The holiday season is in full swing, and our calendars are filling up fast. We soon get caught up in the hustle and bustle of the busiest time of year.
It’s a fun kind of chaos, but it’s also a time of year when financial fraud spikes. Scammers know we’re busy, distracted, and in a generous mood; and they’re quick to take full advantage of it. That’s why it’s so important to stay alert and keep a close eye on your financial transactions and accounts, even as you’re busy spreading holiday cheer.
According to the Federal Trade Commission, consumers lost over $12.5 billion to scams in 2024, which was a 25 percent increase from the prior year. The top three methods of committing fraud were through emails, phone calls and text messages, with consumers losing billions during the holiday season.
With so much going on, it’s easy to lose track of spending, which creates the perfect opening for scammers. Keeping an eye on your accounts — especially this time of year — is one of the simplest and most effective ways to protect yourself. Staying aware and speaking up quickly when something doesn’t look right can make all the difference.
How are scammers so good at what they do? They are experts at creating false urgency and manipulating emotions. Be wary of messages — whether by email, phone call, or text — that pressure you to act immediately or claim your account is compromised. This time of year, especially, be vigilant against fake shipping and package delivery texts, phony refund notifications, counterfeit online stores, and fraudulent advertising links or QR codes that are intended to inject viruses onto your devices. Many fraud attempts use official-looking logos, familiar language, or spoofed phone numbers to appear legitimate. They might ask for personal information, request unusual payments like gift cards, or include links that lead to fake websites.
The AARP Fraud Watch Network notes that gift card scams surge during the holiday season, with criminals either tampering with cards on store racks or pressuring people to “resolve an urgent issue” by buying gift cards and reading the numbers over the phone. Once they have those numbers, the money is gone instantly. If something makes you feel rushed, anxious, or overly excited, pause. That emotional reaction is often the first red flag.
Financial institutions strengthen the fight against fraud by combining sophisticated detection technologies with the vigilance of knowledgeable team members who recognize their customers and can identify irregular activity. Real-time alerts help flag unusual activity the moment it occurs. Still, even the best tools with your financial institution can’t replace the role you play in protecting your information, reviewing your accounts regularly and reporting anything out of the ordinary immediately.
One of the biggest misconceptions about financial fraud is that it only happens to the uneducated or unaware. That’s far from the truth. Scammers’ tactics are always evolving and it’s difficult to keep up. Scams have become sophisticated and convincing, fooling even the most knowledgeable victims. Fraud can happen to anyone, at any time.
If you think you’ve been targeted, speak up right away. Talk with someone you trust or contact your financial institution directly. Don’t hesitate or feel embarrassed — reporting suspicious activity quickly can help minimize damage. The sooner you reach out, the sooner your financial institution can help set things right.
To stay protected:
- Review your accounts frequently and sign up for transaction alerts.
- Use multifactor authentication when available.
- Never share personal or financial information through email, text, or social media.
- When in doubt, pause before clicking or responding.
Here’s the bottom line: staying vigilant about financial fraud isn’t just for the holidays — it’s something we all should practice year-round. By staying aware and working together as a community, we can keep our financial well-being safe and secure in every season.
Teresa L. Fotta is AVP, Enterprise Risk Management at American Eagle Financial Credit Union.