Identity theft is ramping up earlier than expected. New data from Allstate Identity Protection¹ shows a sharp rise in fraudulent account activity in October, surpassing November and December. The surge coincides with early holiday shopping and digital promotions, exposing consumers to increased financial risk.

In October 2024 alone, Allstate helped prevent more than $9 million in potential losses tied to fraud applications and new account scams. Fraud applications made up nearly 70% of all cases, while new account fraud posed the greatest financial threat, with estimated losses exceeding $7.3 million.

The data also reveals a seasonal spike in employment-related scams, as fraudsters target job seekers with fake postings and payroll schemes. Allstate urges consumers to stay alert as scammers evolve their tactics to exploit urgency and distraction during peak shopping periods.

"Scammers know shoppers are racing the clock and clicking fast," said Caroline Slane, vice president of business operations at Allstate Identity Protection. "We help people bounce back, but the best way to shop smart is to slow down and stay skeptical."

While scam activity peaks in October, November and December are projected to remain high-risk months. Even as case volume dips, the financial stakes rise, indicating more sophisticated or high-value fraud attempts closer to the holidays.

What scams should holiday shoppers know about this year?
These are the most aggressive scams targeting holiday shoppers this season, according to Slane:

• Fake online retail stores created using AI that mimic legitimate retailers with deep discounts and stolen branding.

• TikTok Shop scams involving counterfeit products, phishing messages from fake sellers, and impersonated influencer accounts.

• Phishing and smishing attacks where scammers pretend to be retailers, delivery services, or customer service reps asking for login or payment info.

• Package delivery scams with fake notifications that trick users into clicking malicious links or entering personal information.

How can shoppers stay safe when shopping online?
Allstate's Shop Smart and Avoid Scams cheat sheet offers the latest recommendations this holiday season.

"Use credit cards, track your purchases and delete anything suspicious," says Slane. "No deal is worth the risk."

What are the dangers of buying through third-party platforms and secondhand marketplaces?
Slane warns that marketplaces and secondhand platforms come with hidden risks, especially during the holiday season.

• Sellers may not be verified or regulated as strictly as on traditional e-commerce platforms.

• Return policies, refunds, and dispute resolution may be less robust or harder to navigate.

• Payment security may be compromised if the platform lacks strong encryption or fraud detection.

What tools does Allstate offer to protect against identity theft?
Allstate Identity Protection helps consumers stay ahead of scams with expert guidance and tools like Allstate Digital Footprint®. On average, an email account connected to Allstate's Digital Footprint is tied to more than 500 brands. If a customer's identity is compromised, Allstate's restoration specialists provide full support to help victims recover and navigate the process from start to finish. Plans start at $3/month for individuals or $6/month for families at AllstateIdentityProtection.com.