Last December, a company lost $60 million—more than half its annual profit—to a single, sophisticated wire fraud scheme.
This wasn’t a phishing email asking for a Nigerian Prince. It was a Business Email Compromise (BEC) attack that exploited the chaos and urgency of the holiday season. An employee received what looked like routine, urgent wire transfer requests from a trusted colleague. They processed the transfers without a second thought, and the money was gone.
You might think your small or midsize business is too small to be a target, but the opposite is true. Criminals target smaller firms because they often lack the defense layers of an enterprise.
- Cyber losses are spiking: In Q1 2024 alone, 37.9% of BEC incidents involved gift card scams, and the average loss per BEC incident hit $129,000—enough to cripple most small businesses.
- The holiday advantage: Cybercriminals bank on the fact that your team is distracted, stressed, and processing more transactions than usual. The season of giving is their season of taking.
Your Essential Holiday Security Huddle: 5 Scams to Watch For
Don’t let urgency override security protocols. Brief your team on these modern scams before the holiday rush starts.
1. Gift Card Impersonation (The Social Engineering Hit)
This is a classic for a reason. Imposters pose as the CEO or Manager via text or email, demanding urgent gift card purchases for “clients” or “employee bonuses.” They rely on the employee’s reluctance to question a superior.
- Your Professional Defense: Establish a Zero-Tolerance Policy: Executives will never request gift cards via text or email. Institute a “Two-Person Approval” rule for all gift card or expense purchases.
2. The Invoice & Wire Switch (The $60M Play)
This sophisticated attack involves fraudsters either spoofing or hijacking a legitimate vendor’s email thread to send “updated banking details” just as major year-end payments are due.
- Your Professional Defense: Implement The Phone Call Rule. Make a mandatory phone call verification—using a number already on file, not the one in the email—for all banking changes or transfers over a set threshold (e.g., $5,000).
3. Shipping/Delivery Phishing (The Quick Click)
Highly realistic emails or texts appear to come from FedEx, UPS, or USPS, demanding a quick click to “reschedule” a package delivery. The link installs malware.
- Your Professional Defense: Enforce a No Clicks Policy. Train employees to manually type the official carrier website into their browser and track packages there. Never click a link in an unsolicited shipping notification.
4. Malicious Attachments (The Malware Drop)
Emails arrive with innocent-looking attachments like “2025_Budget_Forecast.pdf” or “Holiday_Party_Invite.xlsx” that actually install ransomware or keyloggers when opened.
- Your Professional Defense: Configure your systems to block macros by default. Make verifying the sender and content of any unexpected file an ingrained part of your security culture.
5. Fake Fundraisers (The Empathy Trap)
Phishing campaigns leverage the holiday spirit, mimicking charities or fake “company match” programs to steal personal data or donation funds.
- Your Professional Defense: Distribute an approved list of company charities. Require all internal donations or campaigns to flow exclusively through officially sanctioned portals.
From Vulnerable to Bulletproof: Your 3-Point Defense Strategy
Sophisticated cyber attacks exploit simple vulnerabilities. Organizations that run regular phishing simulations reduce their risk by 60%. Start here:
- Enable Multi-Factor Authentication (MFA) Everywhere: This is non-negotiable. MFA blocks over 99% of unauthorized login attempts. Ensure it’s active on all email, banking, cloud services, and sensitive internal applications.
- Enforce the “Two-Person” and “Phone Call” Rules: Social engineering is the weakest link. The Two-Person Rule (two employees must verify transactions) and the Phone Call Rule (for all vendor changes) are your most cost-effective defenses against BEC and wire fraud.
- Proactive Awareness Training: Don’t just send one email. Run a quick, mandatory Holiday Security Huddle with your team. Show them real examples of these scams, and reward employees who report suspicious activity.
The cost of prevention—a staff briefing and layered IT security—is a fraction of the average $129,000 recovery cost.
Ready to lock down your network before the New Year?
Schedule your Free Security Audit today. We’ll show you the quick, practical steps to ensure your holiday success isn’t stolen by cybercriminals.
The best gift you can give your business this season is guaranteed peace of mind.