Emotionally Charged and Digitally Exposed: Why Holiday Fraud Peaks and How Businesses Can Help Detect and Mitigate It Early
During the festive season, many consumers are driven by emotional pressure, rushing to secure limited time offers like Black Friday deals, fulfil gifting expectations and make travel plans. But while spirits are high, defences can be low. This seasonal shift in behaviour creates the perfect storm for potential fraud.
In fact, fraud incidents in the UK rose by 19% to 3.9 million in the year ending September 2024, with spikes linked to high-activity periods like Black Friday and Christmas1 — a trend echoed in our Global Fraud Trends H2 2025 Report, which explores how digital identity risks are accelerating across industries.2
Notably, 13% of consumers reported falling victim to a Black Friday scam, with an average loss of £247 — underscoring how seasonal urgency can lead to costly mistakes.3
From phishing scams and fake websites that trick consumers into sending money with no goods in return to harvesting data consumers unknowingly give away, fraudsters exploit emotionally charged moments to capture consumers’ personal, account and financial details.
The data captured can be exploited to gain unauthorised access to accounts, commit identity theft or construct synthetic identities — fabricated personas that combine real and fake information. These identities are increasingly used to pursue financial or material gain, posing a growing challenge explored in our guide Hiding in Plain Sight: Unmasking Synthetic Identity Threats. The cost of these actions creates material losses for both consumers and businesses —and the impact is growing[CB1] with victims losing a combined £224 million during the festive period alone.4
The seasonal spike in fraud risk
The festive season isn’t just busy for shoppers, it’s busy for fraudsters too. With efforts fraudsters are putting into capturing consumer data, it might not be too surprising account creation is now the riskiest stage in the consumer lifecycle, with 8.3% of global attempts suspected to be fraudulent, a 26% increase year over year.5
Our new Global Fraud Trends H2 2025 Report also revealed fraud prevention leaders in the UK cited scam/authorised fraud (23%) and synthetic identity fraud (23%) as the top causes of fraud losses — followed closely by account takeover at 20%6, demonstrating just how prevalent and damaging these types of fraud can be.
Scams and phishing aren’t the only fraud threats for businesses and consumers to be wary of this quarter — 15% of consumers reported being victims of phone theft in the past year.7 This is expected to increase over the festive season as public activities like shopping, travelling and social visits ramp up.
Stolen devices can lead to credential compromise, enabling fraudsters to take over accounts or bypass security measures. Recent reports have highlighted the scale of this issue, with one stolen iPhone leading police to a gang that shipped 40,000 snatched phones overseas, and warnings already being issued urging people heading out to pubs and bars in December to be extra cautious with their devices.8
Why businesses must act now
Fraud doesn’t just impact consumers; it puts businesses at risk too. During emotionally charged periods like the festive season, urgency and distraction make it easier for fraudsters to strike and harder for businesses to maintain both security and seamless customer experiences.
As fraud attempts rise, businesses face a balancing act: protecting customers without adding friction to genuine transactions. That starts with awareness— helping consumers recognise common tactics — and continues with action. Businesses need to build in smart, layered defences across the customer journey to help spot threats early and reduce possible losses.
Synthetic identities are a growing concern, especially during high-volume periods. These aren’t just stolen details; they’re constructed profiles designed to slip through traditional checks. Tackling this kind of fraud means going beyond surface-level verification. It requires technologies that can detect deepfakes, flag unusual device behaviour and link identity signals across email, mobile and credit history.9
Solutions like Document Verification and Facial Biometrics and Device Risk are key to strengthening identity checks and spotting fraudulent attempts before they cause harm. TruValidate’s multi-layered approach brings these capabilities together, helping businesses detect threats in real time, reduce false positives and allow genuine customers to move through the journey without unnecessary friction.
Final thought
The festive season should be a time of celebration, not compromised data. Yet, as fraudsters continue to exploit urgency and emotion, businesses must respond with clarity, empathy and resilience.
By helping consumers stay alert and embedding smarter fraud prevention across the customer journey, organisations can help protect both people and revenue. With the right tools and insights, businesses can stay ahead of evolving threats and deliver secure, seamless experiences that build trust even in the most vulnerable moments.
Download TransUnion’s guide Hiding in Plain Sight: Unmasking Synthetic Identity Threats to uncover how synthetic identities operate and learn actionable strategies to detect and prevent them — especially during high-risk periods like the festive season.
1 National Crime Agency. Fraud and Cyber Crime Trends in the UK. Annual Intelligence Brief. Q3 2024.
2 TransUnion. (2025). Global Fraud Trends H2 2025. TransUnion International UK Limited.
3 7 TransUnion UK Consumer Fraud Survey, conducted by OnePoll, October 2025. Sample size: 2,000 UK adults, nationally representative by age, gender, and region.
4 Action Fraud. 12 Frauds of Christmas Campaign. Festive Fraud Losses Report. Q4 2024.
5 TransUnion global intelligence network
6 TransUnion business survey
7 BBC News. One iPhone led police to gang who sent 40,000 snatched phones to China. Available at: https://www.bbc.co.uk/news/world-asia-china-63725812
8 TransUnion. Hiding in Plain Sight: Unmasking Synthetic Identity Threats. Synthetic Fraud Guide. Q2 2025
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