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Cyber Fraud Takes a Holiday: What You Need to Know
The landscape of holiday fraud in 2025 is not just evolving; it is transforming at breakneck speed. As we approach this year's holiday season, attackers are leveraging AI, automation, and stolen data to orchestrate sophisticated campaigns that blur the lines between human and bot activity. According to KasadaIQ's data, malicious activities are already on the rise, with fraudsters hitting the ground running — much earlier than previous years.
The New Normal: Earlier and More Aggressive Fraud Campaigns
Gone are the days when fraudsters would wait for Black Friday to launch their schemes. KasadaIQ has reported a staggering 92% increase in malicious configurations specifically targeting retail industries this year alone. Between January and October 2025, attackers have begun their operations as early as ten days before major shopping events, allowing for extensive testing and preparation. Organizations relying on heightened monitoring only during Thanksgiving week are likely to miss these critical preparatory attacks.
Account Takeover: A Growing Threat
Account takeover (ATO) has emerged as the fastest-growing channel for fraud this holiday season. Kasada's telemetry reveals over 311 million stolen accounts for sale on dark web marketplaces, with 63% belonging to retail brands. Credential stuffing, where attackers capitalize on stolen credentials to access consumer accounts, is particularly prevalent during this peak period — especially in the week leading up to Black Friday. Security teams need to understand that ATO is an ongoing intelligence-driven threat, not merely an isolated event.
Gift Cards: The Currency of Choice for Fraudsters
This holiday season, fraudsters are turning increasingly toward gift cards as their monetization tool of choice. Kasada identified a considerable cache of 8.9 million stolen retail cards and 7.5 million QSR cards, highlighting the anonymous and fast nature of gift card fraud. Security teams must be vigilant monitoring for unusual redemption patterns, especially in the lead-up to and following major shopping events.
AI Bots Take Center Stage: What Retailers Can Expect
2025 will witness a significant increase in AI-powered bots dominating online shopping traffic. Kasada predicts a jaw-dropping 520% increase in AI-driven requests compared to last year. These sophisticated bots act so much like human shoppers that they will easily evade traditional fraud detection systems. Retailers must prepare for this paradigm shift by adapting their security mechanisms to defend against the rising tide of AI-manipulated requests.
Preparing for a New Age of Fraud
Facing the 2025 holiday season, organizations must prepare for an unprecedented confluence of legitimate traffic and sophisticated fraud tactics. Adjusting fraud readiness timelines, enhancing monitoring efforts, and integrating fraud analytics with security operations are crucial steps. Only those that proactively adapt will survive the influx of AI-augmented fraud this holiday season.
In this transforming landscape, it's essential for retailers to think innovatively while staying vigilant against emerging threats. Strengthening defenses against AI-driven and traditional fraud is not just prudent; it’s essential for maintaining consumer trust and safeguarding revenue.
Take Action! Don’t Let Fraud Ruin Your Holidays
The chaos of the holiday season shouldn’t come at the cost of security. With the stakes higher than ever, businesses must start monitoring earlier, focusing on comprehensive account integrity, and ensuring robust API defenses. Stay ahead of the fraudsters who are clearly getting more advanced. Protect your business and customers — begin preparations today!
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