How to Protect Yourself from ID Theft and Scams This Holiday Season and Beyond

Revised – November 20, 2025

The holiday season brings a surge in shopping, travel, hiring, charitable donations, and year-end financial activity. Unfortunately, it also brings a surge in fraud, cybercrime, and identity theft—and small and medium businesses and consumers are increasingly the primary targets.

Criminals now rely on AI, automation, stolen data, and psychological manipulation, making scams harder than ever to detect. Identity theft and financial fraud are no longer limited to consumers; businesses, employees, vendors, and even children are fair game. But with the right precautions, you can drastically reduce your exposure during the holidays and all year long.

The Federal Trade Commission (FTC) and FBI continue to report record-breaking losses from fraud. Staying proactive and trained is your best defense. Here’s how to protect your business, your employees, and your family.

Stay Safe While Shopping In-Person

Although cybercrime has become the biggest threat, traditional theft still spikes during the holidays—especially in crowded business areas, malls, and public spaces. Here are some tips:

• Protect banking and business cards. Use bags with zippers and carry only the cards and documentation you actually need.
• Use credit, not debit. Credit cards offer far better fraud protection than business or personal debit cards tied directly to your bank balance.
• Watch for card skimmers. ATMs, self-checkout lanes, gas pumps and kiosks are prime targets. Inspect card readers before use.
• Don’t lose sight of your card. Criminals can copy card data in seconds. Keep receipts and monitor transactions closely through your financial institution.
• Be alert to theft of business devices. Laptops, phones, and tablets used for business tracking or payments are top targets. Encrypt and password-protect them.

Protect Yourself While Shopping and Paying Online

Online shopping continues to dominate holiday spending but look out for online scams. Here’s how to stay secure:

• Verify websites before making a purchase. Look for accurate spellings, correct URLs, and clear customer support contact information. Do not assume a site is safe just because it shows https and a lock icon. Fraud sites now use encryption too.
• Be cautious with emails and links. Ignore urgent “limited offer” links, fake shipping notifications, or account-update requests. Go directly to the official website instead of clicking email links.
• Strengthen device security. Update antivirus, operating systems, and browsers before holiday shopping. Use two-factor authentication (2FA) on all accounts that handle payments or store personal data.
• Shop smart on mobile. Avoid shopping on public Wi-Fi connections. Close apps and browser windows after use, and clear saved payment data if you don’t need it to remain stored.

Fortify Your Home and Office Against Identity Theft

Many scams begin by thieves stealing mail, documents, devices or unattended packages.

• Retrieve mail daily. Sensitive business and personal mail left overnight is an open opportunity.
• Use locking mailboxes, Amazon Lockers, or secure delivery locations. Porch theft rises sharply during the holidays.
• Shred documents. Bank statements, business invoices, medical bills, credit card offers, and anything with account or ID numbers should be shredded, not recycled.
• Switch to paperless billing and statements. It reduces risk and improves traceability.
• Monitor your credit report. Use AnnualCreditReport.com to scan new accounts opened without your knowledge.
• Consider a credit freeze: It stops criminals from opening new lines of credit in your name—business or personal.

Protect Children’s Identities

Children are increasingly becoming targets for identity theft because their credit histories are often unmonitored. The impact can go unnoticed for years, making the losses devastating.

• Check whether your child has a credit file. If they do not, that’s normal. If they do, that’s a red flag.
• Avoid entering children’s Social Security numbers whenever possible. Medical and school forms almost never require it.
• Educate children and teens about online safety. Gaming platforms, social platforms, and “friends” lists are major exploitation targets.
• Use parental controls when possible: Monitor sign-ups and in-app purchases, especially during holiday gaming activity.

Recognize New Holiday Scam Trends

Scammers adapt fast. Here are the most prominent holiday fraud threats facing businesses and consumers right now:

• AI voice-cloning scams. Criminals imitate the voice of a coworker, manager, or family member to ask for money urgently.
• Fake shipping / package rescheduling messages. Texts pretending to be UPS, USPS, FedEx or Amazon requesting a fee to “complete delivery.”
• QR code attacks. Criminals replace legitimate QR codes in parking lots, stores, or restaurants. Scanning sends you to a fraudulent payment site.
• Return-refund fraud. Fake “customer support” websites that steal login or payment information during holiday returns.
• Fake charity campaigns. Verify charities using CharityNavigator.org or the Tax Exempt Organization Search tool from the IRS before donating.
• Buy-now-pay-later scams (BNPL). Fraudsters impersonate BNPL services like Affirm, Afterpay, or Klarna to collect identity and banking information.
• Gift-card fraud. Criminals alter cards before purchase and drain them once activated. Only buy from staffed counters, not open racks.
• Peer-to-peer (P2P) payment fraud. Zelle, Venmo, and PayPal payments sent under false pretenses are rarely reimbursed by banks.

Year-Round Identity Protection Tips That Make the Biggest Difference

These are the highest-impact protections for both businesses and families:

• Use two-factor authentication everywhere, but especially on email, banking, accounting platforms, and cloud storage.
• Never reuse passwords. Account takeovers are now driven mostly by reused passwords leaked from past breaches.
• Use a password manager to generate and store unique passwords.
• Turn on real-time transaction alerts for every card and bank account.
• Use digital wallets (Apple Pay, Google Pay, etc.) when available. They create a unique card number for every transaction.
• Consider default credit freeze. You can temporarily unfreeze accounts when you legitimately need credit.
• Train employees and family members. Most identity theft is triggered not by hacking but by a moment of trust given to the wrong person.

The holiday season is about spreading joy, not falling victim to scams. By staying vigilant and adopting these practices at home and in your business, you can protect your financial information and enjoy a worry-free holiday season and beyond.