The holiday season creates the perfect conditions for fraud. High transaction volumes make suspicious activity easier to hide, temporary staff may not recognize red flags, and the pressure to keep things moving can override careful review. Understanding the most common holiday scams and implementing best practices can help safeguard your business during this critical season.

Here's what you need to know about holiday fraud and how you can better safeguard your business:

Common holiday fraud schemes targeting small businesses

Holiday vendor email scams. You receive an email from what appears to be a regular supplier asking for "updated payment information for year-end processing." The timing seems reasonable, many vendors do update systems at year-end and you're rushing to close out accounts before the holidays. You update the payment details, and your next invoice payment goes straight to a fraudster's account.

Gift card scams. An employee receives an urgent message appearing to be from company leadership: "I'm in meetings all day preparing for our holiday event. I need you to purchase gift cards for client gifts immediately and send me the codes. Don't mention this to anyone—it's a surprise." This fraud tactic is particularly effective during the holidays when gift-giving is expected.

Shipping notification phishing. Employees receive emails appearing to be from UPS, FedEx or USPS about delayed holiday deliveries or packages requiring additional information. These messages seem even more legitimate during the holidays. Clicking the link or downloading the attachment installs malware or steals login credentials.

Year-end invoice fraud. During the holiday rush, you might receive invoices from companies you don't recognize—or that look similar to actual vendors. Fraudsters count on busy business owners paying invoices quickly without thorough verification, especially when dealing with seasonal suppliers or temporary staff.

Check fraud during holiday mailing. With increased mail volume, checks get intercepted more easily. Fraudsters know businesses are mailing more payments, sending holiday bonuses and processing vendor checks before year-end closures. Stolen checks get washed and rewritten before you even realize they're missing.

How to help protect your business

The most effective fraud prevention combines smart policies with the right Treasury Management and banking tools. Here are some best practices you can implement.

Establish a callback system. Before processing any payment instruction changes, require employees to verify the request directly with the vendor using a phone number from your existing records—never the number provided in the email. This simple step prevents most business email compromise schemes.

Implement dual controls. Require two employees to approve any wire transfers, ACH payments or significant checks. This creates a check-and-balance system that catches fraudulent requests before money leaves your account. Make this policy non-negotiable, even during busy periods.

Train your team. Educate all employees, especially seasonal workers, about common fraud tactics. Teach them to recognize red flags like urgent requests, unusual payment instructions or pressure to bypass normal procedures.

Use positive pay services. Check Positive Pay becomes even more valuable during the holidays when you're issuing more checks and may not review your accounts as frequently. This service automatically flags checks that don't match your records, which can significantly reduce check fraud risk and provide greater peace of mind during high-volume periods.

Adopt ACH positive pay. Consider using ACH Positive Pay for electronic payments and implementing account controls that restrict transaction types, amounts, and timing. These Treasury Management solutions can add layers of protection without slowing down legitimate business operations.

Be skeptical of holiday urgency. Fraudsters weaponize the calendar. "We need this before we close for the holidays" or "This must be processed before year-end" creates artificial pressure. Legitimate vendors and colleagues understand verification is necessary, even during busy seasons.

Final thoughts

The holidays should be your business's most profitable time, not its most vulnerable. By understanding how fraudsters exploit the season and implementing protective measures now, you can help protect your business during the busiest time of year.

Remember: fraudsters rely on urgency and distraction. Slowing down to verify requests and following established procedures—even when things get hectic—is your best defense.

Ready to strengthen your fraud protection before the holiday rush? At National Bank of Arizona, our Treasury Management team can help you assess your current fraud prevention measures and implement solutions tailored to your business needs. Contact us today to discuss how we can help keep your business secure.