News

Texas State Securities Board Urges Texans to Stay Vigilant: Don’t let Fraudsters Ruin Your Holidays

By: Texas State Securities Board

| Published 12/07/2025

THE WOODLANDS, TX – As the holiday season kicks off, the Texas State Securities Board wants to caution Texans — investment scams and financial fraud increase during this season.

Increases in online shopping, social media advertising, charitable donations, financial transactions using P2P platforms like Venmo and Zelle, and consumer distraction provide advantageous vulnerabilities for fraudsters.

So what can you do to make sure you’re not a target? Here are some tips.

Be a smart shopper. Avoid clicking unknown links to merchants and always navigate yourself to the official website directly and buy only from well-established, verified, reputable merchants. Research sellers and look for reviews before making any purchase and always double-check the website’s URL to make sure it is legitimate and secure as scammers often promote fake products or services on social media or through paid ads. If you do shop online and have a credit card: use it. Most credit cards provide fraud protection and offer zero liability for unauthorized transactions.
Be a smart donor. Charitable donations increase during the holiday seasons. Individuals should be extra cautious when donating as scammers create fake charities to take advantage of people’s generosity. Research the charity, verify its tax-exempt status with the IRS, check ratings on watchdog sites like Charity Navigator or the BBB Wise Giving Alliance, and look for transparency in the charity's finances and operations. Avoid donations via wire transfers, P2P apps, and gift cards.
Be careful of the information you share online. Don’t share personal information online. Scammers use sophisticated tactics, such as spoofing caller ID to impersonate a legitimate or trusted organization (such as your bank, a credit card merchant, or a government organization), fake identity, and location on a call to steal your identity. If you receive an alert alleging to be from a credited organization, hang up and call the organization directly using a phone number from their official website or other official channel. Do not provide any information via email, text or over the phone before verifying the alert is legitimate. And remember, you cannot trust caller ID as scammers can spoof phone numbers.
Secure your devices and accounts. Use strong passwords, enable two-factor authorization if you can, keep your software and devices updated, and if you can — use a virtual private network (VPN) for an extra layer of security. Taking these measures could make it harder for scammers to gain access to your private information.
Beware of too-good-to-be-true, limited time offer, and act now deals. Scammers often use these terms to create a sense of urgency and pressure individuals into making hasty decisions. Always take a moment to do your research and verify merchants before making any purchase or executing any transaction.

If you do fall victim to a scam. Don’t panic. Regardless of the severity of the scam, it is imperative you take immediate action as soon as you suspect you’ve been victimized. Here are steps you can take to try to mitigate the damage.

Contact the merchant. Merchants may be able to freeze the fraudulent transactions and offer to resolve the matter with you.
Contact your bank and/or credit card issuer. You should regularly check your bank and credit card statements for unauthorized transactions, especially after making online purchases. If you spot anything suspicious, report it immediately and request a chargeback.
Place a fraud alert on your credit report and consider freezing your credit. To place a fraud alert and freeze your credit, you should contact one of the three major credit bureaus — Equifax, Experian, or TransUnion. They will then be able to monitor for suspicious activity and can assist in freezing your credit to avoid further fraudulent activity.
File a complaint. File a complaint with the appropriate organization.

Investment scams also increase during this time as fraudsters take advantage of individuals’ increased online activity, end-of-year bonuses, and charitable spirit.

Be skeptical and do your research. Always ask questions and verify before you invest. Texans should confirm whether the person or firm offering the investment is properly licensed and whether the investment is registered with the Texas State Securities Board or the SEC.

Below are a list of resources investors can use verify the credential of the person or firm offering an investment:

Investor.gov: A free SEC resource for checking the background, license, and registration status of investment professionals.
BrokerCheck: A free FINRA tool for checking the registration status and disciplinary history of brokers and brokerage firms.
IAPD (Investment Adviser Public Disclosure) Website: Allows you to look up registration status for investment advisers.

Finally, watch out for these red flags of investment fraud:

Promises of unusually high returns or “guaranteed” profits with little or no risk;
Pressure to act immediately;
Pressure of missing out on the investment opportunity and claims of “once-in-a lifetime” or “can’t miss” opportunities; or
Requests for payment via suspicious methods, such as wire transfers, gift cards, payment apps, cryptocurrency, or cash.

If you believe you are a victim of an investment scam, please file an investor complaint form or contact the Enforcement Division of the Texas State Securities Board.

For more information about investing, including scams and bad investments, please visit ssb.texas.gov/investors.

Other resources:

And remember. We are always here to help. Have a safe and happy holiday season!