The holiday season is an exciting time of shopping, travel, and celebrations but it’s also a peak period for fraud. Cybercriminals, scammers, and identity thieves know that people are busy and more likely to make quick decisions, making this the perfect opportunity for them. From fake online stores to phishing emails, the risks are real—but you can protect yourself with awareness and smart practices.
Here’s a deep dive into why fraud increases at this time of year, and practical ways to stay safe.
Why Fraud Increases During the Holidays
Shopping Volume Goes Up
More purchases mean more opportunities for fraud. People often explore new stores, make impulse buys, or skip steps in verifying transactions. Every additional online or in-store purchase is another chance for a scammer to get a foothold.
Distraction and Holiday Rush
The excitement and stress of the season make people act faster and think less. Scammers exploit this with urgent messages: “Act now!” emails, fake limited-time deals, or deceptive shipping alerts.
Overloaded Customer Service
Financial institutions and retailers are handling more orders and inquiries than usual, which can delay fraud detection and resolution. Fraudsters take advantage of these delays to benefit before their activity is noticed.
How to Protect Yourself from Holiday Fraud
1. Shop Safely Online
Online shopping is convenient, but it can also put you at risk and expose your information. Fraudsters may create fake websites or hijack online ads to steal credit card info, login credentials, or even your identity.
How to stay safe:
- Use trusted retailers: Stick to well-known brands or stores you’ve used before. If you’re exploring new websites, check reviews, ratings, and verify their legitimacy through sites like the Better Business Bureau.
- Look for secure connections: Always check for “https://” and a padlock icon in your browser. This ensures the site encrypts your payment information.
- Avoid public Wi-Fi for purchases: Public networks are often unsecured, making it easy for hackers to intercept your data. Use your home network or a personal hotspot.
- Enable transaction alerts: Many financial institutions allow you to set real-time transaction alerts. You’ll know immediately if an unauthorized charge
occurs.
2. Recognize and Avoid Phishing Scams
Phishing is one of the most common holiday scams. These scams often appear as urgent messages from financial institutions, online stores, or delivery services.
How to stay safe:
- Verify the sender: If an email or text asks for sensitive information, don’t respond. Instead, go directly to the company’s website or call customer service to confirm.
- Watch for “too-good-to-be-true” offers: Fraudsters lure victims with fake promotions or discounts. If a deal seems unrealistic, it probably is.
- Ignore urgent warnings: Messages that pressure you to act immediately are often scams. Take time to verify before clicking any links or providing information.
- Check email addresses carefully: Scammers often use addresses that mimic legitimate companies but include subtle typos.
- Never sharing personal info via email or text: Financial institutions and legitimate retailers will never ask for passwords or full Social Security numbers this way.
3. Protect Your Payment Methods
During the holidays, credit and debit card fraud increases significantly. Hackers target cards because they can quickly make unauthorized purchases.
How to stay safe:
- Use credit cards instead of debit cards: Credit cards often offer zero-liability protection for fraud, giving you extra security.
- Enable multi-factor authentication (MFA): Many banking apps offer MFA, requiring a code in addition to your password. This adds a layer of protection, making it harder for fraudsters to misuse your payment information.
- Monitor accounts daily: Check your account activity and credit card statements frequently for unusual transactions. The faster you catch fraud, the easier it is to resolve.
- Consider digital wallets: Services like Apple Pay™ or Google Wallet™ mask your payment info, reducing the chance of your card number being stolen.
4. Guard Your Personal Information
Identity theft is a growing concern, and the holidays can make you more vulnerable. Fraudsters can use discarded receipts, shipping labels, or public posts on social media to steal your identity.
How to stay safe:
- Shred sensitive documents: Old receipts, financial account statements, or shipping invoices can contain information criminals can use.
- Limit social media oversharing: Avoid posting travel plans, expensive purchases, or personal details that signal opportunities for theft.
- Use strong, unique passwords: Avoid using the same password across multiple sites and consider a password manager to keep them secure.
- >Freeze your credit if needed: If you’re concerned about identity theft, a credit freeze prevents new accounts from being opened in your name.
5. Trust Your Instincts
Many scams succeed because people act impulsively or feel pressured. Being cautious and thoughtful can prevent costly mistakes.
How to stay safe:
- Pause before clicking or buying: If something feels suspicious, take a step back. Verify through trusted sources before acting.
- Educate yourself on common scams: Familiarity with the latest fraud trends (like fake delivery notifications or holiday-themed phishing emails) makes it easier to spot them.
- Consult your financial institution: If you’re ever unsure if there’s fraud on your account, want to talk through a concern, or just verify a request, we’re here. We can advise on suspicious activity and provide tools to protect your accounts.
Final Thoughts
Staying safe from fraud during the holidays doesn’t require major changes, just a little extra care combined with smart habits. By applying credit safety practices, being phishing-aware, protecting your identity, and trusting your instincts, you can significantly reduce your risk.
This information is not intended as financial, tax or legal advise. Consult a qualified financial and/or tax advisor. The content provided in this blog consists of the opinions and ideas of the author alone and should be used for informational purposes only. Mission Fed Credit Union disclaims any liability for decisions you make based on the information provided. References to any specific commercial products, processes, or services, or the use of any trade, firm, or corporation name in this article by Mission Fed Credit Union is for the information and convenience of its readers and does not constitute endorsement, control or warranty by Mission Fed Credit Union.
