Share these fraud prevention tips with your customers and members
According to a 2025 study by J.D. Power, 61% of consumers are concerned about fraud during the holiday season. Nearly one in three Americans reported financial fraud within the past year, making proactive communication more critical than ever.
Financial institutions have a prime opportunity to help by offering guidance and educating their customers on making safer choices. Here are three holiday fraud prevention tips institutions should share with clients, along with steps to take if fraud occurs.
- Choose credit over debit and turn on transaction alerts
One of the easiest ways to reduce fraud risk is to use a credit card instead of a debit card for purchases. Credit cards typically offer stronger consumer protection, and unlike a debit card, they don’t allow fraudsters to access funds from a checking account immediately.
Encourage clients to take it a step further by enabling real-time alerts via text or email. These notifications help account holders identify unfamiliar charges promptly and take action before further damage is incurred.
- Shop smart online and stay cautious with Wi-Fi
Online shopping is convenient, but it’s also where many fraud attempts originate. Financial institutions can support holiday fraud prevention efforts by reminding clients about online safety:
- Shop only on secure websites (look for “https://” and the padlock icon).
- Avoid entering sensitive data on public Wi-Fi networks.
- Be skeptical of social media ads or “too good to be true” deals.
This time of year also sees an uptick in phishing messages posing as delivery notices or retailer updates. Advise clients not to click on links in emails or text messages, especially those urging immediate action. Instead, recommend visiting official sites directly or using apps from known retailers.
When purchasing gift cards, it’s best to buy directly from the source. Fraudsters know how to compromise cards on public racks, leaving buyers with a $0 balance.
- Watch transactions, secure passwords, and protect physical cards
Remind clients that fraud doesn’t always come in large amounts. Criminals often test stolen data with small charges first. Checking account activity regularly, especially during the holidays, is a powerful line of defense.
Other critical reminders:
- Use strong, unique passwords for banking and payment apps.
- Turn on multi-factor authentication (MFA) for added security where available.
- Shield PINs at checkout and stay alert for skimming devices at ATMs and card readers.
- Keep wallets and purses secure, especially in crowded stores or public transit, where distractions and tight spaces can make it easier for pickpockets or card scanners to access personal and financial information without detection.
