Store shelves are stocked with Santas, seasonal sweets and, of course, sales. With Black Friday and Cyber Monday inching closer, consumers are eager to score big ahead of the Christmas sprint.
While there are many amazing, legitimate discounts and deals to jump on, this is a prime time for scams. The bustle and excitement can trigger impulse shopping more than ever.
As a result, cybersecurity specialists are urging shoppers to stay vigilant.
Larry Zelvin, head of the financial crimes unit at BMO Financial Group, spoke on this, saying:
“The risks are ever-present every day all year long, but when it comes to this time of the year, ‘tis the season to steal even more. Retailers are making more money this time of year than any other, so the fraudsters are all over it as well.”
AI scams, deepfakes & fake websites
One of the fastest-growing threats this season is AI-powered fraud. Criminals can whip up convincing fake retailer websites, send out phishing emails that appear authentic, and produce deepfake videos impersonating brands or popular influencers.
QR codes have also become a surprisingly effective tool for scammers. Fraudsters can embed malicious links into codes posted in stores or online, taking advantage of consumer trust. Also, inspecting the link and running a security check on it isn’t as immediately accessible from a QR code.
“When you scan that QR code, there really is a URL or a website link, but people don’t look at it because it’s small,” he said.
Other schemes Zelvin flagged include counterfeit products circulating on TikTok Shop and a spike in “digital pickpocketing.”
This is where criminals use contactless payment devices to skim information from nearby phones. These incidents typically occur in crowded public spaces such as malls and transit systems.
“Where it used to be somebody stealing your wallet or your purse, now they’re stealing what’s on your phone,” he said.
Climbing fraud rates
Fraud attempts are expected to continue ramping up. In 2024, 2.6% of online transactions in Canada between Thanksgiving and Cyber Monday were flagged as fraudulent. This marks a 51% increase from the prior year. He also noted that older consumers remain disproportionately targeted.
The surge in online activity during major sales events plays a big role in this trend.
Zelvin explained that holiday shoppers create a “vast increase in people online during the peak buying periods,” adding that fraudsters are “following the opportunity.”
Despite tighter budgets, Canadians still plan to shop during Black Friday and Cyber Monday. A Boston Consulting Group report found that 77% of consumers intend to participate this year — 6% less than in 2024.
Average planned spending has also decreased. Shoppers estimate they will spend US$305 on year-end sales, reflecting what the report describes as a “cautious but steady sentiment.”
Holiday scams prevention
To help consumers reduce their risk, Zelvin recommended a few simple but effective precautions.
First, avoid clicking links in unsolicited emails or texts — especially ones boasting deals that seem too good to be true. Instead, type retailer URLs directly into your browser and check that the site uses HTTPS security protocols.
He also emphasized the importance of choosing the right payment method.
“Credit cards are a good way to pay just because they are not fast-moving, but instant payment systems, wires, gift cards, some of these payment apps, and cryptocurrency — that money is gone,” Zelvin said.
Other strategies include:
- Researching unfamiliar sellers
- Skepticism towards limited-time offers
- Use of AI in ads and promotions
“The work you will do at the front will be far less than what you would have to do on the back if all of a sudden you have a high dollar amount, or multiple incident fraud,” he said.
Slow down
Ultimately, the best defence is adopting a mindset of healthy caution. Make choices with intention, use impulse control and delay your reaction. Hastiness, emotional reactivity and adrenaline rushes are what scammers feed off of.
“You don’t have to be afraid, you just have to be more critical,” Zevlin said.
As the holiday rush launches, take a few extra seconds to verify what’s on your screen could be the most valuable gift you give yourself.
For more stories like this, click here.
