Top Fraud & Identity-Theft Risks During the Festive Season (and How Lenders Can Prevent Them)

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Top Fraud & Identity-Theft Risks During the Festive Season (and How Lenders Can Prevent Them)

The festive season is the busiest time of the year, not only for retailers and lenders but also for fraudsters. As consumer spending spikes and people rush to finalise year-end loans, criminals take advantage of the heightened activity, relaxed vigilance, and increased online transactions. For lenders, this period brings a sharp rise in fraud attempts, identity theft, synthetic ID applications, and account takeovers.

Understanding these risks and implementing strong preventative measures is crucial for lenders who want to protect their customers, reduce losses, and maintain compliance.


1. Increased Identity Theft Through Stolen Personal Data

During the festive period, phishing scams, smishing (SMS fraud), and fraudulent social media ads become more common. Criminals trick consumers into sharing:

  • ID numbers
  • Bank login details
  • Payslips
  • One-time PINs (OTPs)

Fraudsters then use this information to apply for loans in the victim’s name.

Prevention Tips for Lenders

  • Use real-time identity verification tools
  • Detect mismatched ID and profile information via automated checks
  • Implement device fingerprinting or IP monitoring to detect suspicious behaviour
  • Flag applications coming from unusual geographic locations.

2. Synthetic Identity Fraud Spikes Over the Festive Months

Synthetic fraud remains one of the fastest-growing risks in South Africa. Criminals combine real and fake information, such as a legitimate ID number with fabricated contact details to create a new “person” who looks legitimate on paper.
The festive season worsens this because lenders experience:

  • Higher application volumes
  • Faster approval pressure
  • Reduced staff availability

These conditions allow fraudulent applications to slip through the cracks.

Prevention Tips for Lenders

  • Use credit bureau validation to detect inconsistent or thin files.
  • Employ AI/ML fraud modelling to flag suspicious patterns.
  • Verify employer and income sources through automated income verification (avoid relying on manual payslips alone).
  • Cross-check address and contact details against historical patterns.

3. Account Takeovers & Loan Top-Up Fraud

Fraudsters can gain access to a legitimate user’s online portal or mobile app through leaked passwords or phishing schemes. Once inside, they request:

  • Loan top-ups
  • Changes to account details
  • New disbursement bank accounts

This type of fraud can remain undetected until a customer reports it—often too late.

Prevention Tips for Lenders

  • Require multi-factor authentication for any profile or bank account changes.
  • Monitor rapid changes to personal information (email, mobile number, banking details).
  • Use behavioural biometrics (typing speed, mouse movement, device usage).
  • Notify customers immediately of any account modification attempts.

4. Fake Employers & Fabricated Payslips

Because lenders are busy, fraudsters exploit the season by submitting high-quality fake documents. The most common include:

  • Photoshopped payslips
  • Fake proof of address
  • Fabricated employment letters
  • Temporary phone numbers posing as HR verification lines

Prevention Tips for Lenders

  • Implement automated document analysis to detect tampering.
  • Use direct employer verification via trusted payroll data sources.
  • Validate banking activity to ensure the salary matches the claimed employer.
  • Flag applicants who cannot provide verifiable digital trails.

5. Social Engineering Targeting Call Centres

Call-centre fraud spikes during the festive season as criminals impersonate customers to:

  • Request account access
  • Change contact details
  • Apply for loans telephonically

Because staff are often temporary hires or under pressure, errors are more common.

Prevention Tips for Lenders

  • Enforce strict caller authentication protocols.
  • Use AI-driven call analysis for suspicious behaviour.
  • Train seasonal staff on social-engineering red flags.
  • Never change any account details without multi-step verification.

6. Debit Order & Repayment Fraud

Fraudsters increasingly use the festive season to commit repayment and debit order manipulation, including:

  • Submitting fake bank confirmation letters
  • Opening temporary bank accounts
  • Attempting reversal fraud (disputing legitimate debit orders)

Prevention Tips for Lenders

  • Match account ownership using real-time bank verification.
  • Track reversal behaviour and flag high-risk applicants.
  • Use NAEDO/DebiCheck solutions to secure authorisation.
  • Implement predictive analytics for unusual repayment patterns.

How ACPAS Helps Lenders Stay Protected

ACPAS offers lenders industry-leading tools to detect and prevent festive-season fraud, including:

  • Automated identity verification
  • Built-in affordability and bureau checks
  • AI-powered fraud detection
  • Document verification and tampering alerts
  • Real-time bank and salary validation
  • Comprehensive audit trails
  • Automated workflows for high-risk applications

With the right systems in place, lenders can maintain strong compliance, protect customers, and significantly reduce fraud exposure—without slowing down approvals.


The festive season brings opportunity for both lenders and fraudsters. By understanding the most common risks and investing in strong verification and fraud-prevention tools, lenders can confidently navigate the high-volume holiday period and safeguard their portfolios.


Contact ACPAS today to find out more about our LMS and how we can keep you safe and jolly this festive season.

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