November 03, 2025
Last December, an accounts payable clerk at a midsize firm received an urgent text appearing to be from her "CEO": Purchase $3,000 in Apple gift cards for clients, scratch off the codes, and email them immediately. Though it seemed suspicious, the message bore her boss's name, and holiday chaos was at its peak. By the time she verified the request, the scammer had already cashed out, leaving the company to bear the loss.
While this gift card scam was painful, other frauds can devastate businesses completely. That same month, Luxembourg-based chemical producer Orion S.A. was deceived by a far more severe phishing attack. An employee received what looked like routine emails requesting wire transfers—seemingly from trusted colleagues or partners. The requests appeared urgent and aligned with the company's usual financial operations. Without hesitation, multiple transfers were executed as instructed.
The outcome? Cybercriminals seized $60 million—over half of the company's yearly profits—through fraudulent wire transfers.
If you believe your small business is safe from such attacks, think again. Gift card scams alone cost businesses more than $217 million in 2023, while business email compromise (BEC) attacks accounted for 73% of cyber incidents in 2024. The holiday season is a hotbed for these scams because criminals exploit times when teams are busy, stressed, and handling increased transactions.
5 Critical Holiday Scams Your Employees Must Recognize to Avoid Costly Losses
1. The "Your Boss Needs Gift Cards" Scam (The $3,000 Trap)
- The Scam: Imposters masquerade as CEOs or managers, pressuring staff to buy gift cards for "clients" or "employee rewards." In early 2024 alone, nearly 38% of BEC attacks involved gift card schemes.
- How to Prevent: Enforce strict company policies requiring two approvals for gift card purchases. Train employees that executives will never request gift cards via text messages.
2. Invoice & Payment Redirection Frauds (The High-Stakes Switch)
- The Scam: Fraudsters send fake "updated banking information" or hijack vendor email conversations, especially near year-end payment cycles. For example, in June 2024, the Town of Arlington, MA, suffered losses approaching half a million dollars this way.
- How to Prevent: Always verify any banking detail changes by calling previously verified phone numbers—not those in the email. Establish a mandatory "phone confirmation" rule for financial transactions above $5,000.
3. Fake Shipping and Delivery Alerts
- The Scam: Phishing emails or texts posing as UPS, FedEx, or USPS with links to "reschedule delivery."
- How to Prevent: Train employees to enter carrier website addresses directly into browsers and bookmark official tracking pages to avoid malicious links.
4. Malicious Attachments in "Holiday Party" Emails
- The Scam: Emails containing attachments named like "Holiday_Schedule.pdf" or "Party_List.xls" that install malware once opened.
- How to Prevent: Disable macros, scan all attachments thoroughly, and encourage employees to verify unexpected files before opening.
5. Fake Holiday Fundraising Schemes
- The Scam: Phishing websites impersonate legitimate charities or fake company matching donation campaigns to steal money and personal data.
- How to Prevent: Maintain a list of approved charities and require all donations to be processed through official company portals.
Why These Cyberattacks Succeed (And Strategies to Defend Your Business)
The powerful technologies we rely on—email, online banking, digital payments—also serve as gateways for criminals. These aren't outdated "Nigerian prince" scams; they are sophisticated operations using social engineering combined with comprehensive research on your company.
Companies that conduct ongoing phishing simulations reduce their risk by 60%. Sadly, many small businesses never train their employees. While multifactor authentication (MFA) prevents 99% of unauthorized access, numerous organizations still depend solely on passwords.
Your Essential Holiday Protection Checklist
Prepare your business for the busy season with these critical actions:
- Two-Person Verification Rule: Require verbal confirmation through a separate channel for all transactions over your established limit.
- Gift Card Protocol: Establish a formal policy prohibiting gift card purchases via email or text.
- Vendor Confirmation: Authenticate all changes to banking or payment details by calling known contacts on file.
- Enable MFA: Apply multifactor authentication across all email, banking, and cloud platforms.
- Holiday Awareness Training: Educate your team on these five holiday scams using real-world examples.
The Hidden Toll: Beyond Financial Losses
Although Orion's dramatic $60 million loss made headlines, smaller businesses often face more damaging consequences:
- Operations stall during critical peak periods.
- Employees lose valuable productivity scrambling to recover.
- Trust erodes if sensitive customer data is exposed.
- Insurance costs escalate following cyber incidents.
On average, each business email compromise event costs $129,000—enough to devastate many small firms, especially during the most critical time of year.
Protect Your Holidays: Celebrate Safely, Avoid Chaos
Holidays are meant to be a time for growth and celebration, not dealing with wire fraud cleanups. A quick team meeting, sensible policies, and layered security measures significantly strengthen your defenses and keep fraudsters away from your finances.
Remember—the Orion employee could have prevented a catastrophic $60 million loss with just one verification call. With proper vigilance and simple checks, your business can avoid becoming a cautionary headline.
Want to ensure your team is fully secured before the New Year? Click here or call us at 435-313-8132 to schedule a 10-Minute Conversation with our experts. We'll guide you through easy, practical steps to safeguard your business. This holiday season, give your company the greatest gift: peace of mind.
