’Tis the holiday season, and businesses in Canada are facing their busiest time of the year. However, just as many businesses are focused on finishing the year strong, scammers are also ramping up their efforts, with the holiday rush creating a perfect storm for cybercrime.
Scammers often target small and medium-sized businesses (SMBs) during this time of year, knowing that employees may be distracted by increased orders, year-end accounting, or seasonal promotions. In this post, we’ll show you how to spot these deceptive tactics and ensure your business isn’t caught off guard.
Holiday scams to watch out for and how to protect your business against them
Here are some common cyberthreats this season and how to easily spot them before they cause harm:
Too-good-to-be-true holiday deals
During the holidays, cybercriminals typically create fake websites or send emails claiming to offer huge discounts on popular products or services. These fake deals may seem tempting, especially when they promise something you’ve been wanting at an unbeatable price. However, they often lead to nothing but stolen payment information or malware downloads.
Tip: Before clicking on any links or purchasing from unfamiliar websites, double-check the legitimacy of the offer. Look for clear contact details, verify the website’s authenticity (check for "https" in the URL and security certificates), and read reviews from trusted sources or previous customers. Cross-reference prices with other reputable retailers as well. If a deal seems incredible, it's likely not legitimate.
Mysterious holiday charity request
Fraudsters love to exploit people’s generosity. They may impersonate a charitable organization and request donations, often claiming to need funds for urgent causes such as providing disaster relief or helping the less fortunate. While there are many legitimate charities during the holidays, scammers will use this guise to steal your hard-earned money.
Tip: Always verify the charity before donating. Check their registration with the Canada Revenue Agency or use trusted platforms such as Charity Data to know if the organization is legitimate. Better yet, donate directly through a charity’s website rather than through an unsolicited email or phone call.
Phony invoices and urgent requests
The holiday season often brings increased business activity, and scammers take advantage of this by sending fake invoices, usually purporting to be from suppliers or service providers. They may create a sense of urgency by saying things like "pay immediately to avoid late fees" or "grab our last-minute holiday offers." If you’re not careful, you might unknowingly authorize a payment to a scammer.
Tip: Implement a policy to verify all invoices, especially those that seem unusual or unexpected, with a phone call to the sender’s company. Also, you should set up a process where payments require approval from multiple team members or departments to help identify fraudulent requests.
Holiday electronic gift card scam
E-gift cards are a popular holiday gift, so fraudsters use them to their advantage. They impersonate trusted contacts, such as colleagues or business partners, to trick you into purchasing gift cards. They might even claim an urgent situation or offer a special reward, pressuring you to buy cards and share the card codes with them. Once you do, the scammers quickly redeem the gift cards before you realize it’s a scam, and your money is lost.
Tip: Establish a no-gift card policy for business transactions. If you choose to use gift cards for employee rewards or holiday gifts, establish a strict process for purchasing them exclusively from reputable sources.
Phishing email or SMS
Phishing scams are rampant during the holidays. Fraudulent emails or text messages will often look like they’re from reputable sources — banks, vendors, or online retailers — offering discounts, shipping updates, or account alerts. However, these messages are designed to lure you into providing sensitive information (e.g., credit card numbers or passwords).
Tip: Be wary of unsolicited messages, especially those with attachments or links. Look for generic greetings (“Dear customer”) or strange email addresses. Also, never click on any links or download attachments from unknown senders. If in doubt about a message’s veracity, contact the purported sender through verified communication channels or visit the company’s official website directly.
This holiday season, a little caution goes a long way
As an SMB owner, keeping your company’s sensitive data and finances secure is paramount. Protect your business from holiday scams by following these practical steps:
- Enhance security with multifactor authentication: Requiring multiple forms of identification makes it significantly harder for unauthorized individuals to gain access to sensitive information.
- Maintain robust cybersecurity software: Keep your antivirus and firewall software up to date to effectively block malicious websites and emails.
- Empower your team with cybersecurity awareness: Train your employees to identify and report common scams. Keep them informed about the latest tactics cybercriminals use.
- Use only secure payment methods: Opt for trusted and well-established payment methods for all business transactions. Exercise caution with wire transfers and gift card payments, and verify the recipient's authenticity before proceeding.
By following these precautions and staying vigilant, you can safeguard your business from fraudsters looking to take advantage of the holiday season.
If you need additional cyber protection or guidance, XBASE Technologies can help. As Canada’s top business technology provider, we offer comprehensive cybersecurity solutions to keep your systems secure all year round. The best part? We can customize our services and strategies to address your specific cybersecurity needs. Stay steps ahead of the bad guys — partner with XBASE today.