Don’t let fraud steal your Christmas cheer

The weeks leading up to Christmas are a golden opportunity for in-store retailers. Footfall increases, shelves are stocked with festive favourites and tills ring with seasonal sales. Whether you’re selling food, fashion, electronics or homeware, the festive rush brings both opportunity and risk.

While shoppers are busy preparing for celebrations, fraudsters are equally active during this ‘Golden Quarter’ of the year, looking for ways to exploit the rush and distract staff.  The combination of high demand, busy staff and increased promotional activity creates the perfect storm for opportunistic criminals.

Another seasonal scam involves emotional manipulation and phone fraud. Fraudsters may call your store claiming to need a large order of goods at short notice, perhaps spinning a story about a charity event or a family gathering to appeal to your goodwill. This is especially common in food retail with requests for meat, alcohol or party food.

What to watch for

While toy shops and electronics stores are frequent targets, retailers of all types face a spike in fraud attempts in December. Grocery retailers, butchers and supermarkets see a surge in fraud attempts, but so do fashion and homeware shops.

Fraudsters often claim they’ve been let down by a supplier and need a large order of goods for a party or event. They rely on the seasonal rush and your willingness to help to get what they want.

To protect your store, consider three simple steps:

• First, sense-check the order. Does it make sense that someone would need 20 turkeys, 15 bottles of whiskey, 10 smartphones or eight designer handbags at short notice? If it feels off, it probably is.
• Second, avoid phone payments wherever possible. Encourage customers to pay in-store using chip and PIN, as it’s much harder to scam face-to-face.
• Third, if you must take remote payments, use secure methods like a ‘pay by link’ option. It adds a layer of protection and helps verify the transaction.

Strengthening your setup

There are several ways to strengthen your in-store payments setup. Chip and PIN remains the most secure method for card-present transactions, but additional measures can help – such as reviewing your terminal settings in-store.

Ensure that refund permissions are restricted to trusted staff and that receipts are printed and reviewed for every transaction. If your store uses integrated point-of-sale systems, check that software updates are applied regularly and that fraud detection features are enabled. 

Don’t forget physical security in your shop, too:

• Make sure cash registers are locked when not in use and that cash is stored securely and banked regularly.
• Limit the amount of cash kept on the premises and use drop safes if possible.
• Consider installing CCTV to monitor entrances, exits and till areas, and ensure all security equipment is working properly.
• Be alert to suspicious behaviour, such as groups attempting to distract staff or individuals loitering near tills.
• Counterfeit notes and shoplifting attempts also tend to increase at Christmas, so remind staff to check notes carefully and report anything unusual.

Managing chargebacks and disputes

Chargebacks are another area where preparation pays off. They can be costly and time-consuming, especially if you’re not ready to respond.

Make sure you keep detailed records of transactions, including receipts, customer communications and delivery or collection details. If a dispute arises, having this documentation ready can help you respond quickly and effectively.

Christmas should be a time of celebration, not frustration. By staying vigilant and preparing your team, you can protect your store from fraud and focus on serving your customers.

Stay secure this Christmas

• Use chip and PIN for all in-store transactions
• Restrict refund permissions to trusted staff only
• Keep detailed records to support chargeback disputes
• Review and update terminal software regularly
• Offer DCC only when appropriate and clearly explained
• Train staff to recognise and respond to suspicious behaviour
• Remind staff to stay alert for physical security risks and to report suspicious behaviour immediately