The holiday season is a time for joy, connection, and celebration. Unfortunately, it’s also a prime time for scammers and cybercriminals looking to take advantage of businesses and individuals alike. As employees take time off, online shopping increases, and inboxes fill with seasonal emails, the risks of cyberattacks, fraud, and identity theft rise significantly.
The IRS recently issued a warning as part of its 9th Annual National Tax Security Awareness Week, emphasizing the need for vigilance during this high-risk period. Both business owners and employees should be aware of potential threats and take proactive steps to protect themselves and their sensitive financial information.
Here’s what you need to know about holiday-season cybersecurity risks—and how to avoid becoming a victim.
Why Cyber Threats Spike During the Holiday Season
The holiday season creates a perfect storm for cybercriminals. Here’s why:
- Increased online activity: More people are shopping, clicking email promotions, and logging into financial accounts, giving scammers more opportunities to launch phishing attacks.
- Distractions and time off: Employees may be distracted or out of the office, which can lead to missed security warnings or delayed responses to potential threats.
- Year-end financial tasks: Businesses are busy with payroll, year-end financials, and tax preparation, making it easy for fraudulent invoices or phishing scams to slip through the cracks.
- Heightened emotions: Holiday-related scams often prey on emotions like generosity or urgency, making people more likely to fall for fake charity requests or urgent payment demands.
Cybersecurity Threats to Watch For
Whether you’re a business owner, an employee, or a consumer, here are some of the most common scams and threats to be aware of this season.
For Businesses
- Business Email Compromise (BEC) Scams: Cybercriminals impersonate executives, vendors, or business partners to trick employees into making wire transfers or providing sensitive information. These attacks often increase during the holidays as employees may be less alert or rushing to complete year-end tasks.
- Phishing Emails and Text Messages: Hackers send fraudulent emails or texts that look like they’re from trusted sources, such as banks, delivery companies, or suppliers. These messages often contain links or attachments designed to steal login credentials or install malware on your devices.
- Ransomware Attacks: Cybercriminals use ransomware to lock businesses out of their systems, demanding payment in exchange for access. Small and mid-sized businesses are especially vulnerable if they often don’t have strong data backups or recovery plans in place.
- Fake Invoices or Payment Requests: Fraudsters may send fake invoices that appear legitimate, tricking employees into making payments. These invoices are often disguised as legitimate bills from known vendors or payment requests from executives.
For Individuals
- Tax Scams: The IRS warns that criminals often pose as IRS agents or tax preparers, threatening people with audits, fines, or jail time if they don’t “pay immediately.” Scammers may also steal Social Security Numbers (SSNs) and file fraudulent tax returns.
- Charity Scams: During the season of giving, scammers create fake charity websites or email campaigns designed to steal donations or personal information. They play on people’s generosity, especially after major natural disasters or world events.
- Online Shopping Scams: Fraudulent websites and fake social media ads offering too-good-to-be-true holiday deals are rampant this time of year. These scams often result in financial loss or stolen payment information.
- Fake Delivery Notifications: With so many holiday packages in transit, scammers send text messages or emails claiming there is an issue with your package. Clicking the link may install malware or trick you into providing personal information.
How to Protect Your Business and Personal Data
While the threats are real, there are proactive steps you can take to reduce your risk. Here’s how to stay safe this holiday season.
For Business Owners and Managers
- Educate Your Employees
- Train employees to recognize phishing emails and text messages.
- Remind them not to click on links or download attachments from unknown sources.
- Enable Multi-Factor Authentication (MFA)
- Require MFA for business accounts, payroll software, and tax-related software. This adds a second layer of protection even if login credentials are stolen.
- Strengthen Passwords and Use a Password Manager
- Require employees to use strong, unique passwords for business systems and client portals.
- Encourage the use of password management software to reduce reliance on “easy-to-remember” but insecure passwords.
- Verify Payment Requests
- Implement a multi-step verification process for large payments, especially wire transfers.
- Require employees to confirm payment requests with a supervisor before sending funds.
- Back Up Your Data
- Regularly back up all company data and store it in a secure, off-site location.
- Make sure backups are encrypted to prevent ransomware from corrupting them.
- Keep Systems and Software Up to Date
- Apply software updates and patches as soon as they become available.
- Outdated systems are a prime target for ransomware attacks.
For Individuals and Families
- Beware of Phishing Emails and Fake Delivery Notifications
- If you receive a delivery notification, go directly to the retailer or carrier’s website instead of clicking the link in the message.
- Report suspicious emails to your email provider or employer.
- Secure Your Devices and Networks
- Enable password protection or biometric authentication on your devices.
- Use a Virtual Private Network (VPN) when accessing public Wi-Fi.
- Use Credit Cards Instead of Debit Cards
- Credit cards offer stronger fraud protection than debit cards, and you can dispute fraudulent charges.
- Be Cautious About Charity Donations
- Verify charities before making donations using trusted websites like CharityNavigator.org.
- Never give to a charity via text message unless you’re 100% certain it’s legitimate.
What to Do If You’ve Been Scammed
If you think you’ve fallen victim to a scam, act quickly:
- For Businesses: Contact your IT team or cybersecurity provider immediately to contain the damage. If financial data or payments are involved, contact your bank.
- For Individuals: Report tax-related scams to the IRS at irs.gov/report-phishing. If your credit card or bank information has been stolen, notify your financial institution and monitor your accounts for suspicious activity.
Stay Protected This Holiday Season
Cybersecurity threats increase during the holidays, but with preparation and awareness, you can protect your business, your family, and your finances. By training employees, using multi-factor authentication, and verifying payment requests, business owners can minimize their exposure to holiday-related scams.
For individuals, vigilance is key. Be wary of delivery notifications, fake charity solicitations, and fraudulent IRS calls. Simple actions like using a VPN, securing your devices, and monitoring your bank accounts can prevent costly mistakes.