November 03, 2025
Last December, an accounts payable clerk at a midsize company received an urgent and suspicious text claiming to be from her CEO: "Purchase $3,000 in Apple gift cards for clients, scratch off the backs, and email the codes." Though it seemed unusual, the message appeared to come from her boss during the hectic holiday season. Sadly, by the time she verified the request, the scammer had vanished with the funds, leaving the company to absorb the loss.
While this scam caused frustration, far more damaging frauds exist. That same month, Orion S.A., a chemical company in Luxembourg, suffered a catastrophic loss. An employee received seemingly routine and urgent emails requesting wire transfers, apparently from trusted colleagues or partners. Without suspicion, multiple transfers were executed.
The outcome? Cybercriminals drained $60 million—over half the company's yearly profits—in fraudulent wire transfers.
Think your small business is safe from such threats? Think again. Gift card scams alone cost companies over $217 million in 2023, and business email compromise (BEC) attacks represented 73% of cyber incidents in 2024. Criminals exploit the holiday rush when employees are distracted, stressed, and handling increased transactions.
Top 5 Holiday Scams Your Team Must Recognize to Prevent Costly Losses
1. "Your Boss Wants Gift Cards" - The $3,000 Text Scam
- The Scam: Impersonators pretend to be executives pushing employees to buy gift cards for "clients" or "employee rewards." In Q1 2024, nearly 38% of BEC attacks involved gift card fraud.
- How to Prevent It: Enforce a strict policy requiring two levels of approval for gift card purchases. Train staff that executives never request gift cards via text messages.
2. Invoice & Payment Detail Frauds - The Large-Scale Heist
- The Scam: Scammers send falsified banking updates or hijack vendor emails near billing deadlines. In June 2024, the Town of Arlington, MA, lost almost $500,000 this way.
- How to Prevent It: Always verify any bank detail changes via phone numbers already on file—not those in emails. Institute a mandatory phone confirmation process for all financial changes exceeding $5,000.
3. Fake Shipment Notifications
- The Scam: Phishing emails or texts pretend to be from UPS, FedEx, or USPS with links to "reschedule" deliveries.
- How to Prevent It: Educate employees to avoid clicking links and instead type courier websites directly into browsers. Bookmark legitimate tracking sites to avoid phishing traps.
4. Malicious Holiday Party Attachments
- The Scam: Emails containing attachments like "Holiday_Schedule.pdf" or "Party_List.xls" that install malware once opened.
- How to Prevent It: Disable macros, scan all attachments, and foster a culture of verifying unexpected files before opening.
5. Fake Holiday Fundraisers
- The Scam: Fraudulent websites pretend to be charities or offer fake company matching campaigns to steal donations or personal data.
- How to Prevent It: Provide an approved list of charities and ensure all donations are routed through official company-approved channels.
Understanding Why These Scams Succeed and How to Defend Your Business
Tools designed to streamline business—email, online banking, electronic payments—are the very avenues scammers exploit. These are not your typical "Nigerian prince" schemes but sophisticated social engineering attacks tailored with deep company knowledge.
Companies conducting frequent phishing simulations see a 60% risk reduction, yet many small businesses neglect employee training. Multifactor authentication (MFA) prevents 99% of unauthorized access, but numerous organizations still rely solely on passwords.
Your Essential Holiday Cybersecurity Checklist
Prepare your business with these best practices before the holiday season peaks:
- Two-Person Verification Rule: Require verbal confirmation through a separate communication channel for transactions exceeding your set limits.
- Gift Card Policy: Formalize a no gift card purchase rule via email or text.
- Vendor Verification: Always validate banking or payment changes by calling phone numbers already in your records.
- Activate Multifactor Authentication: Enable MFA on all corporate email, banking, and cloud services.
- Holiday Fraud Awareness: Educate your employees on these five scams with real-world examples.
The True Impact: Beyond Just Financial Loss
Though Orion's $60 million loss made headlines, smaller businesses often bear even heavier hidden damages:
- Disruptions during your busiest season.
- Reduced productivity as teams scramble to recover.
- Damaged customer trust if sensitive data is exposed.
- Higher insurance premiums following a cyber incident.
The average financial hit per BEC incident is $129,000 — a devastating blow to many small businesses during critical periods.
Keep Your Holidays Joyful and Your Business Secure
The holiday season should focus on growth and celebration, not recovering from fraud. A quick team meeting, clear policies, and layered security can help keep your company's finances safe.
Remember: Orion's employee could have prevented a $60 million loss with just one verification call. With increased awareness and straightforward precautions, your business can avoid becoming the next cautionary headline.
Ready to safeguard your team before the New Year? Click here or call us at (502) 473-9330 to book a 15-Minute Discovery Call where we'll guide you through effective and simple steps to protect your business. Don't let cybercriminals ruin your holiday achievements—the best gift this season is peace of mind.
