Nearly half of shoppers ‘would ignore scam red flags in hope of a big discount’

Christmas shoppers are being warned to watch out for scams as research indicates nearly half (46%) would ignore red flags if they appeared to be getting a discount of at least half price.

A similar proportion (49%) would be prepared to overlook warning signs if they needed something to arrive before a holiday, according to the survey carried out for Mastercard.

Fraudsters will try to make use of people feeling under pressure, excited about a bargain or distracted by needing to tick multiple purchases of their shopping lists in the run-up to Christmas.

During the holiday season, two-thirds (66%) of shoppers buy from unfamiliar websites, the survey indicated.

While around a third (34%) of people said they are more cautious during the holidays, 8% said they are less cautious.

A fifth (19%) of people said they do little to no research before buying from an unknown or new website.

The survey also found that many shoppers have had poor experiences with purchases previously, with 17% having bought items that never arrived, 13% saying they have received counterfeit products, 9% saying they had been charged incorrectly and 8% saying their payment information had been compromised.

Some people also said they had abandoned purchases after spotting red flags on websites, such as prices seeming “too good to be true”, poor spelling and grammar, websites asking for unnecessary information, or looking unprofessional, or a lack of customer reviews and ratings.

Many people said they would also avoid buying from a website during the holiday season if it had no secure payment indicators (54%) or very few payment options (30%), according to the survey of more than 1,000 people across the UK carried out by The Harris Poll for Mastercard in September.

Simon Forbes, division president, UK & Ireland at Mastercard, said the firm is continually analysing “risk events” and uses generative AI (artificial intelligence) to detect compromised cards faster, as well as stopping fraud by scanning transactions in “real time”.

He said: “Our message to people this festive season is to watch out for rogue traders and remember that if something looks too good to be true, it usually is.”

Here are some suggestions from Mastercard to help shoppers protect themselves from fraud:

1. Scan with care.

Be mindful that some QR codes and ads with enticing “low” prices may potentially be wrapped up in trouble, such as malware or fake websites, where fraudsters hope people will unwittingly enter their card information.

2. Update before you celebrate.

Make sure your tech is up to date with the latest software updates to protect against evolving threats.

3. Check twice for fake delivery alerts.

Criminals will often send out fake messages about deliveries, with many people expecting parcels in the run-up to Christmas. When in doubt, contact the company using official channels.

4. Spread generosity with confidence.

Research charities before donating to ensure your money goes to a reputable cause.

5. Watch out for fake captchas.

Captchas are authentication measures used to detect whether a user is human, such as by selecting certain images. But Mastercard said people should shut down ones asking for downloads or personal information.