The holiday season, with its surge in shopping, travel and festive activities, is also a peak period for scammers who seek to exploit the spirit of generosity and the flurry of financial transactions. In 2024, as digital technology becomes more integrated into daily life, new and evolving scams pose significant threats to consumers and financial institutions alike. Understanding these scams and employing strategies to guard against them is vital for both consumers and bank employees who are at the front line of detecting fraudulent activity.

Below are six of the most prominent scams likely to be at the forefront of the holiday season.

1. Phishing and Smishing Attacks

Phishing, where attackers impersonate legitimate organizations to obtain sensitive information, remains a top threat.¹ In 2024, scammers have improved their tactics, using advanced technology to craft convincing emails and text messages. Smishing, or phishing via SMS, is particularly popular as more consumers rely on their smartphones for online shopping and financial transactions.²

Example scenario: A consumer receives a text message purportedly from their bank or a popular retailer, warning them of a suspicious transaction and prompting them to click a link to “secure” their account. Clicking this link can lead to a fraudulent site designed to steal login credentials or prompt the installation of malware.

Recommendation for Consumers:

• Verify the sender’s authenticity by directly contacting the institution or retailer using verified phone numbers or websites.
• Avoid clicking on links in unsolicited emails or texts, even if they seem urgent.

Advice for Bank Employees:

• Be alert for customer accounts that show unusual activity immediately after a suspicious message has been reported.
• Educate customers about the bank’s communication methods, emphasizing that legitimate organizations never ask for passwords or sensitive information via email or text.

2. Fake E-commerce Sites and Social Media Ads

As online shopping grows, fake e-commerce sites have become more sophisticated. In 2024, scammers are leveraging social media ads to attract consumers to well-designed but fraudulent websites that offer deals too good to be true.

Example scenario: A shopper finds an ad on social media for luxury or popular goods at an unbelievable discount. Clicking the ad takes them to a website that looks legitimate but is a scam. Payment results in sharing card details and other sensitive personal data, a potential loss of funds, and often the product never arrives.³

Recommendation for Consumers:

• Research online retailers thoroughly, checking reviews and verifying the website’s URL for signs of authenticity (e.g., HTTPS and legitimate domain names).
• Use secure payment methods, like credit cards or services that offer fraud protection.

Advice for Bank Employees:

• Monitor accounts for sudden, high-value online purchases from lesser-known sites, which could be indicative of fraudulent activity.
• Assist customers in disputing fraudulent charges swiftly and guide them on steps to protect their accounts.

3. Charity Scams

Scammers often take advantage of the season’s charitable spirit. In 2024, these scams have become more targeted, using email campaigns that appear to be from real nonprofits or mimicking well-known charity organizations⁴ with slight name changes.⁵

Example scenario: Consumers receive emails or social media messages asking for donations to disaster relief funds or community initiatives. These messages may link to cloned websites where donations go straight to scammers.

Recommendation for Consumers:

• Always donate through well-known, established charity websites or platforms and verify the legitimacy of new charities through services like the Better Business Bureau’s Wise Giving Alliance.
• Be cautious of unsolicited requests for donations and verify their authenticity before contributing.

Advice for Bank Employees:

• Be vigilant about sudden, repeated donations to unfamiliar organizations.
• Educate customers about safe giving practices, emphasizing how to spot fraudulent charitable solicitations.

4. Gift Card Scams

Gift cards are popular holiday gifts, but they are also frequently used by scammers as an untraceable form of payment.⁶ In 2024, scammers continue to impersonate tech support agents, government officials, or even friends and family members, demanding payment in the form of gift cards.

Example scenario: A scammer poses as a representative from the Internal Revenue Service or a utility company, threatening immediate legal action unless payment is made through gift cards. Once the victim provides the card information, the funds are quickly depleted.

Recommendation for Consumers:

• Be skeptical of anyone requesting gift card payments, as legitimate companies or agencies never accept them as a form of payment.
• Report any suspicious calls or messages to local authorities or consumer protection agencies.

Advice for Bank Employees:

• Watch for unusual gift card purchases or withdrawals that are atypical for a customer’s spending behavior.
• Inform customers that banks and legitimate companies never ask for payment in gift cards.

5. Travel Scams

The holiday season also brings an increase in travel, which scammers exploit with fake travel deals, bogus accommodation listings and fraudulent ticket sales.⁷ In 2024, scammers have begun using cloned websites of reputable travel agencies and online booking platforms to defraud travelers.

Example scenario: A traveler books a holiday rental from a site that looks identical to a trusted platform but is, in fact, a scam. After making a payment, they discover that the rental does not exist or is not affiliated with the platform they thought they were using.

Recommendation for Consumers:

• Use well-known booking sites and verify the website’s URL carefully before making any payments.
• Be cautious of deals that are significantly cheaper than the market rate and ask for independent verification of listings.

Advice for Bank Employees:

• Pay attention to large, international transactions tied to travel agencies that are not commonly seen in a customer’s history.
• Collaborate with fraud teams to trace suspicious travel payments quickly and advise customers on reclaiming lost funds when fraud is detected.

6. Package Delivery Scams

With the increase in online shopping, scammers are capitalizing on package delivery notifications.⁸ In 2024, fraudulent delivery notices, sent via email or SMS, prompt users to click a link to reschedule a delivery or pay a delivery fee.⁹

Example scenario: A consumer receives a message stating that a package could not be delivered and must click a link to reschedule. The link leads to a page that asks for personal details or payment, leading to identity theft or financial loss.

Recommendation for Consumers:

• Contact the delivery service directly through their official website or customer service to verify any delivery issues.
• Avoid clicking on links from unknown senders claiming to be delivery services.

Advice for Bank Employees:

• Be alert to instances where customers report suspicious charges related to small, unknown delivery companies.
• Implement educational initiatives about these scams, encouraging customers to double-check unsolicited notifications.

Conclusion

The holiday season should be a time for joy and celebration, not for becoming a victim of scams. By staying informed about the latest threats and practicing caution, consumers can safeguard their personal information and finances. Bank employees play a critical role in identifying and mitigating these risks, protecting both their institutions and their customers. By fostering awareness and collaboration, 2024 can be a safer year for all.

Dustin Eaton, CAMS, CGSS, CAFCA, CAMS-RM, risk and compliance professional,

1. “Spoofing and Phishing,” Federal Bureau of Investigation, https://www.fbi.gov/how-we-can-help-you/scams-and-safety/common-frauds-and-scams/spoofing-and-phishing
2. “How To Recognize and Avoid Phishing Scams,” Federal Trade Commission, https://consumer.ftc.gov/articles/how-recognize-and-avoid-phishing-scams
3. Carmen Aguilar García, Sarah Marsh and Philip McMahon, “Chinese network behind one of world’s ‘largest online scams’,” The Guardian, May 8, 2024, https://www.theguardian.com/money/article/2024/may/08/chinese-network-behind-one-of-worlds-largest-online-scams
4. International Association of Better Business Bureaus, “BBB Tip: Charity scams—Avoid questionable charitable appeals and give with confidence,” Better Business Bureau, October 19, 2020, https://www.bbb.org/article/news-releases/16911-bbb-tip-charity-scams
5. “Charity Donating Tips,” CharityWatch, https://www.charitywatch.org/charity-donating-tips
6. David Gotfredson, “Vista woman loses $24,000 in Lowes gift card scam,” CBS 8, September 20, 2024, https://www.cbs8.com/article/news/local/woman-loses-24k-in-lowes-gift-card-scam/509-4660cdf8-c01a-4236-982e-3a0c0681b763
7. Julia Brookes, “Seven of the biggest travel scams (and how to avoid them),” The Times, April 11, 2024, https://www.thetimes.com/travel/advice/biggest-travel-scams-nfm2m3p7p
8. James Reddick, “Bogus post office texts deliver a ‘shocking’ amount of traffic to scam websites,” The Record, April 25, 2024, https://therecord.media/fake-postal-service-texts-web-traffic-scam-sites
9. John Shumway, “U.S. Postal Service phishing scams rising after post-holiday lull,” CBS News, January 30, 2024, https://www.cbsnews.com/pittsburgh/news/u-s-postal-service-phishing-scams/