As the holidays approach, fraudsters everywhere are busy crafting their own wish lists—not for the latest gadgets or a trip to a luxury resort, but for opportunities to exploit businesses and consumers. While most of us are focused on spreading holiday cheer, fraudsters are dreaming of the vulnerabilities they hope businesses leave unchecked. 

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Criminals may have a lot on their wish list this year, but businesses can put coal in their stocking by implementing robust identity verification and anti-fraud measures. To help you stay safe, we’ve created a fraud-focused spin on “The 12 Days of Christmas,” offering actionable tips to stay safe this holiday season—and well into the new year.

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A Fraudster with a (Deep)Fake ID

Fake IDs and counterfeit documents are on the rise. And with the help of generative AI, fraudsters can create deepfake images and documents that look stunningly like the real thing. Whether it's for identity theft or unauthorized access, ensure you're using strong verification tools to authenticate identity documents

Tip: Businesses can use AI-powered ID document verification tools to spot forgeries and alterations to keep bad actors out.

Two-Factor Authentication

Fraudsters love accounts without an extra layer of security. Two-factor authentication (2FA) is a simple but effective way to protect user accounts, adding an extra layer of security that can frustrate fraudsters

Tip: Enable 2FA on all accounts, especially financial, email, and social media. 

Three Fraudsters Faking

Accurate biometrics tools are a key for businesses to protect their platforms from attacks. With robust biometrics, you can be assured that every user is who they claim to be and protect against stolen identities, impersonation and ATO’s and accurately re-authenticate returning users to reduce fraud.

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Tip: By implementing facial biometrics at the registration and login processes, online businesses can authenticate users, effectively deter account takeover attempts, and reduce the risk of fraudulent activities.

Furthermore, leveraging automation, facial biometrics can streamline the onboarding process, reduce the need for manual checks, increase operational efficiency, and maintain high levels of security.

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Four Fake Bets

The legalization of sports betting in jurisdictions worldwide has been a boon for tax-collecting local governments and gaming enthusiasts. But it also has attracted fraudsters like flies to honey. With the amount of money following through the sports betting and gambling industry, attacks such as ATOs, phishing, bonus abuse and much more are heavily targeting this area. 

Tip: Betting operators should combine powerful document verification with biometrics and ongoing monitoring to ensure the integrity of their platforms and to protect good users from harm. 

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Five Stolen Log-Ins

With the amount of data available for fraudsters to purchase cheaply on the Dark Web, Account Takeover (ATO attacks) are an easy way for them to cash in, by using bot programs to try username/password combinations at scale until a match is found. Once they compromise an account, fraudsters can use it to drain money, if it is linked to a payment mechanism, or to commit further fraud such as laundering money or phishing. 

Tip: By combining the latest technologies, such as artificial intelligence, machine learning, facial biometrics, facial authentication, device fingerprint, OCR, computer vision, and more, businesses can detect and stop ATO attacks and protect users. 

Six Phishers A-Preying

Phishing attacks are increasing in both frequency and sophistication. Fraudsters are using not only text-based communications such as email and SMS but also audio and video messages to promulgate phishing scams on unsuspecting users. 

Tip: Always be vigilant when receiving a message that seems dubious, be sure to hover over links to see where they lead,  double check the ending email address and verify before responding. 

Seven Social Scammers

During the holiday season, scammers prey on the heightened pace of life and the emotional goodwill that comes with the festivities. Social engineering scams—manipulative tactics that exploit human psychology rather than technical weaknesses—are a key weapon in their arsenal. These scams often take advantage of the increased activity in online shopping, package deliveries, and charitable giving.

Tip: Look for typos, generic greetings (e.g., "Dear Customer"), and rushed language, as well as cross-check tracking information directly on the courier’s official website. Companies rarely (if ever) rarely initiate unsolicited contact for personal information.

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Eight Bots A-Faking

AI-generated images, videos, or audio designed to mimic real people are becoming a significant threat in the digital landscape. What used to be considered cutting-edge technology is now widely accessible, allowing fraudsters to create convincing forgeries that fool even the sharpest eyes.

During the holiday season, deepfake threats rise as businesses process increased volumes of transactions and identity verification checks. Fraudsters leverage deepfakes to bypass traditional systems, gain unauthorized access, or manipulate their victims.

Tip: Businesses should invest in tools that can detect manipulated media and verify identities effectively. While AI can be used for malicious purposes, AI-powered detection tools can help spot subtle fakeries that the human eye cannot. 

Nine Fraudulent Apps

The holiday season often brings a surge in downloads for shopping, travel, and entertainment apps. Unfortunately, fraudsters capitalize on this trend by creating malicious apps designed to steal personal information, spread malware, or trick users into financial scams. These fraudulent apps are often disguised as legitimate ones, featuring convincing logos, names, and descriptions to deceive unsuspecting users.

Tip: Only download apps from official app stores and verify their legitimacy through reviews and ratings. Double check the app's publishers and cross reference its name and logo with official websites. 

Ten Criminals A-Selling

The commodification of fraud, where organized crime syndicates offer fraud tools (phishing, deepfakes, botnets, etc.) as services is a huge trend. It mirrors legitimate SaaS models, making it easier for non-expert criminals to perpetrate sophisticated attacks. Some of these services even offer dedicated user-support communications and how-to videos!

Tip: Consumers and businesses alike have to be aware of the nature of all different types of fraud attacks, how they are carried out and how to spot them. 

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Eleven Suspicious Profiles

In the digital world, fake profiles have become one of the most effective tools for fraudsters to deceive and manipulate individuals. Whether it’s social media platforms, online marketplaces, or dating apps, scammers create false profiles to exploit unsuspecting victims. These profiles can be used to conduct phishing attacks, perpetrate romance scams, or trick people into making financial transactions or sharing sensitive information. 

Tip: Scrutinize profiles before engaging and report anything suspicious to the platform that you are engaging on. 

Twelve Months of Vigilance

Fraud doesn’t end with the holidays. Staying vigilant year-round is essential to protecting your identity and finances.

Tip: Consumers should regularly review credit reports, update passwords, and stay informed about emerging scams and trends. Businesses should always make sure they have the latest technology and processes in place that can detect and stop increasingly advanced fraud attacks. 

Conclusion:

The holiday season should be a time for celebration, not for dealing with the aftermath of fraud. By following these 12 tips, you can protect yourself and your loved ones from common scams and build habits that keep you safe all year long.

Ready to stay one step ahead of fraud? Discover how Caf can help you secure your identity and business with advanced fraud prevention tools.

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