Consumer protection organizations are sounding alarms about a surge in sophisticated fraud operations targeting Americans during the holiday shopping season, with the Better Business Bureau releasing its annual compilation of the most prevalent scams threatening financial security and personal information.
The catalog, dubbed the "12 Scams of Christmas," documents fraud schemes that spike dramatically between Thanksgiving and New Year's Day when consumers are purchasing gifts, making charitable donations, booking travel arrangements, and seeking seasonal employment opportunities. These elevated activity levels create ideal conditions for criminals to exploit rushed decisions and generous impulses.
Clay Campbell, marketing director for the Better Business Bureau of Greater Maryland, emphasized that awareness represents the most effective defense against holiday fraud. He urged consumers to bypass suspicious links entirely rather than clicking to investigate, noting that even brief engagement can compromise personal information or install malicious software.
Artificial intelligence has dramatically amplified scammer capabilities during the 2025 holiday season. Fraudsters now deploy sophisticated algorithms to generate realistic product advertisements, fake customer service interactions, and convincing impersonation schemes that challenge even vigilant consumers to distinguish legitimate communications from fraudulent ones.
The 12 Scams of the Holidays
1. Misleading Social Media Advertisements
Artificially generated ads promoting deeply discounted luxury goods, popular toys, or hot-ticket items flood social media feeds. These advertisements redirect shoppers to counterfeit websites that collect payment information but never deliver products. The Better Business Bureau receives daily reports of consumers paying for items that never arrive or receiving counterfeit goods substantially different from advertised products.
2. Gift Card Draining Schemes
Criminals access physical gift cards in retail stores, record activation codes, and monitor accounts until funds are loaded. Scammers then drain balances before recipients ever use the cards. Additionally, fraudsters impersonate authority figures demanding payment via gift cards, knowing these transactions are nearly impossible to reverse or trace.
3. Fake Delivery Notifications
Text messages and emails impersonating USPS, UPS, FedEx, or other carriers claim delivery problems requiring immediate action. These communications include links directing victims to fraudulent websites designed to harvest login credentials, financial information, or personal data. The volume of legitimate package notifications during holidays makes these scams particularly effective.
4. Employment Opportunity Fraud
Fake job postings promise remote work, flexible schedules, and attractive compensation for seasonal positions. Scammers request upfront payments for application fees, training materials, or equipment that never materialize. Some schemes involve check-cashing operations where victims unknowingly participate in money laundering before discovering the fraudulent nature of their "employment."
5. Predatory Loan Offers
Financial pressure during gift-giving season makes consumers vulnerable to loan scams guaranteeing approval regardless of credit history. These schemes require upfront fees for processing or demand sensitive personal information that criminals use for identity theft. Legitimate lenders do not guarantee approval or request payment before extending credit.
6. Lottery and Sweepstakes Deception
Victims receive notifications claiming they've won prizes ranging from cash jackpots to expensive merchandise. Scammers request processing fees, taxes, or shipping charges before releasing winnings that never existed. Some schemes involve multiple payment demands as fraudsters invent additional obstacles preventing prize delivery.
7. Cryptocurrency Investment Schemes
Rising cryptocurrency values attract investor interest that scammers exploit through fake trading platforms. These operations display impressive account growth to encourage additional deposits, but victims discover withdrawal impossibility when attempting to access funds. The irreversible nature of cryptocurrency transactions makes recovery virtually impossible.
8. Imposter Operations
Criminals impersonate bank representatives, airline agents, utility workers, or customer service personnel to create urgency around fabricated problems. Victims may be told their accounts face closure, flights are canceled, or utilities will be disconnected unless immediate payment resolves the manufactured crisis. Legitimate organizations do not demand instant payment through untraceable methods.
9. Peer-to-Peer Payment Exploitation
Scammers target Zelle, Venmo, Cash App, and similar platforms by posing as buyers, sellers, or financial institution representatives. These payment services offer limited fraud protection compared to credit cards, making fund recovery extremely difficult once transfers complete. Criminals create elaborate scenarios pressuring victims to send money before discovering the deception.
10. Fraudulent Charity Appeals
Holiday generosity makes donors susceptible to fake charitable organizations and individuals impersonating clergy or community leaders. Scammers request donations through gift cards, wire transfers, or cryptocurrency - payment methods legitimate charities rarely accept. The emotional appeal of helping others during holidays reduces skepticism about suspicious solicitation methods.
11. Pet Purchase Scams
Approximately 80 percent of sponsored pet advertisements on social media may be fraudulent, according to consumer protection experts. Scammers advertise purebred puppies or designer breeds at attractive prices, collect deposits or full payment, then disappear. Victims seeking companionship during holidays prove particularly vulnerable to emotional manipulation around adorable animal photos.
12. Romance and Relationship Fraud
Loneliness intensifies during holiday seasons, creating opportunities for romance scammers to exploit emotional vulnerability. Criminals develop relationships through dating apps or social media before introducing financial requests disguised as emergencies, investment opportunities, or travel expenses. These schemes can persist for months as fraudsters cultivate trust before requesting money.
Consumer advocates identify consistent warning signs across these diverse fraud categories. Scammers typically create artificial urgency, demand secrecy from victims, and insist on payment methods offering minimal fraud protection or transaction reversal possibilities.
The Better Business Bureau emphasizes that legitimate businesses and organizations do not request payment through wire transfers, prepaid debit cards, gift cards, or cryptocurrency for standard transactions. These payment methods provide criminals with anonymity and make fund recovery virtually impossible for victims.
🛡️ Protection Strategies
- Slow down decision-making: Scammers exploit rushed choices during hectic holiday periods
- Verify before clicking: Navigate directly to official websites rather than following links in unexpected messages
- Research unfamiliar businesses: Check Better Business Bureau profiles and read customer reviews before purchasing
- Confirm charity legitimacy: Use Charity Navigator or GuideStar to verify organizations before donating
- Use protected payment methods: Credit cards offer better fraud protection than debit cards, wire transfers, or gift cards
- Enable security features: Activate two-factor authentication on financial accounts and shopping platforms
- Verify website security: Ensure URLs begin with "https://" and display padlock icons before entering information
- Discuss major decisions: Consult trusted friends or family before sending money to unfamiliar recipients
- Trust instincts: If offers seem unrealistic or communications feel suspicious, they probably are
- Report suspicious activity: File reports with BBB Scam Tracker to warn other potential victims
Financial institutions and technology companies have implemented enhanced security measures to combat holiday fraud, but consumer vigilance remains the primary defense. Banks cannot recover funds sent through peer-to-peer payment platforms to scammers, and cryptocurrency transactions are essentially irreversible once completed.
The Federal Trade Commission reports that Americans lost billions of dollars to fraud in recent years, with online shopping scams ranking among the most reported categories. Holiday seasons concentrate these losses into compressed timeframes as transaction volumes surge and attention spans decrease.
Older adults face disproportionate targeting by scammers who perceive seniors as having accumulated savings, demonstrating higher trust levels, and possessing less familiarity with digital threats. Consumer advocates urge families to discuss these scams proactively with elderly relatives who may be particularly vulnerable.
Social media platforms have emerged as primary vectors for fraud distribution. Scammers create fake business pages, impersonate customer service accounts, and purchase advertising for fraudulent offerings. The visual nature of platforms like Facebook, Instagram, and TikTok makes product scams particularly convincing when criminals use professional-looking photographs and videos.
Retailers and financial services companies typically do not send unsolicited emails or text messages requesting account updates, password resets, or payment information. Consumers receiving such communications should access accounts directly through known websites or phone numbers rather than responding to suspicious messages.
The Better Business Bureau maintains a Scam Tracker where consumers can report fraud attempts and review warnings about schemes targeting their communities. This crowdsourced intelligence helps identify emerging threats and provides real-time warnings to potential victims before they lose money.
Law enforcement agencies acknowledge that holiday fraud investigations face significant challenges. Scammers often operate internationally using sophisticated technology to obscure their identities and locations. Victims may feel embarrassed about falling for scams and delay reporting, reducing chances of successful prosecution or fund recovery.
As the holiday season progresses, consumer protection advocates emphasize that legitimate deals exist alongside fraudulent offers. The key distinction lies in taking time to verify seller legitimacy, understanding typical pricing for desired products, and recognizing that genuine bargains rarely require instant decisions or unconventional payment methods.
Georgia residents encountering suspected fraud can report incidents to the Better Business Bureau, Federal Trade Commission, and local law enforcement agencies. While fund recovery may prove difficult, reporting helps authorities track fraud patterns and potentially prevent additional victims from losing money to the same schemes.