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The holiday season should be about ringing in sales, not alarm bells. But while you are decking the halls and managing the busiest shopping days of the year, cyber grinches are plotting to steal more than just your holiday cheer. From phishing scams disguised as shipping updates to fraudulent transactions slipping through during the rush, the festive season is a prime hunting ground for fraudsters.. If you think cybercrime takes a holiday, think again.
In the first half of 2024, Canadians reported more than 41,000 cybercrimes, with 56 per cent involving fraud. The Canadian Anti-Fraud Centre also reported 15,941 victims of fraud between January and June 2024, resulting in $284 million in losses. And these are just the reported cases—many more go unreported due to embarrassment or lack of awareness.
Cybercrime is not just a tech problem, it is a serious business risk. According to CIRA’s 2024 Cybersecurity Survey, 44 per cent of Canadian organizations experienced a cyberattack in the past year, and 28 per cent reported reputational damage as a result.
According to Statistics Canada, fraud incidents nearly doubled over the past decade, climbing from 260 incidents per 100,000 people in 2013 to 501 in 2023. That is a clear sign that the threat is growing, not slowing down.
Small businesses are especially vulnerable. The Canadian Federation of Independent Business (CFIB) reports that more than 50 per cent of small businesses have experienced fraud, and a staggering 85 per cent have been targeted by phishing or email scams. These attacks often succeed because of human error. Nearly 95 per cent of cybercrime stems from mistakes made by employees, according to Mastercard.
The stakes could not be higher. Nearly one in five small and medium-sized businesses would be forced to shut down permanently after a successful cyberattack. Factor in reputational damage and the loss of customer trust, and the cost of inaction becomes devastating.
And the threats are evolving. Synthetic identity fraud, where criminals create fake identities using real and fabricated data, surged 26 per cent in early 2024. Layer on AI-driven phishing and deepfake scams, and businesses face a fast-changing threat landscape.
Phishing emails
Phishing remains one of the most common cyber threats in Canada. In 2024, 34 per cent of Canadians reported receiving phishing emails, and 67 per cent of employees admitted to engaging in risky behaviours that could lead to phishing-related breaches. These emails often mimic shipping updates, donation requests or customer inquiries. One click on a malicious link can compromise your entire system.
Fake invoices and overpayment scams
Payment fraud is on the rise. A 2024 Payments Canada study found that 13 per cent of Canadians experienced payment fraud in the past six months, with 34 per cent involving impersonator contact, a common tactic in fake invoice scams. Fraudsters bank on your team being too busy to verify details, sending fake invoices or overpaying and requesting refunds before the original payment bounces.
Gift card scams
Gift card fraud is booming alongside the gift card market. In 2024, $5.7 million in losses were reported because of gift card scams in Canada, and experts warn the real number is likely much higher because only five to 10 per cent of cases are reported. Scammers often impersonate executives and pressure employees to buy gift cards urgently, a classic social engineering tactic.
Card-not-present (CNP) fraud
CNP fraud is the leading cause of credit card fraud losses in Canada, accounting for the majority of the $638 million in fraud losses reported in 2024. With online transactions spiking during the holidays, ecommerce sites are prime targets for stolen credit card data.
Train your team
Your employees are your first line of defence. Regularly train them to spot phishing emails, suspicious payment requests and social engineering tactics. Encourage a “pause and verify” culture.
Implement multi-layered security
Use multi-factor authentication (MFA) for all financial accounts and critical systems. Update your software and ecommerce platforms with the latest patches.
Secure your payment process
For in-store transactions, always use EMV chip readers. For online sales, enable Address Verification Service (AVS) and Card Verification Value (CVV) checks. These steps help verify the legitimacy of transactions and reduce chargebacks.
Note: Moneris offers advanced fraud prevention tools like Kount®, an AI-powered solution that reviews transactions in real time, reducing chargebacks by up to 90 per cent. Our 3-D Secure 2.2 adds an extra layer of authentication without slowing down checkout, keeping your customers happy and your business safe.
Monitor transactions in real time
Fraudsters move fast, so you need to move faster. Real-time monitoring and alerts can help you catch suspicious activity before it becomes a costly problem. Moneris’ fraud tools provide AI-driven, real-time monitoring, giving you peace of mind during peak season.
Set transaction limits
Flag high-risk orders, such as bulk purchases of high-value items or mismatched shipping and billing addresses, for manual review.
Back up your data
Regular backups ensure you can recover quickly from ransomware attacks or system breaches.
Review your cyber insurance
Cyber insurance can be a lifesaver, but make sure your policy covers holiday-specific risks like phishing or synthetic identity fraud.
For every dollar lost to fraud, businesses lose about $3 in total costs, including chargebacks, fees, and lost productivity. That’s a hefty price to pay for something preventable. With 77 per cent of Canadians preferring to shop from retailers with fraud protection, investing in security isn’t just smart, it’s good for business.
The holidays should be about joy, connection, and growth, not scrambling to recover from a cyberattack. By staying alert, training your team, and using advanced fraud prevention solutions, you can safeguard your business and your customers.
Remember: Cybersecurity isn’t a one-time task—it’s an ongoing commitment. Make it part of your holiday checklist, and you’ll gift your business the best present of all: peace of mind. Because nothing says “happy holidays” like a fraud-free season.
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