I wouldn't call it unbeatable but Fritz always used to have a very poor handicap-mode. Look out for Aquarium which has two very nice engine-based handicaps. One is using Rybka the other Delfi.
Fritz 12, 1080 Elo is too strong!

How can the Elo 1080 (the minimum) play so strong and beat me every time.
I don't have the latest version of Fritz, and I've never tried playing at the minimum handicap before... but I was messing around with it because of your post, and you know, i think there may be a bug where if you set it to the absolute minimum handicap rating, it plays at full strength -- LOL. which would account for your difficulties wouldn't it? Try setting the handicap a click or two above rock bottom and see if that changes things.
This Fritz 12 has loads of features I am working through, the only problem I've encountered are in the training section:
How can rated games be deleted?
How can the Elo 1080 (the minimum) play so strong and beat me every time.
The engine can be tweaked and you can play for instance with an older application, reduce the depth search, reduce the hashtable and permanent brain and other engine features BUT even stil the engine is unbeatable at 1080 Elo points and is very frustrating.