The holiday season brings joy, celebration and a surge in online shopping. But as consumers hunt for thoughtful gifts, the latest tech, and the best deals, scammers are also busy — making Black Friday and Christmas one of the riskiest times for fraud. And
with digital commerce booming, the threat landscape is evolving faster than ever before.
To understand how banks and holiday shoppers can protect themselves, Finextra spoke to Laura Quevedo, executive vice president, Fraud and Decisioning Solutions at Mastercard. Quevedo shared Mastercard’s latest
research, practical strategies for
issuers and actionable tips for consumers to spot scam merchants this season.
Authorised merchandise scams on the rise
Quevedo explained that Mastercard has observed shifting patterns as threat actors move from card phishing to e-commerce scams. Since e-commerce drives more online shopping during the holidays, fraudsters are adapting their techniques, from scam adverts to
fraudulent websites, to capitalise on consumer demand for a quick deal.
“Holiday shopping scams are evolving rapidly thanks to advancements in technology and global criminal networks,” said Quevedo, who leads a global business within Mastercard innovating to anticipate and stop new cybercrime fraud trends. “Scammers have become
more sophisticated, tapping AI to create text messages, advertising, and even websites that look just like the real thing. So convincing are these websites that it can be difficult to spot a fake deal.”
To steal card credentials, fraudsters set up phony merchant accounts and fake websites to sell non-existent or poor-quality goods to unsuspecting consumers in what Quevedo calls authorised merchandise scams. Bad actors then use those credentials to further
their schemes, potentially even selling the information on the dark web.
This creates an environment where scams can flourish, especially as many consumers — on the hunt for the best deal — let their guard down and overlook basic security precautions while shopping online.
According to Mastercard’s
research:
- 72% percent of shoppers buy from unfamiliar websites during the holiday season;
- 25% doing little to no research before buying from a new site; and
- nearly half (48%) of consumers admit they are likely to ignore security warnings if the item is deeply discounted.
These behaviours put shoppers at greater risk of falling victim to scams. “Scammers know the holidays are a time when people are distracted, rushed, and spending more than usual,” Quevedo said. “They capitalise on that urgency to steal your credentials and
your money; whether through fake deals, spoofed delivery notices, or fraudulent charities.”
Given these trends, it's more important than ever for financial institutions and consumers to be vigilant.
How banks can minimise losses and protect holiday shoppers
Banks can strengthen their scam prevention tools and reduce losses with targeted strategies. While some fraud types, such as investment scams, are increasingly complex and require significant investigation as well as direct engagement with the consumer;
many shopping scams are high volume, low value attacks that can be detected using automated tools.
AI-powered real-time monitoring allows financial institutions to identify payments to fraudsters and stop them before money is lost. The effectiveness of such cutting-edge technologies, combined with national programs focused on consumer education, can be
observed in markets like Australia, which, in October 2025, reported a
26% reduction in scam losses after banks adopted voluntary standards.
Yet no organisation can stop fraud by itself. Industry collaboration and data sharing are becoming crucial in the fight against (holiday) scams. “Network-level technologies have shown strong results,” Quevedo emphasised. “For instance, in the UK, Mastercard
has visibility of real-time payment rails, allowing us to analyse over 95% of all UK real-time payments.”
She highlighted the necessity of using fraud risk solutions that can scan multiple transaction data points to provide a risk-score in real time, giving both sending and receiving banks the insights needed to stop scams in their tracks.
“Deploying cutting-edge technologies; arming businesses, acquirers and issuers with best practices; investing in public-private partnerships; and empowering consumers through education are the four cornerstones of our approach to scam prevention and reduction,”
Quevedo continued. “You need to work across the ecosystem to protect consumers when they’re most vulnerable.”
Five consumer tips for safe holiday shopping
Since authorised merchandise scams coerce consumers into sending money in good faith or paying for goods they think are genuine requires no security breach or hack, consumer education is a crucial aspect of any scam prevention strategy.
To further empower consumers, Mastercard launched the “Anatomy of a Scam” documentary series, which explores real-life scenarios, expert insights and practical advice for spotting and avoiding fraud. Quevedo highlighted that sharing these stories is designed
to help consumers recognise red flags and make sage choices.
Quevedo offered five tips to help consumers and the broader industry to recognise scam merchants:
- Scan with care this season: QR codes and flashy ads with enticing 'low' prices aren’t always gifts. Sometimes they’re malware or fake sites that await you unwittingly entering your credit card information.
- Update before you celebrate: Your device is your most reliable shopping tool – make sure it has the latest software updates to protect against evolving threats.
- Check twice for fake delivery alerts: Not every 'out for delivery' message is authentic. When in doubt, contact the company using official channels.
- Give back with confidence: Research charities before donating to ensure your money goes to a reputable cause.
- Be cautious with CAPTCHA: Ignore CAPTCHA challenges that ask for downloads or personal info. Real CAPTCHAs will only want a simple click or ask you to pick an image.
Outpacing the threat
As the festive shopping season is upon us, it’s critical to double down on cross-sector collaboration both regionally and globally. No single entity can solve fraud alone. Collaboration, technology, and education will enable financial institutions to outpace
the threat and restore trust.
“Financial institutions, telcos, social media platforms, and public and private entities must work together to outpace the bad guys,” Quevedo concluded.
Consumers have a role to play too. “Pause before you click, verify before you buy, and never let a ‘too-good-to-be-true' deal cloud your judgement.
This holiday season isn’t just about protecting your wallet; it's about safeguarding your peace of mind.”