November 03, 2025
Last holiday season, an accounts payable clerk at a midsize company received an urgent text claiming to be from her "CEO": Purchase $3,000 in Apple gift cards for clients, scratch off the codes, and email them immediately. It seemed suspicious, but the request used the boss's name and arrived amid frantic year-end demands. By the time she verified, the gift cards were gone, the scammer had vanished with the money, and the company suffered the loss.
While this scam hurt, some are far more crippling. During that same period, Orion S.A., a leading chemical manufacturer in Luxembourg, fell prey to a far costlier fraud. An employee received seemingly routine emails asking for wire transfers, appearing to come from trusted colleagues or partners. The messages were urgent, convincing, and matched normal business operations. Without hesitation, multiple transfers were executed.
The impact was devastating: $60 million — over half the company's annual profit — wired straight to cybercriminals through a series of fraudulent transactions.
If you believe your small business is safe from such attacks, think again. Gift card scams alone drained over $217 million from businesses in 2023, and business email compromise (BEC) attacks accounted for 73% of all cyber incidents in 2024. The holiday season is a prime opportunity for criminals because employees are distracted, stressed, and handling increased transaction volumes.
Top 5 Holiday Scams Your Team Must Recognize Before They Drain Your Funds
1. "Urgent Gift Card Requests from Your Boss" (The $3,000 Text Trap)
- How It Works: Impostors masquerade as company executives pressuring employees to buy gift cards for "clients" or "team appreciation." In early 2024, nearly 38% of BEC attacks involved gift card fraud.
- Protection Tips: Enforce strict company policies requiring two approvals for gift card purchases, and train your team that executives will never request them through text messages.
2. Fake Invoice & Payment Information Updates (Costly Year-End Tricks)
- How It Works: Scammers send fake "updated bank details" or hijack vendor email chains just as bills are due. For example, in June 2024, the Town of Arlington, MA lost almost $500,000 to this scam.
- Protection Tips: Always verify any banking changes by calling a trusted phone number you have on record — never rely on the contact info found in emails. Implement a "phone call confirmation" rule for transactions exceeding $5,000.
3. Fake Shipping & Delivery Alerts
- How It Works: Phishing emails or texts pretend to be from carriers like UPS, FedEx, or USPS, urging employees to click links to "reschedule" deliveries.
- Protection Tips: Train your staff to avoid clicking suspicious links. Instead, type the official carrier's website directly into their browser or bookmark trusted tracking sites.
4. Malicious Attachments Dressed as Holiday Party Info
- How It Works: Emails containing attachments named "Holiday_Schedule.pdf" or "Party_List.xls" can install malware when opened.
- Protection Tips: Block macros, scan all attachments, and promote a culture where employees verify unexpected files before opening.
5. Phony Holiday Fundraisers
- How It Works: Scammers create fake charity websites or bogus "company match" campaigns to steal donations or access personal data.
- Protection Tips: Publish an approved charity list and mandate that all donations are made only through official portals.
Why These Scams Succeed & How to Defend Your Business
The same digital tools that boost business efficiency — email, online banking, digital payments — also provide loopholes for scammers. These aren't your typical "Nigerian prince" spam messages; they are advanced attacks leveraging social engineering and thorough research on your company.
Companies conducting regular phishing drills cut risk by 60%, yet many small businesses skip this vital training. Multifactor authentication (MFA) prevents 99% of unauthorized access, but countless firms still depend solely on passwords.
Your Essential Holiday Security Checklist
Prepare your business before the holiday rush with these key actions:
- Two-Person Verification: Require verbal confirmation via a separate channel for transactions above your predefined limit.
- Gift Card Protocol: Formalize a strict policy prohibiting gift card purchases through email or text.
- Vendor Payment Checks: Confirm all payment or banking updates by calling phone numbers already stored in your system.
- Enable MFA Everywhere: Activate multifactor authentication on all email, banking, and cloud services.
- Holiday Scam Awareness: Educate your team on these five key scams using authentic stories and examples.
The Hidden Price Tag: Beyond Dollar Losses
While Orion's headline $60 million loss shocked many, smaller businesses often face harsher hidden consequences:
- Business operations stalled during critical peak seasons
- Team productivity drops as hours are spent cleaning up the aftermath
- Customer trust deteriorates if sensitive client data is exposed
- Insurance costs surge after cyber incidents
On average, businesses lose $129,000 per BEC attack — a financial blow severe enough to force many small firms out of business at the worst possible time.
Ensure Your Holidays Stay Joyful, Not Jumbled
Holidays are for growth and celebration, not untangling wire fraud disasters. A quick team briefing, clear policies, and layered security measures provide robust protection against cybercriminals invading your finances.
Remember: The employee at Orion could have prevented a $60 million loss with a simple verification phone call. By fostering awareness and implementing straightforward safeguards, your business can avoid becoming the next cautionary story.
Ready to secure your team before the New Year? Click here or call us at 714-369-8197 to book a 15-Minute Discovery Call. We'll guide you through quick, actionable steps to protect your business. Don't let cybercriminals ruin your holiday success; the best gift this season is peace of mind.
