Cybersecurity Threats Rising for UK SMBs This Festive Period

1. Why Cybersecurity Threats Increase During the Festive Period

2. The Most Significant Cybersecurity Threats Expected to Rise This Festive Period

3. Real UK Examples Highlight the Scale of the Threat

4. UK Cybercrime Trends During the Festive Period

5. What UK SMBs Should Prioritise Now

6. How Blue Saffron Supports UK SMBs

7. Frequently Asked Questions (FAQs)

The festive period creates the perfect conditions for cyber criminals. Activity typically begins to rise around Black Friday, when online transactions increase sharply, and continues through December as teams become stretched, staff take annual leave and year-end processes intensify. The National Cyber Security Centre reported that UK victims lost over £10 million to online scams in the run-up to Christmas 2024, with phishing and impersonation attacks rising significantly from late November onwards (source: NCSC).

The UK Cyber Security Breaches Survey 2024 also found that 50% of UK businesses had experienced a breach or cyber attack in the previous 12 months. Phishing, business email compromise and invoice fraud remain the most common entry points, with criminals increasingly tailoring attacks to seasonal behaviours and peak trading patterns.

For SMBs in recruitment, accountancy and HR consulting, festive season pressures — contractor payroll, invoicing surges, compliance deadlines and reduced IT coverage — create ideal conditions for criminals. These operational factors make professional services firms particularly attractive targets: one compromised mailbox or payment request can cause significant financial and reputational damage.

Payroll Redirection Fraud

Criminals impersonate employees or contractors and submit urgent bank detail changes shortly before payroll deadlines. These requests are often highly convincing and time-sensitive.

Invoice Redirection & Supplier Impersonation

Attackers intercept communications and alter invoice bank details or impersonate suppliers, exploiting the heavy volume of year-end invoicing.

Compromised Microsoft 365 Accounts

Credential harvesting and business email compromise (BEC) remain the primary route into SMBs. Once inside, attackers can monitor conversations, create forwarding rules and issue fraudulent payment requests.

Spear Phishing & Leadership Impersonation

Senior leaders and finance teams receive targeted emails requesting urgent transfers, approvals or document releases. Reduced staffing makes these attacks more likely to succeed.

Ransomware

Cyber criminals frequently time ransomware attacks for weekends and bank holidays — including Christmas Eve, Boxing Day and New Year’s Eve — when response times are slower.

Weak Remote & Hybrid Working Controls

Unpatched VPNs, unsecured home networks and shared devices increase risk during December when hybrid working is more common.

Cyber attacks around the festive period are not theoretical. Several high profile UK organisations have suffered serious incidents that either happened just before Christmas or directly impacted Christmas trading, and the same patterns affect smaller businesses.

Arnold Clark Christmas Cyber Attack

In December 2022, Glasgow based car retailer Arnold Clark was hit by a major cyber attack on 23 December. The company had to shut down systems across the UK on Christmas Eve to protect its network and later confirmed that customer personal data had been stolen. STV News

Morrisons Cyber Incident That Dented Christmas Sales

In November 2024, a cyber attack on the technology provider Blue Yonder disrupted UK supermarket Morrisons. The incident forced Morrisons to shut down its warehouse management system, which reduced visibility of fresh stock for several days and ultimately dented Christmas quarter sales. Reuters

Although Morrisons is a large retailer, the pattern is the same for SMBs. An attack that lands in November or December can easily undermine the most important trading period of the year.

Co-Op Supply Chain Attack And Festive Products

A cyber attack on Co-op in early 2025 disrupted internal ordering systems so severely that some stores were still selling festive products months later — showing how even early-season attacks can affect operations long after Christmas.

This example shows that even when an attack does not fall exactly in December, the operational and reputational impact can carry through multiple seasons.

The following national trends highlight how fraud and cybercrime intensify during the winter season:

Retail Cyber Attacks Rise During Christmas

A review drawing on NCSC data found a 32% increase in cyber attacks on UK retailers during Christmas 2023, driven largely by phishing and ransomware.

Action Fraud Reports Sharp Seasonal Increases

Action Fraud recorded £224 million in losses and nearly three million phishing emails between November 2023 and January 2024.

These trends mirror what Blue Saffron consistently sees across our SMB clients: cybercriminals intensify their activity during the festive-season rush, when businesses are stretched and distractions are at their peak.

The festive period is a high-risk window, but SMBs can significantly reduce their exposure by focusing on a handful of high-impact priorities. These actions don’t require major investment — but they do dramatically strengthen your cybersecurity resilience.

1. Check Your Microsoft 365 Security Settings

Most UK SMB attacks now begin in Microsoft 365, so reviewing your configuration is the fastest way to reduce risk.

Key checks include:
• ensuring MFA is enabled for every user, including directors and finance teams
• reviewing mailbox forwarding rules (a common sign of compromised accounts)
• removing dormant users and accounts belonging to past contractors
• checking your admin accounts are secured separately
• tightening external sharing permissions in SharePoint and OneDrive

A quick review of these settings can block a significant percentage of phishing-based attacks.

2. Strengthen Email Protection for High-Risk Roles

Finance, payroll, HR and leadership inboxes are the most targeted during the festive period.

SMBs should:
• activate anti-spoofing settings (SPF, DKIM and DMARC)
• block file types commonly used for malware (e.g. .html, .exe, .iso)
• implement additional filtering for supplier-related emails
• set up alerts for unusual login behaviour

If your business processes contractor timesheets, invoices or expense claims, these protections are essential.

3. Validate Your Backups — Don’t Assume They Work

Many SMBs believe their backups are running correctly, but haven’t tested them recently.

As ransomware attacks continue to rise, businesses should:
• test restoring at least one file from backup
• check backup retention policies meet cyber-insurance requirements
• ensure backups are stored separately from the main network
• confirm cloud storage is versioned, preventing malicious overwrites

Even a simple restore test can expose hidden issues before they become expensive problems.

4. Run a Short Festive-Period Staff Awareness Update

The festive period introduces very specific scams: fake delivery notifications, charity appeals, payroll emails and seasonal supplier impersonation.

A 10–15 minute refresher session (or even a short internal email) should include:
• how to spot year-end payment scams
• how to verify supplier bank details
• what to do if an email feels suspicious
• common festive-season themes attackers exploit
• how to report phishing attempts quickly

This small action dramatically reduces human-error risk.

5. Review Remote Access and Hybrid Work Controls

With many staff working from home during December, SMBs should ensure:
• VPNs are fully patched
• remote desktop protocols (RDP) are disabled or secure
• home workers use MFA on business accounts
• only authorised devices can access sensitive systems
• password managers are mandated for all staff

These measures close off the weak points attackers often scan for at this time of year.

6. Carry Out a Festive-Period IT Health Check

This is the single most effective way to build confidence before the festive rush. A targeted assessment ahead of December can identify vulnerabilities, prioritise fixes and strengthen your defences before threat levels peak.

Blue Saffron specialises in supporting UK SMBs — particularly recruitment firms, accountancy practices and HR consultancies — throughout the heightened-risk festive period. Our Festive-Period IT Health Check focuses on Microsoft 365 security, email protection, backups, identity controls and end-user risk, giving you a clear, actionable picture of your cybersecurity posture going into the new year.

If you want confidence your business is prepared, you can learn more or request an assessment here.

What cybersecurity threats increase during the festive period?

Phishing, payroll fraud, invoice redirection scams, Microsoft 365 account compromises and ransomware are the most common threats that rise around December and January.

Why are UK SMBs particularly vulnerable to cybersecurity threats?

Many SMBs operate with smaller teams and limited in-house IT support, especially during seasonal leave, making it easier for attackers to exploit gaps.

How can businesses reduce their risk of phishing attacks?

Enforce MFA, schedule refresher training, and implement strong email filtering and anti-spoofing protections.

Are recruitment and professional services more likely to be targeted?

Yes. These sectors frequently handle financial transactions, payroll data and identity documents — all highly valuable to cyber criminals.

What should UK SMBs do if they experience a cyber attack?

Isolate affected systems, contact IT support immediately, report the incident to the NCSC and notify clients if data may be at risk.

How often should cybersecurity reviews take place?

At least twice a year, with additional checks during high-risk periods such as the festive season.