November 03, 2025
Last December, an accounts payable clerk at a midsize company received a suspicious urgent message from someone impersonating her "CEO": Purchase $3,000 worth of Apple gift cards for clients, scratch off the codes, and email them. Though it seemed unusual, the message bore the boss's name, and amidst the hectic holiday rush, she followed through. By the time she verified, the funds were gone, cashed out by criminals, leaving the company to absorb a costly loss.
That incident was painful, but some scams inflict far deeper damage. In the same month, Orion S.A., a chemical manufacturer based in Luxembourg, fell prey to a fraudulent scheme far more catastrophic. An employee received what appeared to be standard email requests for wire transfers, seemingly from a familiar colleague or trusted partner. Sounding urgent and legitimate, these requests matched the company's usual operations. Without hesitation, the employee executed multiple wire transfers as requested.
The outcome? Cybercriminals walked away with $60 million—over half of the company's annual profits—stolen through a series of false wire transfers.
Think your small business is too insignificant to be targeted? Think again. Gift card scams alone drained more than $217 million from businesses in 2023. In 2024, business email compromise attacks accounted for a staggering 73% of all cyber incidents. The holiday season is prime for such attacks, as criminals exploit your team's distraction, stress, and increased transaction volume.
Top 5 Holiday Scams Employees Must Recognize to Protect Your Business (Before They Cause Thousands in Losses)
1. "Your Boss Wants Gift Cards" Scam (The $3,000 Text Trap)
- The Scam: Impersonators pretend to be owners or managers, pressuring staff to buy gift cards for "clients" or "employee rewards." In early 2024, nearly 38% of business email compromise incidents involved gift card scams.
- How to Prevent: Establish a strict company policy requiring two approvals before any gift card purchase. Train employees that executives will never request gift cards via text messages.
2. Fake Invoice & Payment Changes (The High-Stakes Fraud)
- The Scam: Hackers send fraudulent bank account updates or hijack email threads with vendors just as year-end bills are due. In June 2024, the Town of Arlington, MA, suffered nearly half a million dollars lost to this attack.
- How to Prevent: Always verify banking changes via a trusted phone number, never rely on emails alone. Implement a "phone call verification" policy for all financial transactions exceeding $5,000.
3. Phony Shipping & Delivery Notifications
- The Scam: Phishing emails or texts claim to be from carriers like UPS, FedEx, or USPS, tricking recipients into clicking links to "reschedule delivery."
- How to Prevent: Encourage staff to avoid clicking links and instead visit the carrier's official site by typing the URL directly into the browser. Bookmark legitimate tracking pages to steer clear of malicious links.
4. Malicious "Holiday Party" Attachments
- The Scam: Emails containing attachments like "Holiday_Schedule.pdf" or "Party_List.xls" which release malware when opened.
- How to Prevent: Enforce macro blocking, scan all attachments thoroughly, and encourage a culture where employees verify unexpected files before opening.
5. Fake Holiday Fundraising Campaigns
- The Scam: Phishing websites imitate charities or forge "company match" donation drives to steal funds or confidential data.
- How to Prevent: Distribute approved charity lists and mandate donations go through official, verified portals only.
Why These Frauds Succeed—and How to Defend Against Them
While tools like email, online banking, and digital payments boost efficiency, they also open doors for sophisticated scams. These attacks are far from the clichéd "Nigerian prince" emails; they combine social engineering with meticulous research about your company.
Companies practicing regular phishing simulations cut risks by up to 60%, yet many small businesses skip this crucial step. Similarly, multifactor authentication prevents 99% of unauthorized logins, but many still rely on passwords alone.
Your Essential Holiday Cybersecurity Checklist
Prepare before the holiday rush with these key actions:
- Two-Person Verification Rule: Require verbal confirmation via a separate channel for transactions over your set limit.
- Gift Card Protocol: Mandate no gift card purchases via email or text unless explicitly authorized.
- Vendor Confirmation: Verify payment or banking account changes by calling numbers on record—never trust email information alone.
- Enable Multifactor Authentication: Activate MFA on all email, banking, and cloud services.
- Holiday Scam Education: Educate your team on these five scams, using real-life examples.
The Hidden Costs Extend Beyond Money
While Orion's $60 million loss hit headlines, smaller businesses often feel the aftermath more deeply through:
- Severe disruptions during peak seasons
- Lost productivity as employees work to recover
- Damaged customer trust if sensitive information is exposed
- Increased insurance costs following cyber incidents
The average damage from a business email compromise is $129,000—enough to destroy many small businesses precisely when every dollar counts.
Keep Your Holidays Bright, Not Burdened
The holiday season is meant for growth and joy—not grappling with fraud aftermath. A brief team meeting, a handful of smart policies, and layered defenses can significantly shield your company's finances.
Remember: The Orion employee's single verification call could have stopped a $60 million loss. With the right awareness and simple verification steps, your business can avoid becoming another cautionary tale.
Ready to safeguard your team before the New Year? Click here or call us at (858) 538-4729 to schedule a Consultation. We'll guide you through practical, fast steps to keep your business safe and ensure cybercriminals don't ruin your holiday success. Because the best gift this season is peace of mind for your business.
