(Photo | Pexels)
Shoppers will spend billions over the holiday season. Whether shopping in-person or online, most of us will opt for the convenience of credit cards, debit cards or a host of electronic payment options at our disposal, including mobile payments.
Indicators are pointing to a record season this year, with holiday retail sales in November and December expected to reach approximately $730 billion, according to The National Retail Federation’s recently released annual holiday sales forecast. As much as $166 billion of that will come from online or other non-store sales, the NRF predicts.
That is a lot of transactions, and only a small fraction of those purchases will be made in cash. Despite that, almost all of these purchases will be safely completed. Yet, each electronic transaction carries some risk, however small, including identity theft, credit card fraud and even non-delivery of goods after an online purchase.
This is the reality of living in the digital age.
Credit unions have invested millions of dollars in providing increasingly secure payment methods that provide seamless transactions to all our members. From utilizing chip technology on credit and debit cards to embracing payment forms through mobile phones, credit unions have made many advancements that have helped make shopping safer.
But that is not all that is to be done. Shoppers themselves can take proactive measures to protect themselves this holiday season.
Some steps are common sense. For instance, when using a credit or debit card, make sure to return the card to where it is normally stored — wallet or otherwise — once the transaction is completed. In a rush, especially in a busy store around the holiday season, it can be easy to misplace a card. And while we often think of credit card fraud as a high-tech crime, it can also be a result of a lost card falling into the wrong hands.
Shoppers should also avoid unfamiliar online retailers. That is not to say to avoid small businesses. But rather, be wary of unfamiliar online retailers offering deals that seem a bit too good to be true. Even during a time when “Cyber Monday” deals flood the Internet, less reputable websites offering over-the-top deals should set off alarms. Often these sites are created as front to steal credit card information.
Other precautions are a bit less obvious. Implementing current technology can help. Mobile payment services such as Apple Pay and Android Pay allow shoppers to connect their mobile phones to credit and debit cards. Aside from being convenient, these payment services tend to be especially safe because they use a process called “tokenization,” which transmits payment information via unique identification symbols rather than conventional, sensitive data to execute a transaction. More and more credit unions and banks participate in this technology, and retailers that accept these payments are increasingly common.
In addition, utilize the software that credit unions and banks have designed to help keep accounts safe. This includes signing up for instant notifications and security alerts through your credit union or banking app, as well as SMS text alerts.
If you do spot unusual activity — either by being diligent with your statements or through an alert — the first step must be to reach out to your financial institution. The last line of defense is a quick response, and it could be the difference between an inconvenience or something far more damaging.
Chances are that you will be able to shop safely without any issue. But some diligence now can ensure that you can focus on what is important: Sharing a wonderful holiday season with those you love.
