups and income levels, younger adults who engage primarily through social platforms are especially at risk. Given that investment scams accounted for over $4.6 billion in losses last year, according to the Federal Trade Commission, you should be very skeptical about unsolicited investment opportunities, and especially any that try to put time pressure on you to make a decision. Never share any financial information without thoroughly researching the offer’s legitimacy (which is why scammers don’t want to give you time to decide). 5. Malware and ransomware fraudsters are aiming at schools and mid-sized businesses Cybercriminals often deploy malware that infects devices to steal passwords, credit card information, or even lock files until a ransom is paid. The holiday season, when people are generally more trusting, is ripe for these exploits. Readers may recall the highly disruptive 2023 ransomware attack on Minneapolis Public Schools that put students’ personal information at risk. Protect against malware by installing reputable antivirus software, keeping devices updated and avoiding suspicious downloads. The best offense is a good defense Regularly monitor your bank statements and set up alerts for transactions, as catching fraudulent charges early can help limit damage. To shop smart, take advantage of holiday season credit card perks that include fraud protection and return guarantees, which add another layer of protection against cybercriminals. In addition, the FTC and FBI emphasize taking a few proactive steps to safeguard personal information. For added security, enable two-factor authentication, use unique, strong passwords, and monitor financial accounts regularly for suspicious activity. If you suspect fraudulent activity, you can report it to the FTC and the FBI’s IC3 center to help combat cybercrime. Taking these few extra precautionary steps can protect you and your finances. With scams on the rise, awareness and a little vigilance go a long way in keeping the season secure.Related Articles Business | Your Money: Starting the tough conversations with your kids Business | Your Money: Charitable giving helps in at least two ways Business | Your Money: A balanced approach to end-of-life planning Business | Your Money: Inflation fears are delaying retirements, survey says Business | Your Money: Financial planning for special needs families The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. Bruce Helmer and Peg Webb are financial advisers at Wealth Enhancement Group and co-hosts of “Your Money” on WCCO 830 AM on Sunday mornings. Email Bruce and Peg at [email protected]. Securities offered through LPL Financial, member FINRA/SIPC. Advisory services offered through Wealth Enhancement Advisory Services, LLC, a registered investment advisor. Wealth Enhancement Group and Wealth Enhancement Advisory Services are separate entities from LPL Financial.