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 message seemingly from her "CEO": Purchase $3,000 worth of Apple gift cards for clients, scratch off the codes, and email them back. Though it felt suspicious, the message came from the boss's name amid the hectic holiday rush. By the time she verified, the gift cards were gone, the scammer disappeared, and the company suffered the loss.

This scam was costly, but others can be far more destructive. That same month, Orion S.A., a chemical manufacturer in Luxembourg, fell prey to a far deadlier fraud. An employee received what appeared to be legitimate email requests for wire transfers—from trusted partners or colleagues. These urgent, routine-looking emails prompted the employee to initiate multiple transfers without hesitation.

The outcome? $60 million funneled straight into cybercriminals' hands—over half the company's annual profit vanished through fraudulent wire transfers.

If you believe your small business is too insignificant to attract scammers, reconsider. Gift card scams alone cost businesses more than $217 million in 2023, and business email compromise attacks made up 73% of all cyber incidents in 2024. The holiday season is prime territory for fraudsters who exploit your team's distraction, stress, and increased transaction volume.

5 Critical Holiday Scams Your Employees Must Recognize (Before They Drain Your Funds)

1. "The Boss Needs Gift Cards" Scam (The $3,000 Text Fraud)

• The Scam: Impersonators pose as company leaders, pressuring staff to buy gift cards for "clients" or "employee rewards." In Q1 2024, nearly 38% of business email compromise cases involved gift card fraud.
• How to Prevent: Implement a strict policy requiring two approvals before any gift card purchase. Train employees that executives will never request gift cards via text.

2. Invoice and Payment Fraud (The Massive Money Heist)

• The Scam: Crooks send fake "updated bank details" or hijack vendor email conversations just as year-end bills come due. In June 2024, Arlington, MA, lost almost half a million dollars through this tactic.
• How to Prevent: Always verify banking changes by calling a known, trusted phone number—not the one listed in the email. Enforce a "phone call rule" for all payments over $5,000.

3. Fake Delivery Alerts

• The Scam: Phishing emails or texts pretending to be from UPS, FedEx, or USPS urge recipients to "reschedule delivery" via malicious links.
• How to Prevent: Encourage staff to manually type carrier websites into their browsers and bookmark official tracking pages to avoid clicking fraudulent links.

4. Malicious Holiday Party Attachments

• The Scam: Emails containing attachments like "Holiday_Schedule.pdf" or "Party_List.xls" deliver malware when opened.
• How to Prevent: Disable macros, scan all attachments thoroughly, and promote a culture where unexpected files are verified before opening.

5. Fake Holiday Fundraisers

• The Scam: Phishing sites impersonate charities or counterfeit "company match" drives to steal money and personal information.
• How to Prevent: Distribute an approved list of charities and require all donations to be processed through official company portals.

Why These Attacks Succeed (And How to Defend Your Business)

The very tools that streamline business—email, online banking, digital payments—are exploited by cybercriminals. These scams aren't your typical "Nigerian prince" emails; they are sophisticated, blending social engineering with detailed company research.

Regular phishing simulations reduce risk by 60%, yet most small businesses neglect employee training. Multifactor authentication prevents 99% of unauthorized access but many companies still rely solely on passwords.

Your Essential Holiday Cyber Defense Checklist

Prepare your team before the holiday rush with these key steps:

• The Two-Person Rule: Require verbal confirmation via a separate channel for any transactions above your set limit.
• Gift Card Policy: Establish in writing that gift cards are never purchased through email or text requests.
• Vendor Verification: Validate all banking or payment changes by phone, using numbers already on record.
• Multifactor Authentication: Enable MFA on all email, banking, and cloud platforms.
• Holiday Awareness Training: Educate your team on these five prevalent scams using real-life examples.

The True Cost: Beyond Financial Loss

While Orion's spectacular $60 million loss grabbed headlines, smaller businesses often bear even more painful hidden costs:

• Business operations stagnate during critical peak seasons.
• Staff productivity plummets as teams scramble to recover.
• Customer trust evaporates if client data is compromised.
• Insurance premiums soar following cyber incidents.

The average business email compromise cost is $129,000 per incident—enough to break many small enterprises at the worst time.

Keep Your Holidays Joyful and Secure

The holiday season should focus on growth and celebration—not expensive fraud recovery. A quick team briefing, clear policies, and layered security defenses are your best defenses to keep scammers at bay.

Remember: The Orion employee's single verification call could have prevented a $60 million loss. With the right knowledge and simple safeguards, your business can dodge becoming the next cautionary example.

Ready to secure your team before the New Year? Click here or call us at (619) 349-5850 to book a 15-Minute Discovery Call. We'll guide you through quick, effective steps to protect your business. This holiday season, give your company the greatest gift: peace of mind.