Black Friday and Cyber Monday may be behind us, but the holiday shopping rush—and the season of fraud—is still in full swing. The holiday season, with its joy and shopping bustle, is also peak time for cybercriminals. With an estimated 157% increase in phishing attacks during the week leading up to Christmas and a 70% rise of all holiday-period cyberattacks attributed to ransomware, staying vigilant is essential. To protect your customers and ensure a smoother, more enjoyable holiday shopping experience, it’s crucial to keep fraud prevention and customer engagement strategies top of mind throughout the season. By understanding emerging threats and taking proactive steps, brands can safeguard their customers and maintain trust during this festive time.
Key holiday fraud trends
Sophisticated phishing and online scams
Phishing remains one of the most prevalent fraud tactics, especially during the holidays when consumers are inundated with emails and messages about deals and deliveries. In 2024, fraudsters are leveraging AI to craft highly personalized emails, voice messages, and chatbots that mimic trusted entities. Delivery scams, where fake notifications trick victims into clicking malicious links, and malvertising, where fraudulent ads redirect users to phishing sites, are also on the rise.
Promotion abuse and data breaches
Promotional campaigns are a holiday staple but also a magnet for fraud. Tactics like sign-up fraud, referral scams, and code exploitation undermine the integrity of these campaigns. Simultaneously, the surge in online activity during the holidays creates opportunities for data breaches, exposing passwords, payment details, and personal information. With 80% of data breaches linked to weak or stolen passwords, the risks of account takeovers (ATO) are significant, as fraudsters use stolen credentials to gain control of customer accounts.
Gift card and charity scams
Gift cards, a popular holiday choice, are frequently targeted by scammers. Fake payment requests from fraudsters posing as employers, friends, or family are a common tactic. Additionally, fake or already-used gift cards are often sold on online marketplaces. Similarly, charity scams exploit the holiday spirit of generosity, setting up fraudulent organizations to solicit donations.
How brands can protect customers
Protecting customers during the holiday season requires a robust combination of tools, education, and proactive measures. Here’s how brands can ensure a secure and seamless experience:
- Leverage advanced tools: Use solutions like Telesign Silent Verify to help prevent account takeovers and breached data monitoring to identify compromised credentials.
- Strengthen security measures: Implement multi-factor authentication (MFA) and encourage strong passwords to minimize vulnerabilities.
- Protect promotions: Utilize verification systems and behavioral analytics to discourage fraud and abuse in discount and referral programs.
- Educate customers: Inform them about phishing, fake shipping notifications, and safe shopping practices.
- Monitor for fraudulent impersonations: Actively search for and shut down fake websites or profiles impersonating your brand.
How consumers can stay safe
Consumers also play a vital role in preventing holiday fraud by practicing vigilance and safe online habits:
- Verify emails, messages, and websites before clicking on links or sharing information.
- Use strong, unique passwords and enable MFA for enhanced security.
- Buy gift cards only from trusted retailers and avoid sharing card details online.
- Research charities and e-commerce sites before making donations or purchases.
Delivering better customer experiences during the holidays
Beyond fraud prevention, brands have a unique opportunity to delight customers and foster loyalty. Thoughtful engagement strategies can make the holiday season smoother and more enjoyable for shoppers.
Engage with AI and omnichannel strategies
Chatbots and AI-powered assistants provide 24/7 support for customer inquiries, from shipping timelines to return policies. Omnichannel strategies create a seamless shopping journey, enabling customers to switch between online and in-store platforms. Features like click-and-collect and consistent messaging enhance convenience and drive conversions.
Personalize and optimize the shopping experience
Dynamic content, tailored recommendations, and exclusive offers keep customers engaged, while mobile-friendly websites with fast loading times and in-app incentives ensure a frictionless experience. Research shows that mobile commerce now accounts for over 60% of online transactions, emphasizing the importance of optimizing for mobile shoppers.
Build trust with real-time updates
Clear communication builds loyalty. Real-time updates on orders, delivery notifications, and transparent pricing reduce frustration. Post-purchase support, including simplified returns and follow-up thank-you emails, reinforces trust and encourages repeat business.
Driving success with seamless tools
By combining tools like Silent Verification and omnichannel communication platforms, brands can secure interactions and enhance engagement. These solutions streamline account verification, reduce cart abandonment, and ensure uncompromising security, creating a holiday season marked by satisfaction and trust.
Stay safe and secure this holiday season
The holiday season should be about joy, not fraud. By understanding these fraud trends, adopting proactive strategies, and delivering exceptional customer experiences, brands and consumers can make the most of the festive season. Here’s to a safe, secure, and joyful holiday for all!
From all of us at Telesign—we wish you a happy, safe, and secure holiday season.
Want to dive deeper into holiday fraud trends? Explore our blog: Holiday fraud trends and how to protect your business.
