November 03, 2025
Last December, an accounts payable clerk at a midsize company received an urgent text appearing to come from her "CEO": Buy $3,000 in Apple gift cards for clients, scratch off the codes, and email them immediately. Although suspicious, the message used the boss's name and the holiday rush caused confusion. By the time she verified the request, the fraudster had already cashed out the cards, leaving the company to absorb the loss.
While this scam is painful, some attacks destroy businesses outright. Around the same time, Orion S.A., a Luxembourg chemical manufacturer, suffered a catastrophic fraud. An employee received what looked like standard wire transfer requests via email—seemingly from trusted colleagues or partners—urgent and in line with typical operations. Trusting the legitimacy, the employee authorized multiple transfers.
The outcome? Cybercriminals walked away with $60 million—over half of Orion's annual profits—stolen through fraudulent wire transfers.
Think your small business isn't a target? Think again. Gift card scams alone cost companies more than $217 million in 2023, and business email compromise attacks represented 73% of all cyber incidents in 2024. Criminals strategically exploit the holiday season when teams are distracted, stressed, and handling increased transaction volumes.
Top 5 Holiday Scams Employees Must Recognize to Prevent Costly Losses
1. The "Your Boss Needs Gift Cards" Scam (Avoid the $3,000 Text Trap)
- The Scam: Scammers impersonate executives, pressuring staff to buy gift cards under the pretext of client gifts or employee rewards. In early 2024, nearly 38% of business email compromises revolved around gift card fraud.
- How to Prevent: Enforce a strict policy requiring two approvals before purchasing gift cards. Train employees that no executive will request gift cards via text message.
2. Invoice & Payment Fraud (The Large-Scale Money Fraud)
- The Scam: Fraudsters send fake "updated banking info" or hijack vendor email threads just as year-end bills are outstanding. In June 2024, the Town of Arlington, MA, lost nearly $500,000 from this scheme.
- How to Prevent: Always verify bank details via a trusted phone number, never the one provided in the suspicious email. Institute a "phone call rule" to confirm any financial transaction exceeding $5,000.
3. Fake Shipping or Delivery Notifications
- The Scam: Phishing messages posing as UPS, FedEx, or USPS prompt victims to click links to "reschedule delivery."
- How to Prevent: Educate employees to navigate directly to official carrier websites rather than clicking email or text links. Bookmark authentic tracking pages to avoid phishing traps.
4. Dangerous "Holiday Party" Email Attachments
- The Scam: Cybercriminals send emails with attachments named like "Holiday_Schedule.pdf" or "Party_List.xls" that deploy malware when opened.
- How to Prevent: Implement macro blockers, scan all incoming attachments, and cultivate a culture of verifying unexpected files before opening.
5. Fraudulent Holiday Fundraising Campaigns
- The Scam: Phishing websites mimic charities or fake company matching drives to steal money or sensitive data.
- How to Prevent: Provide employees with an approved charity list and require all donations to be made exclusively through official portals.
Why These Scams Succeed and How You Can Fight Them
Modern business tools like email, online banking, and digital payments streamline operations but also offer opportunities for scammers. These are not your typical "Nigerian prince" scams—they use sophisticated social engineering combined with detailed knowledge about your company.
Companies that conduct frequent phishing drills lower their risk by 60%, yet many small businesses neglect employee training. Multi-factor authentication prevents 99% of unauthorized logins, yet password-only protection remains common.
Essential Holiday Security Checklist
Prepare your team before the holiday rush with these steps:
- The Two-Person Rule: Require verbal confirmation from a secondary contact for any transaction exceeding your set limit.
- Gift Card Policy: Establish a formal rule prohibiting gift card purchases requested via email or text.
- Vendor Confirmation: Validate all payment or banking information changes via a pre-existing phone number.
- Enable Multi-Factor Authentication: Activate MFA on all email, banking, and cloud-related accounts.
- Holiday Scam Awareness: Educate your team with real-world examples of these five scams.
The True Impact Goes Beyond Dollars
Though Orion's headline-grabbing $60 million theft shocked many, the hidden repercussions often weigh more heavily on small businesses:
- Workflow disruptions during your busiest season
- Reduced productivity as employees scramble to resolve the breach
- Damaged customer trust if sensitive client data leaks
- Higher insurance premiums following cybersecurity incidents
The average loss from a business email compromise incident hits $129,000 — a potentially fatal blow for many small enterprises at the worst time of year.
Ensure Your Holidays Stay Joyful, Not Risky
The holiday season should focus on growth and celebration—not expensive fraud recovery. A quick team meeting, clear policies, and layered defenses can effectively block criminals from accessing your finances.
Remember: Orion's $60 million loss could have been prevented with a simple verification call. With the right knowledge and basic safeguards, your business won't become a cautionary headline.
Ready to protect your team before the New Year? Click here or call us at 888-820-2992 to schedule a 15-Minute Discovery Call. We'll guide you step-by-step with practical solutions to secure your business. Don't let scammers steal your holiday success — the greatest gift you can give your company this season is peace of mind.
