December 1, 2025
The holiday season is a time for giving, goodwill, and often, a little extra spending. Unfortunately, this festive atmosphere is also prime time for fraudsters who look to take advantage of our generosity and the general financial distraction of year-end activities. The Utah Division of Securities wants to ensure your investment portfolio and personal finances are secure throughout December. We encourage all Utah investors to be especially vigilant against common schemes that surface during the holiday rush. One of the most insidious forms of deception is affinity fraud, where scammers target members of identifiable groups by exploiting the trust that exists within them. During December, this scheme often takes on a charitable guise. A fraudster, who may even be a member of the group, will pitch a so-called “special, high-return, exclusive” investment opportunity. They often claim the profits will go to a holiday cause or serve as a great last-minute tax write-off. The urgency and the shared community connection are powerful tactics used to prevent victims from conducting the necessary due diligence. The key defense here is to separate friendship from finance; no matter who introduces the investment, you must investigate the opportunity and the person selling it. Any investment offered exclusively “just to our group” or paired with an emotional story is a red flag.
Another major threat involves the “guaranteed” quick profit schemes. With holiday bills looming in the new year, many people look for a quick financial boost, and scammers are quick to capitalize on this sentiment by promoting opportunities that are simply too good to be true. These pitches often appear on social media or in targeted emails, selling everything from cryptocurrency or NFT “pre-sales” with guaranteed returns to “penny stock picks” that promise a year-end surge. The major warning sign here is any promise of guaranteed, high returns with “zero risk.” All legitimate investments carry risk, and that guarantee is the clearest indication of a scam. Investors should remain focused on their established, long-term investment strategy and avoid being lured by speculative short-term wins that defy financial reality.
Finally, while not strictly an investment scam, the increased volume of holiday online shopping dramatically increases your exposure to phishing and identity theft, which can quickly compromise your investment accounts. Scammers send emails or text messages claiming a “missed package delivery” or an “issue with your holiday payment” from a major retailer or carrier. Clicking the link takes you to a fraudulent site designed solely to steal your login credentials, which they can then use to access your brokerage or bank accounts. To protect yourself, never click a link in an unsolicited email or text regarding a delivery or payment, especially if the message is unexpected, contains poor grammar, or has an irregular website address. Instead, open a new browser tab and navigate directly to the official retailer’s website or carrier’s tracking page to check your status securely.
The best gift you can give your future self is a secure and protected investment portfolio. Consult with a licensed investment professional to discuss viable year-end investment strategies tailored to your needs. This December, please stay vigilant. Before you invest or click, take the time to pause, check, and verify. A crucial step is to use the free tools provided by the Utah Division of Securities to check the license and registration status of any person or investment product being offered. If you believe you have been contacted by a fraudulent individual or have fallen victim to an investment scam, please contact the Utah Division of Securities immediately.
