Authors: Gosha Olszewski Neal Gardner
The Federal Bureau of Investigation (FBI) received more than 880,000 cybercrime complaints from the public in 2023, marking a 10% increase from 2022. The total losses surged to $12.5 billion, compared to $10.3 billion the previous year. California, Texas and Florida reported the highest number of victims.1
In 2023, the Federal Trade Commission's (FTC's) Consumer Sentinel Network received over 5.4 million reports, with fraud making up 48% and identity theft 19%. Credit card fraud was the most common form of identity theft at 40.2%, followed by miscellaneous types, including online shopping, payment account, email and social media fraud, which accounted for 25.1%.2
Cybercriminals are constantly advancing their strategies to target online shoppers, making it crucial to know the risks and how to protect yourself while shopping.
Recently, a complaint was filed against National Public Data (NPD), a background check company, alleging a data breach in April 2024.3 The breach exposed sensitive information, including full names, addresses from the past 30 years, Social Security numbers and family details. The complaint also claims that NPD collected this data from non-public sources without consent and failed to protect it from unauthorized access, violating its legal duty.
This incident and many similar ones emphasize the importance of taking proactive steps to protect your personal information and prevent unauthorized access, especially when engaging in online transactions. Here are seven tips to enhance your security.
1. Shop from trusted websites
Always ensure you're shopping from a reputable website or retailer. Look for sites or brands with a strong online presence. A quick way to check the authenticity of a site is by checking the URL — it should begin with "https:," which signifies a secure connection. If you're unfamiliar with a store, check other customer reviews.
2. Use strong, unique passwords
A weak or easy-to-guess password makes it easier for cybercriminals to hack into your online accounts. Combine letters, numbers and symbols to create strong passwords.
Enabling two-factor authentication can keep your account more secure. It asks you to confirm your identity using a secondary method, like a text message, email or authentication app.
3. Avoid making transactions using public Wi-Fi
Networks at coffee shops, stores or airports are considered highly unsafe for sensitive activities. Although security has improved with encryption, public networks are still inherently more vulnerable than secure home or office networks. Cybercriminals can easily exploit these connections, intercepting personal and financial details.
If you must use a public network for payments, ensure the website has proper security indicators, like the lock symbol or "https" in the URL.
4. Beware of phishing scams
Phishing scams are the most common tactics cybercriminals use.. These scams include fake emails, texts or websites that look like they're from legitimate retailers. They often contain malicious links or ask for your personal and banking information. Be cautious of any suspicious emails, messages and links.
Phishing scams often copy legitimate retailers. Always verify the sender's email address, check for spelling errors and don't click suspicious links. Hover over links to preview the URL and ensure it matches the official website. For texts and emails, verify the authenticity by contacting the company directly through their official channels.
5. Use secure payment methods
Using credit cards or reputable third-party services can keep your account secure. These payment options provide an additional layer of protection against fraud compared to debit cards. Many credit cards also provide zero-liability protection for unauthorized charges, ensuring you're not held responsible for fraudulent transactions.
Also, some credit card companies offer virtual credit cards that provide temporary card numbers linked to your account. These virtual numbers help protect your actual card information from hackers.
6. Monitor your bank statements regularly
Checking your bank statements and credit card activity regularly is imperative. Review your transactions to identify any unusual or unauthorized charges. Various banks and credit card companies provide real-time transaction alerts, which can help you find fraudulent activity early.
7. Know how to secure your identity after a data breach
Following a data breach, it's crucial to secure your identity to prevent further damage. Taking immediate action to address the breach and protect the compromised information can help minimize risks. Below are the key steps you should take to safeguard your identity and prevent fraud:
- Report the identity theft: Contact the FTC for a personalized recovery plan and obtain an identity theft affidavit.
- File a police report: If necessary, use the affidavit to file a police report. Consider contacting local law enforcement, as reporting procedures differ by jurisdiction.
- Notify your card issuer: Inform your card issuer so they can cancel the compromised card, investigate fraud and issue a new card.
- Place a fraud alert: Add a fraud alert to your credit file to ensure lenders verify your identity before opening new accounts.
- Change passwords: Immediately update all your passwords to secure accounts from further fraudulent activities.
- Monitor your credit report: Check your credit report regularly for unauthorized activity.
- Lock your credit: Freeze your credit with major bureaus to stop any new accounts from being opened in your name or consider using credit locking services for faster protection.
- Stay proactive: Staying informed can help safeguard your identity and minimize future fraud risks.
As online shopping grows, so do the risks associated with cyber fraud. To reduce exposure to cybercriminals, use strong passwords, shop on secure websites and avoid suspicious websites and retailers.
How Gallagher can help
Protecting your identity and financial information online is more important than ever. Gallagher has solutions tailored to safeguard you from cybercriminals, from cyber insurance to identity theft protection. Contact your Gallagher personal insurance advisor to explore the coverage options that best fit your needs.
