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Special thanks to @Trevor Witchey, AAP, APRP, NCP, Senior Director, Payments Education for helping me write this blog!

It’s no surprise fraudsters made Santa’s naughty list. The holiday shopping rush means increased transactions, which gives them the perfect chance to hide scams, steal information and disguise fraudulent activity. Your account holders are at greater risk this season as they use their debit cards more frequently, shop online through unsecured websites and send money to friends and family more often.

Help your clients protect their wallets this holiday season with these simple tips to keep unwanted surprises — or lumps of coal — from landing on their account statements:

• Check online statements daily
  • This helps detect and stop fraud early.
  • It allows debit cards to be shut down quickly.
  • Unauthorized transactions or checks can be reported within tight return windows.
• If they’re not checking statements daily, suggest using text or email alerts and card controls that can be customized to their preferences
• • Don’t just set and forget.
  • Recommend reviewing settings periodically to make sure everything is up to date.
• Avoid mailing checks to family or friends
  • Mail theft is a major source of check fraud.
  • Fraudsters can intercept checks, alter them or create counterfeit copies with stolen information.
  • A check contains sensitive information including account numbers, signature, full name and address.
  • Anyone who doesn’t safeguard a check could leave it vulnerable to theft or to fraudsters photographing it for unauthorized use.
  • If sending a gift by mail, consider using gift cards or cash instead.
• Keep wallets and personal belongings secure while shopping
  • Physical theft increases during the holiday season.
  • Wallets are often left on counters or purses in shopping carts, making them easy targets.
  • Some fraudsters use distraction schemes where one person diverts attention while another steals items.
• Inspect card terminals before using them
  • Card skimmers can be placed on top of the existing terminal or hidden inside the reader. Skimmers steal card information from the EMV chip while also capturing entered PINs.
  • A safer alternative is to use tokenization, such as tapping a phone on the device. Tokenization replaces your card number with a random token that fraudsters cannot use.
• Protect your phone when using it at retailers
  • Keep your phone in a secure place to prevent theft and be aware of pickpockets.
  • Cover your hands when entering your passcode to avoid shoulder-surfing.
  • If a fraudster gains access to your phone and passcode, they could misuse it.
• Cover your debit card and hands when using a terminal
  • This prevents shoulder surfing and keeps PINs hidden.
  • Cameras are everywhere these days, whether installed by the retailer or placed by fraudsters.
• Be cautious when shopping online
  • A website starting with “https” doesn’t always guarantee full security. Only shop on trusted and reputable websites.
  • Fraudsters can steal sensitive information if they access a website’s database.
  • Use secure ID programs from MasterCard^® or Visa^® for added protection.
• Protect debit cards from Radio Frequency Identification (RFID) scanners
  • Fraudsters in crowded areas can use scanners to steal card information stored on the card.
  • The same tap-to-pay technology that makes transactions convenient can also be exploited.
  • Consider using RFID-protective card sleeves or wallets to reduce the risk of unauthorized scanning.
• Keep account, card and personal information private
  • Never give out this information when asked, as impersonation schemes by phone or in-person are common.
  • Legitimate financial institution representatives will never ask for account, card, user or personal information that they already have on file.
• Verify recipients before sending money via peer-to-peer (P2P) transfers
  • Make sure you know exactly who is receiving the funds.
  • Fraudsters can create fake Zelle^®, Venmo^®, PayPal^® or Cash App^® accounts.
  • Artificial intelligence (AI) technology is increasingly used to impersonate others electronically or even via audio.
  • Stop, think and verify before pressing “send” (just like our Did You Know video says). Call a known phone number to confirm it’s really your family or friend, as fraudsters often prey on urgency.
• Watch out for romance and investment scams this season
  • Scammers exploit loneliness or financial stress to request money for travel, emergencies or urgent needs.
  • Watch out for pig butchering scams that start with small, believable returns to build trust, then escalate until multiple accounts are drained. Red flags include urgent requests for funds, repeated asks to reinvest “profits” and unwillingness to communicate on verifiable channels.
  • Be skeptical of “get rich quick” offers that promise steady returns or pressure you to invest more.
  • Before wiring or investing, pause and verify by calling a known number, consulting a trusted contact or contacting the financial institution for guidance.

Below are some actionable fraud prevention strategies your team can implement this holiday season to protect clients, secure accounts and fortify your institution’s defenses:

• Train back-up staff and rotate duties for ACH and wire processing
  • Holiday and year-end periods often mean smaller teams, making it easier for fraudsters to exploit gaps.
  • Common fraud schemes targeting institutions include account takeover, business email compromise and impersonation of vendors, HR, employees, government agencies or technical support.
  • Most ACH and wire payments are recurring, so focus extra attention on new accounts or when existing account information suddenly changes.
  • Ensuring everyone is educated on fraud prevention reduces the chance of a rushed mistake being exploited.
  • Always ask for the “purpose of wire” and verify requests — especially from people who don’t usually use wires.
  • Before wiring or investing, pause and verify by calling a known number, consulting a trusted contact or contacting the financial institution for guidance.
• Perform careful reviews before granting online services
  • Verify anyone requesting to open accounts or access online services for P2P, Account-to-Account (A2A) or instant payments.
  • Identity theft remains a major threat to financial institutions. Performing commercially reasonable checks can help prevent fraud before it happens.
• Monitor deposit accounts for unusual activity
  • Most account activity is habitual, such as direct deposits, utility payments and regular purchases.
  • Holiday seasons may disrupt typical patterns, but last year’s activity can provide a baseline. Use transaction history to identify atypical activity, and any transactions that deviate from normal behavior should raise red flags.

While the holiday season is busy enough, account holders still need to be vigilant with their information and how it’s used. Encourage them to take advantage of their financial institution’s resources, such as checking online statements regularly and using alerts or card controls. Prompting your clients to pause and verify unusual transactions, especially those that deviate from their normal patterns, can help prevent headaches from a potential fraud incident.

Fraudsters, however, are always on the naughty list. They don’t take holidays, and they’re always scheming to turn the season in their favor. That’s why Santa is making a special stop at EPCOR on December 18 for our Fraud on the Naughty List: Letters to Santa webinar — a complimentary, member-exclusive event where he’ll answer your fraud questions and share jolly tips to keep fraudsters from stuffing your institution’s stockings with lumps of coal. Send your letter to Santa through this Jotform link and join us for a festive, fraud-fighting session!

Payment Systems Update is your backstage pass to upcoming changes in 2026, including instant payments expansion, ACH Rules amendments and the latest fraud monitoring guidance. The tour kicks off in March 2026, so grab your ticket to see us in person or join us virtually in April or May to keep your organization in tune with the latest in payments!