Warning: As Holiday Spending Surges, So Will Fraud

With scammers looking to take advantage of consumers from all angles, new AARP survey research reveals that people need to be vigilant this holiday season as they buy gifts, book their travel arrangements, and donate to charities.

According to a recent national survey of nearly 1,900 U.S. adults, more than three-quarters (82 percent) have encountered some kind of fraudulent activity — from encountering a deceptive advertisement to receiving a fake shipment notice or request from a fraudulent charity.

Online vulnerability

Facing countless scams, many Americans become victims. And disturbingly, knowledge of safe online shopping practices has dropped. Nearly half (44 percent) of U.S. adults bought something through an ad on their social media feed, up from 38 percent in the 2023 survey, and 35 percent report being the victim of fraud from such a purchase.

When shopping online, just 56 percent of respondents know that a credit card is the safest way to go, the survey reveals. Other payment methods don’t have the same consumer protections. While 64 percent of adults plan to use a credit card for online purchases others will pay for holiday purchases with cash (75 percent), peer-to-peer payment apps (31 percent) and personal checks (15 percent).

Peer-to-peer apps including Cash App, Venmo and Zelle are gaining popularity. More than two-thirds of adults (70 percent) say they have used one, compared to 59 percent in 2021. They are a bigger hit among younger consumers: 90 percent of 18–34-year-olds use the apps, compared to 82 percent of those ages 35–44, 64 percent among those ages 45–64, and just 33 percent among those in the 65-plus age group.

Shipping and gift card scams

Regardless of race or age, AARP reports that trouble is on the rise concerning notice-of -shipping issues that turn out to be fraudulent. This year’s survey showed that 56 percent of respondents were affected by this scam, compared to 53 percent last year and 29 percent in 2022.

Another rising concern: packages being snatched from doorsteps. This has happened to about 4 in 10 adults who live in urban areas and 3 in 10 in the suburbs, according to the survey. That’s particularly notable, given that about half of consumers say they will rely on package delivery this season.

Gift cards are often seen as a simple solution for hard-to-buy-for friends and family, but they can be fraught too—even those bought at the store.

Scammers can tamper with gift cards on store racks, recording the gift card number and stealing the funds when the card is activated. This season, 69 percent of Americans plan to buy gift cards (up from 59 percent last year). Despite the risk of buying in a retail store, 60 percent of respondents intend to purchase them there. Criminals can also hack into electronically purchased cards to drain them without touching the cards.

It's a growing problem. Nearly one-third (30 percent) of adults surveyed report either giving or getting a gift card with no balance, compared to 21 percent in 2021. But not all hope is lost — two-thirds of those affected by no-balance gift cards worked with retailers or card issuers to get at least some of the funds restored. Still, 45 percent of respondents indicate they plan to buy about the same amount of gift cards this holiday season compared to last year, while 11 percent will buy more and 13 percent say they will buy fewer.

Travel and charity scams

When it comes to charitable giving, 55 percent of respondents report donating money in the past year. While 35 percent say they get seemingly fake requests, 6 in 10 Americans acknowledge they don’t always research an organization before contributing.

AARP also finds fraud in the travel arena, another big holiday spending area, remains prevalent —with younger consumers more likely to be affected than older adults. When experiencing this kind of fraud, 23 percent of respondents say they reached out to a specific hotel, airline or rental company to get a resolution, 20 percent turned to the police, 18 percent went to their credit card company, and 5 percent reported not seeking any assistance.

A call for action

Frustrated with the various forms of theft, the vast majority (90 percent) of U.S. consumers age 18-plus across the political spectrum believe lawmakers need to do more to protect the public from fraud.

Methodology

Findings were based on a phone and online survey in August and September of 2024 of 1,869 U.S. consumers 18 or older who use the internet and planned to shop for the holidays. The national sample was weighted by age, gender, and census division.

For more information, please contact Jennifer Sauer at jsauer@aarp.org. For media inquiries, contact External Relations at media@aarp.org.