Last December, a midsize company's accounts payable clerk received a suspicious text masquerading as a directive from her "CEO": Purchase $3,000 in Apple gift cards for clients, scratch off the codes, then email them. Though it seemed unusual, the message bore the boss's name and the holiday rush kept her busy. Before she could verify further, the cards vanished, the scammer cashed out, and the company suffered the financial hit.
While this scam hurt, some attacks can devastate a business entirely. That same month, Luxembourg chemical manufacturer Orion S.A. fell prey to a more severe fraud. An employee got emails that looked like normal wire transfer requests from trusted colleagues or partners—urgent and typical. Without hesitation, the employee authorized several transfers.
The outcome? Cybercriminals made off with $60 million—over half of Orion's yearly profits—through fraudulent wire transfers.
Think your small business is too insignificant to attract scammers? Think again. In 2023 alone, gift-card scams drained businesses of more than $217 million. And 73% of cyber incidents in 2024 arose from business email compromise attacks. The holiday season is prime for these crimes because your team is busy, stressed, and handling an influx of transactions.
Top 5 Holiday Scams Your Employees Must Recognize (Before They Cost You Thousands)
1. The "$3,000 Text from Your Boss" Scam
- How it works: Impostors impersonate executives to pressure staff into buying gift cards for "clients" or "employee rewards." In Q1 2024, 37.9% of business email compromise cases involved gift-card fraud.
- How to prevent: Enforce a strict rule requiring two approvals before any gift card purchase. Train employees that executives will never request gift cards via text.
2. Invoice and Payment Fraud (The Costly Switch)
- The tactic: Scammers send "updated banking info" or hijack vendor email threads right before year-end payments. For instance, in June 2024, Arlington, MA, lost nearly $500,000 this way.
- How to defend: Always confirm banking changes via a known phone number, never one provided in email. Implement a "phone call verification" for any financial changes exceeding $5,000.
3. Fake Shipping and Delivery Alerts
- The scam: Phishing messages spoofing UPS/FedEx/USPS ask recipients to "reschedule delivery" via malicious links.
- How to avoid: Educate staff to manually enter carrier websites in the browser instead of clicking suspicious links. Bookmark verified tracking pages to bypass phishing attempts.
4. Harmful "Holiday Party" Attachments
- The trick: Emails with files labeled "Holiday_Schedule.pdf" or "Party_List.xls" spread malware upon opening.
- Prevention tips: Disable macros, scan all attachments, and cultivate a culture where verifying unexpected files is standard practice.
5. Fraudulent Holiday Fundraisers
- The risk: Phishing websites impersonate charities or fake "company matching" donation campaigns to steal money or sensitive data.
- Defense: Provide an approved list of charities and require all employee donations to go through official channels only.
Why These Schemes Succeed and How to Stop Them
Essential business tools—emails, online banking, digital payments—are exactly what scammers exploit. These targeted attacks aren't amateur "Nigerian prince" emails; they're sophisticated blends of social engineering backed by detailed company research.
Companies running routine phishing simulations cut their risk by 60%, yet many small businesses overlook employee training. Multifactor authentication can prevent 99% of unauthorized logins, but many still rely solely on passwords.
Your Essential Holiday Cybersecurity Checklist
Prepare your business for holiday security challenges with these steps:
- Two-Person Rule: Require verbal confirmation through a separate channel for transactions above your set threshold.
- Clear Gift Card Policy: Enforce a strict written policy banning gift card purchases via email or text.
- Vendor Verification: Always verify banking or payment changes by calling on pre-existing phone numbers.
- Enable Multifactor Authentication: Use MFA on all email, banking, and cloud services.
- Holiday Scam Awareness: Educate your team about these five common scams with real-life examples.
The True Cost: More Than Just Financial Loss
Although Orion's $60 million loss grabbed headlines, smaller businesses often face hidden, severe consequences:
- Operational shutdowns during critical seasons
- Dropped productivity as staff handle crisis recovery
- Damaged customer trust if sensitive client data is breached
- Rising insurance costs following security incidents
The average business email compromise costs $129,000—enough to topple many small enterprises during their most crucial time.
Keep Your Holidays Joyful and Secure
The holiday season should focus on growth and celebration—not on damage control after wire fraud. A brief team meeting, clear policies, and layered defenses can dramatically reduce your exposure.
Remember, a simple verification call could have prevented Orion's $60 million loss. Ultimately, the right training and checks can shield your business from becoming the next cautionary tale.
Ready to secure your team before the New Year? Click here or call us at 419-678-2083 to schedule a 10-Minute Discovery Call. We'll guide you through practical steps to safeguard your business. Protect your holiday success—the best gift this season is peace of mind.