Last December, an accounts payable clerk at a midsize firm received an urgent text allegedly from her “CEO”: purchase $3,000 in Apple gift cards for clients, scratch off the backs, and email the codes. Although it sounded suspicious, the message appeared to come from the boss, and it was peak holiday rush. By the time she verified, the scammer had already cashed out, and the company suffered the loss.

While this scam hurt, others can devastate a business entirely. That same month, the Luxembourg-based chemical manufacturer Orion S.A. fell prey to a far more damaging fraud. An employee received what looked like legitimate email requests for wire transfers from trusted colleagues or partners. The messages seemed urgent and routine. Without hesitation, the employee processed several transfers as directed.

The outcome? $60 million wired straight to cybercriminals — over half of the company’s annual profits wiped out by fake wire transfers.

If you think your small business is too minor to attract hackers, think again. In 2023 alone, gift card scams cost businesses over $217 million, while business email compromise attacks made up 73% of cyber incidents in 2024. The holiday season is prime time for these attacks because criminals exploit your team’s distraction, stress, and increased transaction volume.

Top 5 Holiday Scams Your Employees Must Recognize (Before They Drain Your Wallet)

1. “Your Boss Needs Gift Cards” (The $3,000 Text Trap)

• The Scam: Fraudsters impersonate executives to coerce staff into buying gift cards for supposed “clients” or “employee rewards.” In Q1 2024, 37.9% of business email compromise cases involved gift card scams.
• How to Prevent: Institute a strict policy requiring dual approvals for gift card purchases. Train employees that executives will never request gift cards over text.

2. Invoice & Payment Fraud (The Big Money Scheme)

• The Scam: Cybercriminals send fake “updated banking info” or hijack vendor email chains just as year-end payments are due. For example, in June 2024, Arlington, MA lost nearly $500,000 via such a scheme.
• How to Prevent: Always verify any bank account changes by calling a trusted phone number unrelated to the email. Implement a mandatory phone call confirmation for financial changes above $5,000.

3. Fake Shipping & Delivery Alerts

• The Scam: Phishing emails or texts impersonate UPS, FedEx, or USPS with links to “reschedule delivery.”
• How to Prevent: Educate employees to always enter carrier URLs directly into browsers and bookmark official tracking sites to avoid clicking suspicious links.

4. Malicious “Holiday Party” Attachments

• The Scam: Emails with attachments like “Holiday_Schedule.pdf” or “Party_List.xls” deliver malware when opened.
• How to Prevent: Block macros, scan attachments thoroughly, and encourage a culture of verifying unexpected files.

5. Fraudulent Holiday Fundraisers

• The Scam: Phishing websites mimic charities or fake “company match” donation drives to steal money or personal data.
• How to Prevent: Circulate an approved charity list and mandate donations go through official company channels only.

Why These Attacks Succeed (And How You Can Stop Them)

Digital tools that drive business efficiency—like email, online banking, and digital payments—are precisely what scammers exploit. These aren’t outdated “Nigerian prince” scams; they are highly sophisticated, blending social engineering with detailed research about your organization.

Companies that run regular phishing simulations cut their risk by 60%, yet many small businesses skip employee training. Multifactor authentication (MFA) blocks 99% of unauthorized logins, but many still rely solely on passwords.

Your Holiday Cybersecurity Checklist

Prepare your team before the holiday rush with these essential steps:

• Two-Person Verification: Require verbal confirmation through a separate channel for all transactions above your defined limit.
• Strict Gift Card Rules: Establish and enforce a no gift card purchase policy via email or text.
• Vendor Confirmation: Verify all banking and payment details changes by phone with pre-established contact numbers.
• Enable MFA: Activate multi-factor authentication on all email, banking, and cloud accounts.
• Holiday Scam Awareness: Educate your team on these top five holiday scams with real incidents.

The True Price: More Than Money Lost

While Orion’s loss of $60 million grabbed headlines, for many small firms, the hidden fallout is often worse:

• Disrupted operations during peak season
• Reduced productivity as staff scramble to fix issues
• Damaged customer trust if data breaches occur
• Higher insurance premiums after cyber incidents

The average cost of a business email compromise incident is $129,000—enough to sink many small businesses during their busiest season.

Keep Your Holidays Festive, Not Fraught

Holiday time should focus on growth and celebration, not recovering from wire fraud. A brief team meeting, clear policies, and layered security measures can dramatically reduce your risk and keep cybercriminals out of your financials.

Remember: Orion’s employee could have prevented a $60 million theft with one simple phone call verification. With the right training and easy-to-follow checks, your business can avoid becoming the next cybercrime cautionary tale.

Ready to secure your team before the New Year? Click here or call us at 202-875-5820 to book a Conversation. We’ll guide you through practical steps to safeguard your business. Don’t let cybercriminals spoil your holiday season—the best present you can give your company is peace of mind.

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