Holiday Fraud Prevention: How NC, SC & VA Businesses Can Avoid Six-Figure Losses

The Better Business Bureau (BBB) serving Eastern Carolinas reported a 50% increase in gift card scam reports compared to last year. Victims in North Myrtle Beach, SC and Cary, NC shared stories of losing money after being tricked into buying gift cards for fake grants or online purchases. These scams often involve impostors posing as managers or sellers and asking for gift card codes via text or email. Protect your business by learning to spot these scams by putting into place holiday fraud prevention best practices.

Holiday fraud prevention 101: 5 Holiday Scams Your Employees Need to Know

“Your Boss Needs Gift Cards” (The $3,000 Text Trap)

• The scam: Impostors pose as owners or managers and pressure staff into buying gift cards for “clients” or “employee appreciation.” In Q1 2024 alone, 37.9% of business email compromise incidents were gift card schemes.
• Real-life story: Last December, an accounts payable clerk at a midsize company got an urgent text from their “CEO”: Buy $3,000 worth of Apple gift cards for clients, scratch the backs and email the codes. It sounded odd, but the request came from the boss, and it was peak holiday chaos. By the time she double-checked, the cards were gone, the scammer had cashed out, and the business had eaten the loss.
• Prevention: Enact a holiday fraud prevention policy, like this one. No gift cards without two approvals. Train employees that executives will never request them via text.

Invoice & Payment Switch-Ups (The Big Money Play)

• The scam: Fraudsters send “updated banking details” or hijack vendor email threads right when year-end bills are due.
• Real-life story: At Orion, a Luxembourg-based chemical manufacturer, an employee received what appeared to be routine email requests for wire transfers—from a trusted colleague. The requests seemed legitimate, urgent, and aligned with normal business operations. Without hesitation, the employee processed multiple transfers as instructed. The result? Sixty million dollars sent directly to cybercriminals, more than half the company’s annual profits gone in a series of fraudulent wire transfers.
• Prevention: Make sure your holiday fraud prevention guidelines state employees must confirm any banking changes with a known phone number, never the one in the email. Adopt a “phone call rule” for all financial changes over $5,000.

Fake Shipping & Delivery Notices

• The scam: Phishing emails or texts pose as UPS/FedEx/USPS with links to “reschedule delivery.”
• Prevention: Begin holiday fraud prevention training that teaches staff to type the carrier’s site directly into the browser. Bookmark official tracking pages to avoid clickbait links.

Malicious “Holiday Party” Attachments

• The scam: Emails with attachments like “Holiday_Schedule.pdf” or “Party_List.xls” that install malware when opened.
• Prevention: Block macros, scan attachments, and make verifying unexpected files part of your holiday fraud prevention tactics.

Bogus Holiday Fundraisers

• The scam: Phishing sites mimic charities or fake “company match” campaigns to steal money or data.
• Prevention: Share an approved charity list and require all donations to flow through official portals.

Why These Attacks Work (And How to Stop Them)

The same tools that make business efficient—email, online banking, digital payments—are exactly what scammers exploit. These aren’t “Nigerian prince” emails. They’re sophisticated attacks blending social engineering with research on your company.

Organizations that run regular phishing simulations reduce risk by 60%, yet most small businesses never train employees. Multifactor authentication blocks 99% of unauthorized logins, but many firms still rely on passwords alone.

Your Holiday Fraud Prevention Checklist

• The Two-Person Rule: Any transaction above your set threshold requires verbal confirmation through a separate channel.
• Gift Card Policy: Put in writing: No gift cards via email or text.
• Vendor Verification: Confirm all banking or payment changes by phone using numbers already on file.
• Multifactor Authentication: Enable MFA on all email, banking, and cloud accounts.
• Holiday Awareness: Brief your team on these five scams with actual examples.

The Real Cost: More Than Just Money

While Orion’s $60 million loss made headlines, the hidden costs often hit small businesses harder:

• Operations grinding to a halt during peak season.
• Productivity lost as staff scramble on cleanup.
• Compromised client data erodes customer trust.
• Insurance premiums spiking after a cyber incident.

The average loss per business email compromise incident is $129,000—enough to sink many small businesses at the worst possible time of year.

Keep Your Holidays Merry, Not Messy

The holidays should be about growth and celebration, not cleaning up wire fraud. A staff huddle, a handful of smart holiday fraud prevention policies, and a few layered protections go a long way toward keeping criminals out of your books.

Remember, the employee at Orion could have stopped a $60 million loss with a single verification phone call. With the right awareness and simple checks, your business can avoid being the next cautionary tale.

Do you want to ensure that your team is secure before the New Year? Book a 15-minute discovery call with us and we’ll walk you through quick, practical holiday fraud prevention steps to keep your business safe. Because the best gift you can give your business this holiday season is peace of mind.

Local Service Area & Contact

Intelligent Technologies, Inc.
20 Oak Branch Dr., Ste. D, Greensboro, NC 27407
336-315-3935
Service Area: Greensboro, Winston-Salem, Raleigh, Charlotte, Wilmington, Greenville, Spartanburg, Columbia, Danville, Martinsville, Lynchburg and surrounding areas.

Holiday Fraud Prevention FAQs