November 03, 2025
In December, an accounts payable clerk at a midsize firm received an urgent message appearing to be from her "CEO": Purchase $3,000 in Apple gift cards for clients, scratch off the codes, and send them via email. Though suspicious, it came from the boss's name amid busy holiday chaos. By the time she verified, the scammer had already cashed out, leaving the company with a costly loss.
This scam is painful, but far worse frauds exist. That same month, Luxembourg chemical maker Orion S.A. fell prey to a sophisticated wire fraud. An employee received seemingly routine transfer requests, supposedly from trusted partners. Urgent and aligned with normal processes, these instructions were followed without hesitation.
The devastating outcome? Cybercriminals walked away with $60 million - over half the company's yearly profits vanished through fraudulent wire transfers.
Think your small business is safe? Think again. Gift card scams alone drained businesses of $217 million in 2023, while business email compromise represented 73% of cyberattacks in 2024. The holidays are a prime target since teams are overwhelmed, distracted, and processing numerous transactions.
Top 5 Holiday Scams Your Employees Must Recognize (Before They Cost You Thousands)
1. "CEO Gift Card Request" Scam (The $3,000 Trap)
- The scam: Fraudsters impersonate senior leaders pressuring staff to buy gift cards for "clients" or "employee appreciation." In early 2024, 37.9% of business email compromise incidents involved gift card schemes.
- How to prevent: Enforce a strict policy requiring two approvals before purchasing gift cards. Educate employees that executives will never request gift cards via text.
2. Invoice & Payment Diversions (The High-Dollar Fraud)
- The scam: Cybercriminals send fake "updated banking details" or hijack vendor emails just as year-end payments are due. For example, in June 2024, the Town of Arlington, MA, lost nearly $500,000 this way.
- How to prevent: Always confirm any bank detail changes via a trusted phone number, never the one in the email. Adopt a "call verification" rule for financial changes above $5,000.
3. Fake Shipping & Delivery Alerts
- The scam: Phishing emails or texts impersonate UPS, FedEx, or USPS, urging recipients to "reschedule delivery" via malicious links.
- How to prevent: Train employees to visit carriers' websites directly by typing URLs and bookmark official tracking pages to avoid deceptive links.
4. Malicious "Holiday Party" Attachments
- The scam: Emails carry attachments named "Holiday_Schedule.pdf" or "Party_List.xls" that install malware when opened.
- How to prevent: Block macros, scan all attachments thoroughly, and foster a culture of verifying unexpected files.
5. Fraudulent Holiday Fundraisers
- The scam: Phishing websites impersonate charities or fake "company match" campaigns to steal donations or harvest data.
- How to prevent: Circulate an approved charity list and mandate donations go through authorized portals only.
Why These Scams Succeed (And How to Protect Your Business)
Tools that streamline business—email, online banking, digital payments—are the same ones fraudsters exploit. These attacks are far from outdated "Nigerian prince" emails; they're advanced schemes combining social engineering and company-specific research.
Organizations that conduct phishing simulations reduce risk by 60%, yet most small businesses lack employee training. Multifactor authentication stops 99% of unauthorized logins, but many still rely on passwords alone.
Your Essential Holiday Security Checklist
Before the holiday rush, implement these safeguards:
- Two-Person Rule: Require verbal confirmation via a separate channel for any transaction exceeding your defined limit.
- Gift Card Policy: Enforce a written policy banning gift card purchases through email or text.
- Vendor Verification: Verify all bank or payment information changes by calling numbers already on file.
- Multifactor Authentication: Activate MFA on all email, banking, and cloud platforms.
- Holiday Awareness: Educate your team about these five scams using real-world examples.
The Hidden Toll: Beyond the Monetary Loss
Though Orion's headline-grabbing $60 million loss stands out, small businesses often bear heavier hidden costs:
- Disrupted operations during peak seasons
- Reduced productivity as teams deal with recovery
- Diminished customer trust if sensitive data is compromised
- Higher insurance premiums following cyber incidents
The average business email compromise costs $129,000 per incident—enough to close many small firms at the worst time of year.
Keep Your Holidays Joyful, Not Risky
The season should focus on growth and celebration, not costly fraud cleanup. A simple team meeting, firm policies, and layered security measures can significantly deter cybercriminals from invading your financials.
Remember: One verification call could have prevented Orion's $60 million loss. With awareness and straightforward checks, you can shield your business from becoming the next cautionary story.
Ready to secure your team before the New Year? Click here or call us at 973-439-0306 to schedule a 10-Minute Discovery Call with our experts. We'll guide you through effective, practical steps to protect your business. Don't let cybercriminals ruin your holiday success; the best gift this season is peace of mind.
