Tis the Season for Online Scams and Fraud – Innovation & Tech Today

The holiday season is upon us, and while many refer to this time as the season of giving, it’s also known to be a season of scamming and fraud. With online shopping becoming the most common method of getting and sending gifts for the holidays, consumers may find themselves more susceptible to being scammed online this holiday season than ever before.

An Increase in Scams

Scam and fraud have been ongoing problems for years, but as times have changed, so have fraudsters, who are becoming increasingly technologically savvy. Because of this, it’s no surprise that fraud and scam rates have risen 14% since 2021. According to statistics compiled by All About Cookies, 89% of people have experienced some type of fraud or scam this year—or almost 9 in 10 people. That’s up from 82% in 2024 and up significantly from 75% in 2021, which is a staggering increase in just 5 years.

Holidays are Ripe with Fraud

The holiday season is rife with fraud attempts due to the high volume of online shopping and gift giving during these months. A TransUnion analysis found that Thanksgiving Day was the most popular day for fraud attempts last year. Black Friday and Cyber Monday are also popular days for scammers as digital fraudulent translation attempts rise 418% on Black Friday and 356% on Cyber Monday, respectively, according to a 2025 SEON report.

It seems that many consumers have traded the effort and energy of standing in long lines and big crowds for a more leisurely shopping experience online. That mentality may be costing them in the long run. According to the above findings, it seems many consumers are letting their guard down more easily when shopping online due to the perceived ease of buying gifts from their own home, which is allowing adept scammers and fraudsters to strike more effectively.

Gift cards are a staple for co-workers or family members you’re not quite sure what to get, making it one of, if not the most popular holiday gifts. However, this easy go-to can be risky, according to recent consumer data. An AARP survey revealed that 15% of consumers surveyed redeemed a gift card with no funds this year, a result consistent with last year’s findings. According to the Federal Trade Commission, gift card fraud like this cost consumers $212 million in the past year. So you may want to take a second look before you get burned on a gift card that goes from an easy, cheap gift to money effectively being thrown away.

Younger Generations Experience More Fraud

On top of an exponential increase in overall fraud since 2021, digging into the different threat levels for each generation also reveals interesting trends. In fact, younger generations, such as Gen Z and Millennials, are experiencing online scam attempts at a higher rate than their older peers.

In 2024, 35% of respondents reported encountering fraud while shopping online, a figure that increased to 39% in 2025. Shoppers of nearly all ages experienced an uptick. Adults aged 45–64 were the only group whose online shopping fraud rate did not rise, remaining steady at 37% in both years.

These findings could mark a shift in the ever-changing landscape of online fraud. Normally, when you think of a fraud victim, you picture someone older, but as time has gone on, younger, more chronically online people are being targeted by fraudsters and scammers. This could also indicate an increased sophistication in fraud attempts.

Social Media Loss Is Up YoY

Social media fraud is now more rampant than ever, according to findings put together by All About Cookies. 2024 was a record year for social media fraud, as it’s estimated that $12.8 billion was lost. To put it in perspective on how big a jump that is, $3.3 billion was lost due to social media fraud in 2020. That means that social media fraudsters stole $9.5 billion more than 4 years prior. The unregulated and peer-to-peer nature of social media lends to the idea that many people are more susceptible to fraud on these platforms than on normal consumer websites.

With the rise of social media marketplaces in recent years, it’s no surprise that many users are now experiencing high amounts of scams on social media in addition to fraud. According to a recent survey, 79% of Facebook users have seen an obvious Facebook marketplace scam. Add that to recent findings that $1.9 billion was lost to social media scams in 2024, and you’ll see that scammers love using these social sites as ways to take advantage of unsuspecting social media users.

Stay Merry, but Stay Vigilant

Online shopping during the holidays has now become the norm, and with the technological advancements of digital consumerism comes an increase in fraud/scam attempts. It seems that as time goes on, more online consumers are letting their guard down when it comes to making online transactions. An AARP survey showed that only 27% of respondents could pass an online safe-shopping quiz, which could be a major reason as to why scam numbers are constantly rising. Consumers need to be able to adopt smart digital e-commerce practices such as using credit cards for payments and avoiding clicking on suspicious links to limit their chances of major financial repercussions.