As the holiday shopping season nears, fraud experts warn that scammers are stepping up their efforts. Larry Zelvin, who leads the financial crimes unit at BMO Financial Group, says advances in technology—especially artificial intelligence—are making scams harder to spot. “Fraud risk is constant year-round, but the holiday period brings a surge in activity. Retailers earn the most during this season, and criminals follow the money,” Zelvin explains.
New digital scams surge during peak shopping
Fraudsters are increasingly using sophisticated digital tools to trick shoppers. AI-generated content is now used to build convincing fake retailer websites, create phishing emails and produce deepfake videos that impersonate brands or influencers. These fake sites and messages can be highly realistic, making it harder for consumers to tell the difference at a glance.
QR-code attacks are also on the rise. Scammers embed malicious links in QR codes placed in ads, posters or social posts. Because the link is hidden behind the small QR image, people often scan first and worry later. Once scanned, a QR code can redirect a phone to a fraudulent checkout page or to malware.
Other growing threats include counterfeit goods sold through online marketplaces and social shopping channels, such as TikTok Shop, and “digital pickpocketing,” where criminals use contactless skimming devices to capture payment data from phones or cards in crowded areas. These incidents often occur in transit hubs or busy retail centers where crowds create cover for thieves. “Where it used to be someone stealing your wallet, now they’re targeting the information on your phone,” Zelvin says.
Zelvin points to rising fraud trends over recent peak shopping seasons: last year, 2.6% of online transactions in Canada between Thanksgiving and Cyber Monday were flagged as fraudulent—a 51% increase from the prior year. He also notes that older Canadians are disproportionately targeted, making it important for family members and caregivers to discuss scam awareness with vulnerable loved ones.
Despite the risks, most Canadians still plan to take part in year‑end shopping events. A Boston Consulting Group report found that about 77% of Canadian consumers intend to hunt for deals during Black Friday and Cyber Monday, a modest decline of six percentage points from the previous year. The same report estimated average planned spending at approximately US$305 for year-end sales events, reflecting a cautious but continued appetite for seasonal deals.
How to avoid scams this season
There are practical steps shoppers can take to reduce the chance of becoming a victim. Start by avoiding links in unsolicited emails, texts or social messages. Instead of clicking, type the retailer’s known web address directly into your browser or use a verified app. Before entering payment details, look for HTTPS and the padlock icon in your browser’s address bar to confirm the site uses encryption.
Prefer credit cards over debit cards, gift cards or instant payment methods when making online purchases. Credit cards typically offer stronger consumer protections and easier dispute processes if fraud occurs. Zelvin warns that payments sent via instant transfer apps, wires, or cryptocurrency are often irreversible—once the money is gone, recovery can be difficult or impossible.
Be cautious with “limited time offers” that pressure you to act quickly. Scammers use urgency to stop shoppers from pausing and verifying details. Research any unfamiliar seller: read reviews, check for consistent contact information and confirm return policies. The time you spend checking a vendor now is far less than the effort required to resolve a high-value fraud incident later.
Finally, slow down before sharing financial information. A measured approach—questioning unexpected messages, verifying offers and confirming payment channels—reduces risk. “You don’t have to be afraid, but be more critical,” Zelvin advises. Thoughtful skepticism combined with simple security habits can keep your holiday shopping both enjoyable and safe.
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