The holiday season is a bustling and festive time, particularly for retail businesses, as customers flock to stores and websites in search of the best deals. However, the holidays also create the perfect opportunity for cybercriminals to exploit organizations. As businesses focus on meeting increased customer demands, they often become more vulnerable to cyberthreats that can cause significant damage.
Staying aware of these threats can help you better protect your business from potential harm.
Why do cyberthreats spike during the holidays?
Several factors contribute to the increase in cyberthreats during the holiday season:
- Heightened business pressure: Businesses are focused on maximizing sales and fulfilling orders, which can push cybersecurity down the priority list.
- More online transactions: The holiday shopping surge leads to more online transactions, giving cybercriminals more opportunities to exploit vulnerabilities in eCommerce systems.
- Holiday distractions: The holiday rush makes both employees and customers more likely to act hastily, overlooking warning signs and becoming vulnerable to scams and attacks. Additionally, with employees on vacation, those remaining often take on additional responsibilities, leading to further distractions.
Together, these factors create the perfect environment for cybercriminals to target both businesses and individuals.
Top holiday cyberthreats
Of the cyberthreats targeting businesses and customers during the holiday season, the following are the most notable:
Spear phishing attacks
Spear phishing is a targeted cyberattack where cybercriminals send deceptive emails aimed at getting recipients to divulge sensitive information. Unlike generic phishing attempts, these emails are highly personalized, often appearing to come from trusted vendors or even high-ranking executives within the company. They use familiar language and industry-specific terms to appear legitimate.
Successful spear phishing attacks can lead to data breaches or financial losses, as employees may unknowingly disclose login credentials or other confidential data.
Gift card fraud
When impersonating company executives or colleagues, cybercriminals may attempt to pressure employees into urgently purchasing gift cards, typically citing time-sensitive situations. Once the employee buys the cards and shares the codes, the cybercriminal redeems them, resulting in a financial loss for the company.
Automated retail bot attacks
Retail bots are automated programs that rapidly purchase large quantities of high-demand products from eCommerce websites, especially during major shopping events such as Black Friday or Cyber Monday. The people behind these bots then resell the items at inflated prices. As a result, customers become frustrated, and retailers suffer reputational damage due to the perceived lack of stock.
Product scarcity scams
During the holidays, high-demand products such as electronics, toys, and designer goods often sell out quickly. Cybercriminals exploit this scarcity by creating fake websites or social media ads that offer these items at unrealistically low prices. Victims pay for products that never arrive and are left with no option for a refund. Worse, by sharing financial information, victims also open themselves up to the risk of fraud and identity theft.
Account takeovers
Using stolen login credentials or cracking weak passwords, attackers take control of a target’s account. At that point, they can make unauthorized purchases, steal personal information, or damage the company’s reputation.
Holiday malvertising
Malvertising involves embedding malicious software in online ads. During the holidays, cybercriminals target high-traffic websites with these ads. When users click on them, ransomware or another type of malware is downloaded to their devices, compromising personal or business data.
Fraudulent charities
The holiday season is a time of giving, but unfortunately, cybercriminals take advantage of this spirit by setting up fake charity websites. These sites mimic legitimate organizations to deceive individuals into donating money or divulging personal information.
How to secure your business against holiday cyberthreats
To protect your business, take the following steps:
- Implement bot detection tools: Use tools to detect and block automated bots from purchasing high-demand products.
- Educate your employees: Regularly train your employees to recognize phishing emails, fraudulent gift card requests, fake websites, and other common cyberthreats.
- Establish device usage policies: If employees use company devices and workstations, instruct them to limit personal activities, such as shopping or holiday preparations, on these devices to reduce exposure to holiday scams.
- Tighten your password policies: Require strong, unique passwords for all business accounts and enable multifactor authentication for another layer of protection against unauthorized access.
- Monitor transactions: Closely track transaction patterns, especially during busy sales events. Unusual activity, such as large gift card purchases or quick sell-outs of popular products, may indicate fraudulent behavior.
- Update all software: Make sure all business software programs, particularly eCommerce and payment systems, are up to date with the latest security patches. Cybercriminals often target outdated software to breach systems.
- Verify charitable donations: Donate only through organizations registered with the IRS or local government agencies. You can also look for charities listed on well-known charity evaluators such as Charity Navigator or GuideStar. Be cautious of red flags, such as charities that pressure for immediate donations, lack clear contact information, or refuse to disclose how funds will be used.
- Partner with experts: Safeguard sensitive business and customer information by partnering with experts who offer robust data protection solutions that many businesses cannot maintain in house.
Stay protected this holiday season
The holidays should be a time of joy, not cybersecurity worries. Fortunately, by taking proactive steps now, you can safeguard your business and enjoy the season with confidence.
If you need assistance in strengthening your cybersecurity defenses, contact Liberty Center One today. We’re here to help you stay safe throughout the holiday season.