November #2 - BlackCloak Cyber Alert: Massive Surge in Black Friday Scams

Ahead of Black Friday and Cyber Monday, the BlackCloak Team is issuing an alert warning members of a significant surge in fraudulent activity and a unique scam conducted through Amazon.

According to recent analysis, security researchers are tracking a 250% increase in the number of fake online shops created in the days and weeks leading up to Black Friday. Criminals are using Generative AI to create fake stores that are nearly identical to legitimate stores, making them harder to spot.

These sites lure shoppers with "too good to be true" discounts, leading them to enter credit card numbers and personal information on counterfeit sites.

Our team responded to an unconventional attack in which a scammer created a fraudulent “pop-up” advertisement that appeared within Amazon’s legitimate platform and presented itself to verified, logged-in users (pictured below). By nesting their fraudulent ad within the platform, the scammer tricked the individual into believing it was legitimate. When the individual called the number, the scammer pretended to be from Amazon’s support department and claimed a major, fraudulent purchase (in this case, a $1,200 iPad) had been made on behalf of the individual via a secret "Amazon business account," under the victim's name. The scammer, impersonating Amazon Support , then offered to "help reverse the charge." 

To process this, the criminals demanded highly sensitive data, including bank account balances and the last four digits of the victim's social security number (SSN). To prevent the victim from hanging up, they escalated the pressure by spoofing the local police department and calling the victim, falsely claiming there was a warrant out for their arrest. After our team advised the individual to hang up, the scammers called repeatedly under the spoofed police department number in order to try and convince the individual they were in trouble. Thankfully, the incident was fully resolved.

While our team was able to assist, this scam was highly complex and highly convincing, and we want to ensure our member base is made aware of this type of attack.

• Just because you're logged in, that doesn't mean it's safe: As seen in the Amazon scam detailed above, being logged into a platform does not always mean all the content presented is legitimate. Especially on e-commerce websites like Amazon and Ebay, which allow users to create and share their own content and ads, scammers are able to disguise themselves as legitimate stores and abuse our inherent trust in verified platforms. 

• Verify, don’t trust: Don’t rely on visual cues alone, like a familiar website layout. Confirm the URL by typing the address manually and navigating directly to the website. Make sure the URL starts with the “https://” and shows a padlock icon. Hover over URLs with your cursor to verify the website you think you’re navigating to is correct, and isn’t actually a scam site.

• Watch for misspellings: Fake sites use tiny typos (e.g., amazzon.com or ebau.com) 

• Use “virtual cards”: Most major banks and card providers now supply virtual card numbers for shopping online that are different from your primary/main card number. This allows you to cancel your virtual card with ease if the number is leaked without having to cancel and reissue your primary card. Some providers, like privacy.com, also let you set spend limits, so even if a bad guy gets your virtual card number, they can’t spend more than the amount you set. See our guide on virtual cards here: https://kb.blackcloak.io/docs/using-virtual-payment-cards

• Be wary of "too good to be true" deals: The easiest way to spot a fake site is the unbelievable discount. If an item is 90% off when it's only 20% off everywhere else, assume it's a scam intended to steal your card data.

• Practice the basics: Utilize MFA and strong password hygiene on all critical accounts. See our guides on establishing MFA here: https://kb.blackcloak.io/docs/dual-factor

• Contact the BlackCloak Team: If you have any questions or concerns, or need help verifying that something is legitimate, contact the BlackCloak Team at ask@blackcloak.io or via the Concierge tab in the mobile app.