Top Fraud Trends as Holidays Approach

Top 5 Scam Trends to Watch Now

As the holidays approach, here are some of the top fraud trends we’re watching: 

  1. P2P scams:

    Per Javelin Strategy & Research, 18 million Americans were defrauded through scams involving digital wallets and person-to-person payment apps in 2020. That number has not declined—if anything, it’s increasing as P2P grows in popularity. In fact, half of respondents to a recent survey from Allstate say that P2P scams concern them, and 29% say either they had been a victim or know someone who has. 

    One of the latest scams in this arena is the “flip.” In this scheme, the victim receives a direct message or views a social media post requesting that they send a certain amount of money—typically small dollars—in return for a promised larger sum. The victim, sensing a quick payday, sends the money, and never hears from the requester again. 

  2. E-commerce scams:

    As supply chain issues captured the world’s attention, shipping fraud increased nearly 800% worldwide in the past year— making it one of the biggest threats to consumers. 

    One common type of e-commerce scheme is the “pre-sale” scam, where fraudsters pose as sellers on social media platforms and offer lucrative student discounts. The victim, lured by attractive deals, submits payment upfront, and the fraudster vanishes without delivering the items purchased. Easy targets include students looking to purchase college textbooks at a discount, as well as consumers in the market for pricey, highly desirable items like concert merchandise. 

    The “giveaway” scam is another common method used by fraudsters, whereby they entice unwitting consumers to provide their personal credentials in exchange for “free” stuff. 

  3. Employment scams:

    The industry has seen a rise in employment-related scams and phishing attempts since the pandemic. According to the 2021 BBB Scan Tracker Risk Report, employment scams were the second-riskiest type of fraud behind online purchase scams for the 18-24 year-old demographic, and third-riskiest for those in the 25-34, 35-44 and 55-64 brackets. 

    LinkedIn holds the top spot as the most impersonated brand used in phishing scams, accounting for 45% of phishing emails observed in the second quarter of 2022. 

  4. Scholarship/financial aid scams:

    Scams aimed at students, prospective students and recent graduates are a seasonal problem in the fall, as the deadline for financial aid approaches in October. Following the Biden Administration’s recent loan forgiveness announcement, there has been a sharp increase in education and student loan scams. 

  5. Romance fraud:

    As Americans increasingly go online looking for love, the fraudsters follow. According to Bloomberg, fraud losses on social media ballooned in 2021 to $770 million. Of the most popular types of fraud conducted over social media, 24% were romance scams, behind only investment scams in volume.