The Holiday Scam That Cost One Company $60 Million (And How To Protect Yours)

Last December, an accounts payable clerk at a midsize company received an urgent text appearing to be from her "CEO": Purchase $3,000 in Apple gift cards for clients, scratch off the codes, and email them immediately. Despite it sounding suspicious, the message used the boss's name during a hectic holiday period. Tragically, by the time she verified the request, the scammer had already drained the cards, leaving the business with a significant financial loss.

While this scam hurts, some attacks can devastate businesses completely. That same month, Orion S.A., a chemical producer based in Luxembourg, suffered a catastrophic fraud. An employee received emails mimicking trusted colleagues or partners, requesting urgent wire transfers that seemed routine and aligned with normal operations. Without hesitation, multiple transfers were executed as instructed.

The outcome? $60 million wired directly to cybercriminals—more than half the company's yearly profits vanished in a matter of transactions.

Think your small business isn't on hackers' radar? Think again. Gift card scams alone cost companies over $217 million in 2023, and 73% of all cyber attacks in 2024 involved business email compromise. Criminals specifically target the holiday season, capitalizing on your team's distractions, stress, and increased transactional volume.

Top 5 Holiday Scams That Could Cost Your Business Thousands

1. "Your Boss Needs Gift Cards" - The $3,000 Text Scam

• The Scam: Fraudsters impersonate executives, pressuring staff to buy gift cards for "clients" or "employee appreciation." In Q1 2024, these deceptive gift card scams made up 37.9% of business email compromise cases.
• Prevention: Implement a strict policy requiring dual approvals before any gift card purchase. Train employees that legitimate executives never request these cards by text.

2. Invoice and Payment Alteration - The High-Stakes Money Grab

• The Scam: Hackers send fake "updated banking info" or hijack vendor email threads right as year-end bills are due. For example, in June 2024, Arlington, MA, lost nearly $500,000 to this type of fraud.
• Prevention: Always verify banking changes by calling a known number, never the one provided in the email. Require verbal confirmation for transactions exceeding $5,000.

3. Fake Shipping and Delivery Alerts

• The Scam: Phishing emails or texts masquerade as UPS, FedEx, or USPS, urging recipients to click links to "reschedule delivery."
• Prevention: Educate employees to access courier websites directly via browser, bookmarking official tracking pages to avoid malicious links.

4. Malicious "Holiday Party" Attachments

• The Scam: Emails containing attachments such as "Holiday_Schedule.pdf" or "Party_List.xls" that infect systems with malware when opened.
• Prevention: Restrict macro execution, scan all attachments thoroughly, and foster a policy for verifying unexpected files before opening.

5. Fake Holiday Fundraisers

• The Scam: Phishing websites impersonate charities or launch bogus "company match" initiatives to steal donations or harvest data.
• Prevention: Distribute a vetted list of approved charities and mandate all donations funnel through official company channels.

Why These Scams Succeed and How to Block Them

Emails, online banking, and digital payments increase business efficiency but also provide avenues for scammers. These sophisticated attacks combine social engineering with careful company research—they are not your typical spam or "Nigerian prince" scams.

Companies regularly running phishing drills see a 60% reduction in risk, yet many small businesses skip employee cyber training. Enabling multifactor authentication prevents 99% of unauthorized access, but a surprising number still rely solely on passwords.

Your Essential Holiday Cybersecurity Checklist

Before the holiday rush, implement these critical defenses:

• Two-Person Authorization: Require verbal confirmation via a separate channel for all transactions above your internal limit.
• Gift Card Policy: Enforce a strict rule against purchasing gift cards through email or text.
• Vendor Payments Verification: Verify all payment or banking changes over the phone using pre-existing contact details.
• Enable MFA Everywhere: Turn on multifactor authentication on all email, banking, and cloud accounts to block unauthorized access.
• Holiday Fraud Awareness: Educate your team on these five scams using real-world examples to keep vigilance high.

The Hidden Costs: Beyond Just Dollars

While Orion's massive $60 million theft grabbed headlines, smaller businesses often suffer even more profound consequences:

• Critical operations pause at the busiest time of year.
• Employee productivity suffers as teams scramble to recover.
• Client trust deteriorates if customer data is breached.
• Insurance rates soar post-incident.

The average loss from a business email compromise attack is $129,000 — enough to close many small companies during peak season.

Keep Your Holidays Secure and Successful

Holidays should focus on growth and celebration—not costly fraud recoveries. By holding team briefings, establishing clear policies, and layering cybersecurity defenses, you can effectively shield your finances from cybercriminals.

Remember: The Orion employee's single phone verification call could have saved $60 million. With the right awareness and simple verification steps, your business can stay safe and avoid becoming a costly warning story.

Ready to protect your team before the New Year? Click here or call us at 954-327-1001 to schedule a Consult. We'll guide you through straightforward, effective measures to safeguard your business. The best gift this holiday season? Peace of mind for your company.