Why Attempted Fraud Increases After the Holidays and What to Do About It

The weeks following the holiday season consistently see a surge in attempted fraud. While many consumers and businesses are focused on returning gifts, reconciling expenses, and resetting budgets for the new year, fraudsters are taking advantage of distraction, data exposure, and financial strain.

Understanding why post-holiday fraud spikes—and knowing how to respond—can help both individuals and organizations reduce risk during one of the most vulnerable times of the year.

5 Reasons Why Attempted Fraud Spikes After the Holidays

1. A Flood of Financial Activity Creates Noise

The holiday season generates an unusually high volume of transactions. This isn’t limited to online and in-store product purchases. It also includes gift cards, travel bookings, subscriptions, and charitable donations. In January, that activity continues with returns, exchanges, refunds, and charge adjustments. This “transaction noise” makes it easier for fraudulent charges to go unnoticed, especially small ones that blend in with legitimate spending.

2. Stolen Data Is Put to Work

Many data breaches and card skimming operations occur during peak shopping months. Stolen credit card numbers, account credentials, and personal information are often tested or sold weeks later.

By January and February, fraudsters are actively testing compromised cards with small purchases. They may attempt account takeovers using reused passwords. And, they’ll exploit weakened authentication on older or unused accounts.

3. Gift Cards and New Devices Are Easy Targets

Gift cards are a favorite tool for fraudsters because they are difficult to trace, easily resold, and often unprotected once the code is compromised. Similarly, new phones, tablets, and laptops may not yet have updated security settings, making them vulnerable to phishing, malware, or credential theft.

4. Financial Stress Leads to Risky Behavior

After holiday spending, many people are more receptive to scams posed as helpful or a good deal. These scams may include “Too good to be true” offers or fake debt relief or tax refund schemes.

In a state of financial stress, people are more likely to panic over (and believe) phishing messages about sensitive accounts. These messages appear urgent, claiming account problems or missed payments. Fraudsters rely on emotional pressure—fear, urgency, or embarrassment—to prompt quick action without verification.

5. Businesses Shift Focus and Fraud Slips Through

For businesses, January often brings operational changes like new staff, new budgets, updated vendors, or revised workflows. Fraud prevention may temporarily take a back seat during these transitions. Common post-holiday business fraud attempts include fake vendor invoice scams, payroll or direct deposit changes, or account takeover attempts targeting customer portals.

Common Types of Post-Holiday Attempted Fraud

To protect yourself, be aware of some of the most common types of post-holiday fraud attempts:

• Compromised holiday transactions can lead to credit card fraud.
• Phishing emails and texts pose as retailers, delivery services, or banks.
• Leaked or reused passwords can be used in account takeover attempts.
• Refund and return fraud target retail systems.
• Gift card balances can be stolen.

While these sound threatening, and are quite damaging when successful, there are some things you can do to reduce your risk whether you’re an individual or business. 

What You Can Do to Reduce Attempted Fraud Risk

Individuals

As an individual, you should review your bank and credit card statements carefully. Look for small or unfamiliar charges, not just large ones.

Change your passwords after the holidays, especially for financial accounts, email, and shopping platforms.

Enable multi-factor authentication (MFA). This is one of the most effective defenses against account takeover.

Be skeptical of urgent messages. Remember that legitimate companies rarely demand immediate action via text or email.

Register and monitor gift cards, use them quickly, and check balances regularly.

Businesses

As a business, there are a few steps you should take to ensure that your own accounts and those of your clients and customers remain safe and secure. 

First, increase transaction monitoring in the first quarter (Q1). Don’t let fraud prevention practices take a backseat to other new year priorities. January through March is a high-risk period, so adjust thresholds accordingly.

Audit access controls and permissions. Don’t forget to remove unnecessary access after seasonal staffing changes.

Train employees on social engineering tactics. Fraud attempts often target accounting, HR, and customer support teams, so be sure employees know what signs to look for and what action to take in questionable situations.

Furthermore, verify changes through secondary channels. Especially for payment instructions, banking updates, or refunds, make sure you check multiple sources.

It’s also a good idea to review fraud incidents from the previous year because patterns repeat. Last year’s weak points become this year’s targets.

Tools You Can Use to Combat Attempted Fraud

Knowing attempted fraud risks is only half the battle. Preventing post-holiday fraud requires the right tools to verify identities, validate data, and flag suspicious activity early. Both individuals and businesses can benefit from services that add verification and monitoring layers without adding unnecessary friction.

Tools for Individuals

Credit Monitoring and Alerts

Credit bureaus and financial institutions offer free or low-cost alerts that notify users of new accounts, inquiries, or significant changes.

Password Managers

Password managers reduce the risk of credential reuse which is one of the most common causes of account takeovers after the holidays.

Identity Monitoring Services

Identity monitoring services can help detect the use of personal information across public records and databases sooner than you might recognize it yourself.

Tools for Businesses

Businesses—especially those handling payments, customer accounts, or sensitive data—need scalable verification and fraud-prevention tools. Searchbug can help.

Searchbug offers a suite of identity verification, background data, and fraud prevention tools that help businesses confirm who they’re dealing with before fraud escalates. These tools are especially valuable during high-risk periods like the post-holiday season.

Here are some ways businesses use Searchbug services:

Customer Identity Verification

A people search API helps validate names, addresses, phone numbers, and emails to reduce fake account creation and account takeover attempts. The service allows you to instantly look up names, phone numbers, email addresses, and mailing addresses to validate leads, enhance customer profiles, and reduce fraud.

Address and Phone Validation

Validating addresses and phone numbers helps you confirm that billing and shipping information matches known records. This can help reduce refunds and prevent chargeback fraud. 

People Search and Other Lookup Tools

People search and other lookup tools allow you to verify customer or vendor information when something doesn’t quite add up. Confirm vendor legitimacy to help prevent invoice fraud, fake suppliers, or payment diversion schemes. You don’t have to rely solely on self-reported data.

Turning Awareness into Prevention

Post-holiday fraud isn’t random—it’s predictable. Fraudsters know when defenses are down and attention is divided. By anticipating spikes and taking proactive steps, both individuals and organizations can significantly reduce exposure.

The new year is an ideal time not just for financial resolutions, but for strengthening fraud prevention habits that last all year long.

Post-holiday fraud prevention doesn’t require reinventing your systems; it simply requires reinforcing them. Adding verification tools, increasing monitoring during Q1, and empowering teams with reliable data can dramatically reduce fraud exposure.

For individuals, fraud prevention may mean better alerts and stronger account security. For businesses, it means pairing internal controls with external verification tools to catch fraud before it becomes costly. People search and other monitoring tools can help. Register for a free, no-obligation API test account and try it today!