November 03, 2025
Last December, a midsize company's accounts payable clerk received an urgent message claiming to be from her "CEO": Purchase $3,000 in Apple gift cards for clients, scratch them, and email the codes. Though suspicious, the message seemed authentic, and with the holiday rush underway, the cards were spent before she could verify, leaving the business at a loss.
While this scam was costly, other frauds can devastate companies completely. That same month, Orion S.A., a chemical manufacturer in Luxembourg, was deceived by what seemed like typical email requests for wire transfers from trusted partners. The urgent and plausible instructions led an employee to transfer multiple payments, resulting in a staggering $60 million loss—over half the company's annual profits—falling directly into the hands of cybercriminals.
If you believe your small business is immune, think again. In 2023, gift card scams alone cost companies more than $217 million, and in 2024, business email compromise attacks made up 73% of all cyber incidents. The holiday season is a prime window for criminals, exploiting the hectic atmosphere when teams are distracted and handling increased transactions.
Top 5 Holiday Scams Your Employees Must Recognize to Protect Your Business
1. The "Boss Needs Gift Cards" Scam ($3,000 Text Scheme)
- The Fraud: Impersonators pose as executives, pressuring staff to purchase gift cards for "clients" or "employee rewards." In early 2024, 37.9% of email compromise cases involved gift card scams.
- How to Stop It: Enforce a strict policy: no gift cards without dual authorization. Train employees that executives never request gift cards via text.
2. Invoice & Payment Swaps (The $500,000 Arlington Case)
- The Scam: Criminals send fake banking info or hijack vendor emails as year-end payments are due. In June 2024, Arlington, MA lost nearly $500,000 this way.
- How to Prevent: Always verify banking changes by calling a trusted phone number—not relying on emailed details. Institute a mandatory phone confirmation for transactions over $5,000.
3. Fake Delivery Alerts
- The Threat: Phishing emails or texts falsely claim to be from UPS, FedEx, or USPS with links to "reschedule delivery."
- How to Defend: Train employees to visit carrier websites directly by typing the URL or using bookmarks instead of clicking links.
4. Dangerous "Holiday Party" Attachments
- The Risk: Attachments named "Holiday_Schedule.pdf" or "Party_List.xls" may contain malware that installs once opened.
- Protection Method: Block macros, scan all attachments, and cultivate a habit of verifying unexpected files before opening.
5. Fraudulent Holiday Fundraiser Scams
- The Trick: Phishing sites mimic reputable charities or fake "company match" initiatives to steal data or funds.
- How to Guard: Distribute an approved charity list and ensure donations only go through official company channels.
Why These Scams Succeed & How to Defend Your Business
While tools like email, online banking, and digital payments boost efficiency, they're also exploited by cybercriminals. These attacks are far from naive "Nigerian prince" scams; they are sophisticated blends of social engineering and targeted research into your company.
Businesses that conduct regular phishing drills reduce their risk by 60%, yet many small companies lack employee training. Multifactor authentication blocks 99% of unauthorized access, but too many firms still depend solely on passwords.
Essential Holiday Security Checklist
Prepare your team before the holiday rush with these crucial steps:
- Two-Person Verification: Require verbal confirmation via separate communication channels for transactions exceeding your preset threshold.
- Gift Card Restrictions: Establish written policies banning gift card requests through email or text.
- Vendor Confirmation: Verify all payment or banking changes by calling established phone numbers.
- Enable Multifactor Authentication: Protect all email, banking, and cloud accounts with MFA.
- Holiday Scam Awareness: Educate your team about these top-five scams using real incident examples.
The True Impact: Beyond Financial Losses
Though Orion's $60 million loss grabbed headlines, smaller businesses often face hidden consequences:
- Disruptions in operations during peak periods
- Decreased productivity as teams address the fallout
- Loss of customer trust if sensitive data is compromised
- Rising insurance premiums after cyber incidents
The average cost of a business email compromise is $129,000—often enough to shutter small businesses at the worst time of year.
Keep Your Holiday Season Safe and Successful
The holidays should be a time for growth and celebration, not recovering from wire fraud. Simple team briefings, smart policies, and layered security can block cybercriminals from infiltrating your finances.
Remember, Orion's massive loss could have been prevented with a single verification call. With the right knowledge and precautions, your business can avoid similar pitfalls and enjoy a safe holiday season.
Ready to secure your team before the New Year? Click here or call us at (925) 766-4005 to schedule a 15-Minute Discovery Call. We'll guide you through practical steps to protect your business. Don't let cybercriminals steal your holiday success—the best gift your business can receive this season is peace of mind.
