November 03, 2025
Last December, a midsize company's accounts payable clerk received an urgent message supposedly from the "CEO": purchase $3,000 in Apple gift cards for clients, scratch the codes, and email them. Though suspicious, the request came under the boss's name amid holiday busyness. By the time she verified, the scammer had already cashed out, and the company suffered a loss.
Such scams can hurt, but others cause even more damage. That same month, Orion S.A., a chemical manufacturer in Luxembourg, faced a devastating cyberattack. An employee received what appeared to be authentic emails asking for wire transfers—likely mimicking trusted partners. Believing the requests urgent and routine, multiple transfers were made.
The outcome? Cybercriminals stole $60 million—over half of the company's yearly profits—in fraudulent transfers.
Think your small business isn't a target? Think again. In 2023 alone, gift-card scams drained businesses of more than $217 million, while business email compromise (BEC) attacks accounted for 73% of all cyber incidents in 2024. Hackers exploit the holiday hustle when teams are distracted, stressed, and handling increased transactions.
Top 5 Holiday Scams Your Employees Must Know to Prevent Costly Losses
1. "Your Boss Needs Gift Cards" Scam ($3,000 Gift Card Trap)
- The Scam: Impersonators pose as executives, pressuring staff to buy gift cards for "clients" or "employee rewards." In Q1 2024, nearly 38% of BEC attacks involved gift card fraud.
- How to Prevent: Enforce a strict policy requiring two approvals for gift card purchases. Train employees that executives never request gift cards via text.
2. Invoice & Payment Diversion Schemes (Costly Financial Frauds)
- The Scam: Fraudsters send falsified banking details or infiltrate vendor email threads just before year-end billing. For example, Arlington, MA, lost almost $500,000 in June 2024 to such a scheme.
- How to Prevent: Always verify banking changes by calling a known number, never by email. Adopt a "phone call verification" for all transactions exceeding $5,000.
3. Fake Shipping & Delivery Alerts
- The Scam: Phishing emails or texts impersonate carriers like UPS, FedEx, or USPS with links to "reschedule delivery."
- How to Prevent: Train employees to manually type the carrier's website into browsers. Bookmark official tracking pages to avoid malicious links.
4. Malicious Attachments Masquerading as "Holiday Party" Files
- The Scam: Emails containing attachments like "Holiday_Schedule.pdf" or "Party_List.xls" that deploy malware when opened.
- How to Prevent: Disable macros, scan attachments thoroughly, and encourage a culture of verifying unexpected files.
5. Fake Holiday Fundraising Scams
- The Scam: Phishing websites impersonate charities or fake "company match" campaigns to steal donations or personal data.
- How to Prevent: Provide employees with an approved charity list and ensure that all donations go through official channels.
Why These Attacks Succeed and How to Defend Against Them
The same tools that streamline business—email, online banking, digital payments—are leveraged by scammers. These aren't simple "Nigerian prince" scams; they are complex operations combining social engineering with detailed knowledge of your company.
Companies that regularly conduct phishing simulations reduce their risk by 60%, yet many small businesses neglect employee training. Multifactor authentication (MFA) blocks 99% of unauthorized access, but many organizations still rely solely on passwords.
Your Essential Holiday Cybersecurity Checklist
Before the holiday rush, implement these measures:
- Two-Person Approval Rule: Require verbal confirmation for any transaction above your designated limit through a separate communication channel.
- Gift Card Policy: Establish a clear written policy forbidding gift card purchases via email or text.
- Vendor Verification: Always confirm payment or banking updates by calling previously known contact numbers.
- Enable Multifactor Authentication: Apply MFA across all email, financial, and cloud accounts.
- Holiday Awareness Training: Educate your team about these five holiday scams using real-world examples.
The Hidden Costs Beyond Money
Orion's $60 million theft grabbed headlines, but smaller businesses often suffer even more due to hidden consequences:
- Business operations halt during crucial peak season
- Staff productivity declines as they manage crisis cleanup
- Customer confidence diminishes if sensitive data leaks
- Insurance costs increase following cyber incidents
The average financial loss per BEC incident sits at $129,000—potentially devastating for many small businesses during critical periods.
Keep Your Holidays Joyful and Secure
The holiday season should focus on progress and celebration—not recovering from wire fraud. A quick team briefing, smart policies, and layered protections effectively keep cybercriminals at bay.
Remember: A simple verification call could have stopped Orion's $60 million loss. With awareness and basic safeguards, your business can avoid becoming a cautionary story.
Ready to secure your team before the New Year? Click here or call us at (805) 295-8883 to schedule a 10-Minute Discovery Call. We'll guide you through quick, effective steps to protect your company—ensuring the best gift this holiday season is peace of mind.
