November 03, 2025
Last December, an accounts payable clerk at a midsize company received a suspicious urgent message supposedly from her "CEO": Purchase $3,000 in Apple gift cards for clients, scratch off the codes, and email them. Though it sounded unusual, the request was sent under the boss's name during the hectic holiday season. By the time she verified the order, the gift cards were already redeemed by scammers, leaving the business to cover the loss.
While this scam was painful, some attacks can devastate a company completely. That same month, Orion S.A., a chemical manufacturer based in Luxembourg, fell prey to a far costlier fraud. An employee received what appeared to be routine wire transfer requests via email, seemingly from trusted colleagues or partners. These requests were urgent, credible, and aligned with normal operations. Trusting the emails, the employee executed multiple transfers as directed.
The outcome? Cybercriminals stolen $60 million - more than half of Orion's entire annual profit vanished through fraudulent wire transfers.
If you believe your small business is too insignificant to attract fraudsters, reconsider. In 2023 alone, gift-card scams drained over $217 million from businesses, and in 2024, business email compromise attacks accounted for 73% of all cyber incidents. The holiday season is a hotbed for such attacks since criminals exploit your team's distraction, stress, and increased transaction volume.
5 Critical Holiday Scams Your Employees Must Recognize to Prevent Costly Losses
1. "Your Boss Needs Gift Cards" Scam (The $3,000 Gift Card Trap)
- What happens: Impersonators mimic CEOs or managers and pressure staff to purchase gift cards claiming they're for clients or employee rewards. In Q1 2024, 37.9% of business email compromise attacks were linked to gift card fraud.
- How to stop it: Implement strict company policies requiring dual approvals for gift card purchases. Train employees that executives will never request gift cards via text messages.
2. Invoice & Payment Redirection Fraud (The Major Financial Threat)
- How it works: Scammers send fake "updated banking details" or hack vendor email chains right before year-end payments are due. In June 2024, the Town of Arlington, MA lost nearly $500,000 from this scam.
- Protection tips: Always confirm any banking changes via a phone call to a known number—not the one presented in emails. Enforce a policy requiring verbal confirmation for all financial changes exceeding $5,000.
3. Fake Delivery and Shipping Notifications
- The threat: Phishing emails or texts pretending to be carriers like UPS, FedEx, or USPS prompt recipients to "reschedule delivery" via malicious links.
- Prevention: Educate your team to access carrier websites directly by typing URLs into browsers and bookmarking official tracking pages, avoiding links in unsolicited messages.
4. Malware-Laden "Holiday Party" Email Attachments
- How it happens: Emails with attachments labeled "Holiday_Schedule.pdf" or "Party_List.xls" deliver malware once opened.
- Mitigation: Disable macros, scan all attachments thoroughly, and make checking unexpected files standard practice.
5. Fraudulent Holiday Fundraisers
- The scam: Phishing websites impersonate charities or fake company matching donation programs to steal funds or sensitive data.
- Safeguarding your team: Circulate an approved list of charities and insist all donations go through verified official channels.
Why These Scams Succeed and How to Block Them
While platforms like email, online banking, and digital payments accelerate business, they also open doors for cybercriminals. These attacks aren't random spam—they're carefully crafted, blending social engineering tactics with detailed company research.
Companies running regular phishing simulations cut risks by 60%, yet many small businesses neglect essential employee training. Multifactor authentication prevents 99% of unauthorized logins, but numerous organizations still rely solely on passwords.
Essential Holiday Security Checklist
Prepare your team before holiday chaos begins:
- Two-Person Authorization: Enforce verbal confirmation via separate channels for transactions above your threshold.
- Gift Card Protocol: Have a formal written policy banning gift card requests by email or text.
- Vendor Validation: Verify all payment or banking changes by calling pre-authorized phone numbers.
- Enable Multifactor Authentication: Apply MFA on all email, financial, and cloud accounts.
- Holiday Fraud Awareness: Educate employees on these top 5 scams with real-world examples to keep them alert.
The True Price of Holiday Scams: Beyond Monetary Loss
Although Orion's $60 million loss grabbed headlines, smaller businesses often suffer even more from hidden fallout:
- Disruptions halting operations during critical sales periods
- Sharp decline in productivity as teams patch damage
- Loss of customer trust if sensitive data is compromised
- Increased insurance costs following cyber incidents
The average financial hit per business email compromise incident is $129,000—enough to shutter many small businesses right when they need revenue most.
Keep Your Holidays Safe, Prosperous, and Stress-Free
The holiday season is for growth and celebration—not recovering from fraud. A simple team briefing, clear policies, and layered security measures can effectively ward off attackers and protect your finances.
Remember: The Orion employee could have stopped a $60 million theft with a single phone verification. By raising awareness and implementing straightforward safeguards, your business can avoid becoming the next cautionary headline.
Ready to secure your team before the New Year? Click here or call us at 832-536-9012 to schedule a Discovery Call. We'll guide you through quick, actionable steps to safeguard your business. Don't let cybercriminals spoil your holiday success — the best gift this season is peace of mind.
