As identity fraud surges ahead of holidays, Allstate issues new guidance to protect shoppers
Main points:
- October kicks off identity theft season, with fraudulent credit and loan applications reaching their highest levels all year.
- Fraudulent applications accounted for nearly 70% of all identity theft cases reported by AIP; new account fraud caused the largest financial losses, totaling more than $7.3 million.
- Allstate’s identity recovery experts help victims restore their identity, credit and financial standing for up to $25,000 in qualified expenses.
Northbrook, IL, October 27, 2025 – Identity theft is increasing earlier than expected. New data from Allstate Identity Protection1 It showed a sharp rise in fraudulent account activity in October, exceeding that in November and December. This surge coincides with early holiday shopping and digital promotions, putting consumers at greater financial risk.
In October 2024 alone, Allstate helped prevent more than $9 million in potential losses related to fraudulent applications and new account scams. Fraudulent applications account for nearly 70% of all cases, and new account fraud poses the greatest financial threat, with losses estimated at more than $7.3 million.
The data also shows a seasonal surge in employment-related scams, as scammers target job seekers with false job postings and salary plans. Allstate urges consumers to remain vigilant as scammers continue to evolve their tactics, taking advantage of the urgency and distraction of peak shopping periods.
“Scammers know shoppers are racing against the clock and clicking quickly,” said Caroline Slane, vice president of business operations at Allstate Identity Protection. “We help people get back on their feet, but the best way to shop wisely is to slow down and be skeptical.”
While fraud activity peaks in October, November and December are expected to remain high-risk months. Even as case numbers drop, financial risks rise, suggesting fraud attempts are more sophisticated or high-value as the holidays approach.
What scams should holiday shoppers know about this year?
Slane says these are the most aggressive scams targeting holiday shoppers this season:
- Fake online retail store created using artificial intelligence Mimicking legitimate retailers, offering deep discounts and stealing brands.
- TikTok store scam Involving counterfeit products, phishing messages from fake sellers, and fake influencer accounts.
- Phishing and SMS attacks Scammers impersonate retailers, delivery services, or customer service representatives and ask for login or payment information.
- Package delivery scam Comes with false notifications to trick users into clicking on malicious links or entering personal information.
How can consumers ensure safety when shopping online?
Allstate’s Shopping Smart and Avoiding Scams Cheat Sheet offers the latest advice this holiday season.
“Use a credit card, track your purchases and delete anything suspicious,” Slane says. “No agreement is worth the risk.”
What are the dangers of buying through third-party platforms and second-hand markets?
Slane warned that there are hidden risks in markets and second-hand platforms, especially during the holidays.
- Sellers may not be subject to the same stringent verification or regulation as traditional e-commerce platforms.
- Return policies, refunds and dispute resolution may be less than robust or difficult to operate.
- If a platform lacks strong encryption or fraud detection, payment security may be compromised.
What tools does Allstate offer to prevent identity theft?
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Editor’s note:
Data based on identity recovery and threat cases reported by U.S. Allstate Identity Protection customers from January 1 to December 31, 2024. Figures quoted represent actual and potential savings. real dollars Reflect financial losses from successful acquisition and use by bad actors, such as charges from fraudulent loans or stolen credit cards. potential dollars Represents the remaining financial risk associated with fraud, such as the unused portion of a credit limit that bad actors still have access to. The analysis aims to raise awareness of the financial impact of identity theft and the importance of proactive protection during high-risk times such as the holidays.
About Allstate
Allstate Corporation (NYSE: ALL ) protects people from life’s uncertainties with affordable, simple and connected coverage. car, home, electronic equipment, and identity. Products are available through an extensive distribution network, including Allstate dealers, independent dealers, major retailers, online and in the workplace. Allstate has more than 208 million policies in effect and is widely known for its slogan, “Allstate delivers.” For more information, please visit www.allstate.com.
1Data based on identity recovery and threat cases reported by U.S. Allstate Identity Protection customers from January 1 to December 31, 2024.
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