Holiday Fraud and Scams to Watch This Season
The holiday season from Halloween through Black Friday, Cyber Monday, Christmas, and New Year, is the busiest and most profitable period for businesses. As shoppers hunt for deals, promotions surge, and travel spikes, it is also the most active period for fraudsters.
From fake stores to phishing campaigns and account takeovers, holiday fraud continues to evolve alongside new shopping habits and technologies. Organizations need to be prepared to respond to these threats while safeguarding both revenue and customer trust.
With millions of digital transactions, high call volumes, and increased customer interactions, businesses across industries, from banking and fintech to telecommunications, need to adopt proactive measures to detect, prevent, and mitigate fraud before it impacts operations or customers.
1. Payment Fraud and Digital Wallet Fraud
During the holiday period, transaction volumes across cards, digital wallets, and mobile apps increase significantly. Fraudulent transactions can sometimes blend into legitimate activity, making detection more challenging.
Fraud Risks:
- Card-not-present (CNP) and account takeover (ATO)
- Synthetic identities and transaction laundering
- BNPL and digital wallet abuse
Safeguarding Revenue Streams for Fintechs, Banks, and Digital Wallets
Deploy real-time behavioral analytics and AI-based anomaly detection to score transactions dynamically. Identify inconsistencies in velocity, geolocation, and spending patterns to prevent unauthorized activity without disrupting legitimate commerce.
2. Telecom Network and Mobile Fraud
High call volumes, roaming activity, and spikes in subscriber onboarding during the holiday season can create opportunities for fraud. Fraudsters may exploit roaming channels, SIM swaps, or subscription fraud attempts to bypass controls.
Fraud Risks:
- Roaming bypass and IRSF (International Revenue Share Fraud)
- Subscription fraud
- SIM swapping and identity theft
Preventing Roaming and Subscription Fraud in Telecom Networks
Use signaling intelligence and network analytics to detect unusual call patterns, roaming behavior, and bypass attempts in real time. Pair this with identity verification during SIM activation to block fraudulent subscriptions.
3. Account Takeover and Identity Fraud
With increased online logins and transactions, accounts can become targets for unauthorized access. Fraudsters may attempt to exploit stolen credentials or create synthetic identities to conduct fraudulent activity.
Fraud Risks:
- Unauthorized access to customer accounts
- Stolen or compromised credentials
- Synthetic identity usage for fraudulent transactions
Protecting Customer Accounts and Identity
Monitor login patterns, device usage, and account activity. Application risk solutions and multi-factor authentication help prevent account takeover and synthetic identity fraud.
4. Scam Calls, Robocalls and SMS
During the holiday period, phone and messaging channels often see increased activity, which can be exploited by fraudsters. Automated calls, short-duration “one-ring” calls, and impersonation attempts, often impersonating major carriers, banks, and payment providers, are prevalent tactics. These methods aim to deceive victims into sharing sensitive information, potentially leading to financial loss or exploitation.
Fraud Risks:
- Robocall and scam call fraud
- Wangiri fraud (one-ring premium-rate scams)
- Voice and SMS phishing (Vishing/Smishing)
Detect, Alert and Prevent Fraudulent and Scam Calls and Texts
AI-based call analysis, behavioral patterns, and signaling intelligence detect robocalls, Wangiri fraud, and phishing attempts without disrupting legitimate communication.
5. Money Mule, Transaction Laundering, and First-Party Fraud
Increased transaction activity can be used by fraudsters to move funds through intermediaries or manipulate account-based processes. Such activity may not always be immediately distinguishable from legitimate customer behavior.
Fraud Risks:
- Transaction laundering and mule networks
- AML and KYC compliance breaches
Monitoring and Controlling Transaction Risks
Anti-money laundering solutions track high-risk transactions and detect structured fund movement. AI analytics and credit risk management identify unusual patterns, reducing exposure to fraud.
Protect Your Revenue and Customer Trust This Holiday Season and Beyond
At Neural Technologies, we empower businesses with AI-powered Revenue Protection solution suite designed for high traffic volume, evolving fraud and scam risks landscape.
Deliver secure, seamless experiences this holiday season with intelligence that works across your entire fraud lifecycle. Request a Demo or Speak to Our Fraud Prevention Team to learn how we can help protect your digital ecosystem.
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