November 03, 2025
Last December, a mid-sized company's accounts payable clerk received an urgent message appearing to be from her CEO: Purchase $3,000 in Apple gift cards for clients, scratch off the codes, and email them immediately. Despite the unusual request, it seemed genuine coming from the boss's name during the busy holiday season. By the time she realized and verified the request, the scammer had already cashed out, leaving the business to absorb the loss.
While this scam was painful, some attacks inflict far more severe damage. That same month, Orion S.A., a Luxembourg-based chemical manufacturer, suffered a catastrophic fraud. An employee got what looked like legitimate emails requesting wire transfers — apparently from trusted colleagues or partners. The emails were urgent and matched routine business practices. Acting without hesitation, the employee completed multiple wire transfers as instructed.
The outcome? $60 million vanished to cybercriminals—over half the company's yearly profits lost through fraudulent transfers.
Think your small business is exempt? Think again. In 2023, gift-card scams alone drained businesses of more than $217 million. In 2024, business email compromise attacks made up 73% of cyber incidents. The holiday season is particularly vulnerable since teams are distracted, stressed, and handling a surge of transactions.
Top 5 Holiday Scams Your Employees Must Know to Prevent Costly Losses
1. "Boss Needs Gift Cards" Scam (The $3,000 Text Trap)
- The Scam: Fraudsters pretend to be executives, pressuring employees to buy gift cards for "clients" or "employee appreciation." In early 2024, nearly 38% of email compromise cases involved gift-card fraud.
- How to Prevent: Enforce a strict company policy requiring two approvals before any gift card purchase. Train staff that executives never ask for gift cards via text.
2. Invoice & Payment Alteration Scams (The High-Dollar Attack)
- The Scam: Cybercriminals send fake "updated bank details" or infiltrate vendor email threads right when end-of-year payments are due. For example, Arlington, MA lost nearly $500,000 to this fraud in June 2024.
- Prevention Tip: Always verify any banking changes by calling a trusted phone number — not the one listed in the email. Implement a "phone call confirmation" policy for transactions over $5,000.
3. Fake Shipping & Delivery Alerts
- The Scam: Phony emails or texts impersonate UPS, FedEx, or USPS with fake links to "reschedule delivery."
- How to Stay Safe: Train employees to navigate directly to carriers' official sites rather than clicking on email links. Bookmark genuine tracking pages to avoid phishing traps.
4. Malicious "Holiday Party" Email Attachments
- The Danger: Emails containing attachments like "Holiday_Schedule.pdf" or "Party_List.xls" that unleash malware once opened.
- Prevention Measures: Disable macros, thoroughly scan all attachments, and instill a culture of verifying unexpected files before opening.
5. Fake Holiday Fundraisers
- The Scam: Fraudulent websites mimicking charities or fake "company match" donation campaigns aimed at stealing money or data.
- How to Protect Yourself: Distribute a vetted charity list and mandate all donations route through official channels only.
Why These Scams Succeed—and How to Defend Your Business
Tools that streamline work—emails, online banking, digital payments—are leveraged by scammers who blend social engineering with detailed company research. These are not your typical spam emails; these are expertly crafted attacks targeting your business.
Businesses that conduct frequent phishing simulations see a 60% reduction in risk, yet many small firms skip employee training. Multifactor authentication (MFA) blocks 99% of unauthorized access, but relying solely on passwords remains common and risky.
Your Essential Holiday Security Checklist
Prepare your team before the holiday rush with these key steps:
- The Two-Person Rule: Require verbal confirmation through an independent channel for all transactions exceeding your set limit.
- Gift Card Policy: Implement a written policy strictly forbidding gift card purchases via email or text.
- Vendor Verification: Confirm any payment or banking changes by calling pre-established contact numbers.
- Activate MFA: Enable multifactor authentication across all email, banking, and cloud services.
- Holiday Awareness Training: Educate your staff on these five prevalent scams with real-world examples.
The True Impact: Beyond Financial Loss
Though Orion's $60 million loss grabbed headlines, many small businesses face even tougher hidden costs, including:
- Operational shutdowns during peak sales periods
- Decreased productivity as staff work overtime to resolve issues
- Damaged customer trust if sensitive data is compromised
- Higher insurance premiums triggered by cyber incidents
On average, business email compromise losses reach $129,000 per incident—a potentially devastating blow during the busiest season for small businesses.
Keep Your Holidays Safe and Prosperous
The holiday season should focus on growth and celebration, not cleaning up after fraud. A brief staff meeting, a few smart policies, and layered security can dramatically reduce your risk of falling victim.
Remember, the Orion employee could have prevented a $60 million loss with a single verification call. With the right knowledge and simple safeguards, your business can stay protected and avoid becoming a cautionary headline.
Ready to secure your team before the New Year? Click here or call us at 978-664-1680 to schedule a 15-Minute Discovery Call. We'll guide you through straightforward, practical steps to protect your business. This holiday season, give your company the priceless gift of peace of mind.
