Protect Your Business from Year-End Scams

Published on December 1, 2025 | Webster Bank

As the year draws to a close, many businesses are focused on wrapping up financials, paying vendors, processing bonuses, and preparing for tax season. Unfortunately, cybercriminals know this too—and they often ramp up their efforts to take advantage of the busy year-end period.

Here’s what businesses need to know to stay safe from common scams this time of year:

1. End-of-Year Tax and Accounting Imposter Scams

Cybercriminals may impersonate the IRS, accounting firms, banks, or payment processors to trick businesses into sharing tax forms, bank credentials, or Social Security numbers.

How to protect your business:

• Remember that the IRS will never email, text, or call to demand payment or request personal information.
• Banks, payment processors and other vendors will NOT ask you for one-time passcodes. Do not share them.
• Use secure, encrypted channels when exchanging financial documents.
• Keep your accounting software and systems up to date.

2. Invoice and Payment Scams

Fraudsters frequently send fake invoices that look legitimate, often impersonating known vendors or service providers. The scammer might slightly alter an email address or bank account number so payments are redirected to them instead of your actual vendor.

How to protect your business:

• Always verify changes in payment instructions by calling a trusted contact.
• Reconcile invoices carefully against purchase orders and delivery records.
• Train employees to look closely at sender email addresses and URLs.

3. Business Email Compromise (BEC)

This high-impact scam occurs when a fraudster impersonates an executive or employee—often via a hacked or spoofed email account—and requests an urgent wire transfer or change in payroll details.

How to protect your business:

• Require dual authorization for all outgoing payments or wire transfers.
• Confirm requests for fund transfers using a secondary communication channel, such as a phone call.
• Educate employees to pause and verify before acting on “urgent” financial requests.

4. Charity and Gift Card Scams

During the holidays, scammers often pose as charities or partners asking for year-end donations or gift card purchases for “employee rewards.”

How to protect your business:

• Research charitable organizations before donating.
• Never purchase gift cards based on unsolicited requests, even if the message appears to come from a senior executive.

5. Payroll and HR Scams

In these scams, criminals impersonate employees and request direct deposit changes right before payday. Once the employer updates the payroll information, the employee’s paycheck is diverted to the fraudster’s account.

How to protect your business:

• Require in-person or phone verification for any payroll or HR changes.
• Encourage employees to report suspicious messages immediately.

Stay Vigilant Going into the New Year

Fraudsters target businesses of all sizes, and year-end is a particularly active times for scams.  Taking a few extra steps to verify transactions and educate your team can help prevent costly disruptions.

If you ever receive a suspicious message or request related to your Webster business account, contact your Webster Relationship Manager, or call our Client Contact Center at 800.482.2220 immediately. We’re here to help you keep your operations secure.

We hope these tips help you finish the year strong and start the next one with confidence.