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Allstate Alerts Shoppers About Rising Identity Scams This Holiday Season

As the holiday shopping season approaches, many consumers gear up for their festive purchases. However, with the excitement comes a serious warning from Allstate regarding a significant spike in identity theft cases. Recent reports indicate that October marks the onset of a peak season for fraudulent activities, catching many shoppers off guard with tactics designed to exploit their urgency and distraction.

A Surge in Fraudulent Applications

In October 2024, Allstate monitored a staggering increase in fraudulent credit card applications, loans, and new account setups that amounted to over $9 million in potential losses. This alarming trend correlates with the onset of pre-Black Friday shopping, a time when consumers are especially eager to grab deals and discounts. Fraudulent applications accounted for nearly 70% of identity theft incidents reported, with new account scams inflicting the most severe financial damage, estimated at more than $7.3 million.

Caroline Slane, vice president of business operations at Allstate Identity Protection, emphasizes that scammers are fully aware of the frantic pace at which shoppers operate during this busy period. “Scammers know shoppers are racing the clock and clicking fast,” Slane noted. While Allstate provides support through its identity restoration specialists, the best defense is for consumers to adopt a careful and skeptical approach to their shopping habits.

Types of Scams to Watch For

Allstate highlights several scams shoppers should watch out for this holiday season, including:

• - Fake Online Retail Stores: Scammers leverage AI technology to create credible-looking websites mirroring legitimate retailers, offering exaggerated discounts and stolen branding.
• - TikTok Shop Scams: These scams involve counterfeit products, phishing messages, and accounts impersonating popular influencers, which often mislead consumers.
• - Phishing Attacks: Fraudsters masquerade as reputable retailers or delivery services to extract login or payment details from unsuspecting shoppers.
• - Package Delivery Scams: These scams utilize fake notifications that entice shoppers to click malicious links or provide personal information under false pretenses.

Shopping Safely Online

For consumers looking to navigate their holiday shopping securely, Allstate has released a helpful cheat sheet titled Shop Smart and Avoid Scams. Key recommendations include using credit cards for transactions, closely tracking purchases, and promptly deleting any suspicious communications. Slane reiterates, “No deal is worth the risk,” encouraging shoppers to remain vigilant during their online shopping ventures.

Risks of Third-Party Platforms

In addition to direct scams, there are inherent risks associated with purchasing from third-party sellers and secondhand marketplaces, particularly during the holiday frenzy. These unregulated platforms often lack verified sellers, robust return policies, and strong payment security, making them fertile ground for fraud.

Allstate stresses that before engaging with a website or seller, consumers should evaluate the credibility of the platform to ensure a safe shopping experience.

Tools for Protection

Allstate Identity Protection offers several tools tailored to assist consumers in avoiding identity theft. One of its standout offerings is the Allstate Digital Footprint service, which monitors digital exposure and alerts users to security threats. With plans starting at just $3 per month for individuals and $6 for families, Allstate provides both proactive measures and extensive support for recovery should a breach occur.

Conclusion

As the holiday season draws closer, the importance of awareness and preparation cannot be overstated. The rise in identity scams presents a notable risk to shoppers, but with the right precautions, they can safeguard their finances and enjoy a more secure shopping experience this festive season. For more information on identity protection, visit Allstate Identity Protection.