The week leading into Christmas is one of the most dangerous times of year for financial institutions. Holiday cybersecurity risks for banks increase sharply as staff take time off, approval chains slow down, and attackers exploit distraction, trust and urgency.
At Saturn Partners, we consistently see spikes in phishing, fraud attempts, and security incidents during the final weeks of December. Attackers know banks are operating with reduced staffing, delayed oversight, and year-end processing pressure. That combination creates opportunity.
Cyber threats do not take holidays. They wait for them.
Why the holidays increase cyber risk for banks
Holiday periods introduce operational conditions attackers rely on:
- Reduced IT and security staffing
- Slower verification and approval workflows
- Increased reliance on temporary or backup personnel
- Higher transaction volumes tied to bonuses, vendor payments, and year-end settlements
- Delayed patching and system updates
For community and regional banks, these conditions amplify existing challenges such as limited security resources and legacy systems.
External research from the Anti-Phishing Working Group shows that phishing activity regularly spikes during major holidays, with financial institutions among the most targeted sectors.
The most common holiday cybersecurity risks for banks
1. Executive and vendor impersonation scams
Holiday periods are prime time for impersonation attacks.
Attackers pose as:
- Executives traveling or on vacation
- Vendors requesting urgent payment updates
- Finance leaders asking for “quick approvals”
These messages often reference year-end deadlines or holiday closures to create urgency. When verification steps are skipped, losses follow.
2. AI-enhanced phishing during reduced oversight
AI generated phishing has changed the holiday threat landscape.
Messages now:
- Match internal tone and writing style
- Reference real vendors or internal projects
- Arrive at believable times during holiday slowdowns
With fewer eyes on inboxes, malicious emails sit longer and appear more legitimate.
3. Insider mistakes caused by fatigue and handoffs
Not all holiday risk is malicious.
Common issues include:
- Shared credentials during staff coverage
- Missed alerts or delayed responses
- Accidental data exposure due to rushed processes
These mistakes still result in regulatory and reputational impact.
4. Delayed incident response
During holiday weeks:
- Escalation paths are unclear
- Decision makers are unavailable
- Response timelines stretch longer than acceptable
Regulators do not view holidays as an excuse for delayed containment or notification.
Why regulators care about holiday cyber incidents
From a regulatory perspective, holiday incidents raise red flags around:
- Operational resilience
- Business continuity planning
- Incident response readiness
- Governance and oversight
If a bank cannot demonstrate preparedness during predictable high-risk periods, examiners may question the maturity of the entire cybersecurity program.
For a broader look at how evolving threats are shaping examiner expectations, see our related post: Banking Cybersecurity in 2025: Navigating Emerging Threats and Implementing Robust Solutions
How banks can reduce holiday cybersecurity risks
The most effective holiday risk reduction strategies are operational, not technical.
1. Lock down high-risk workflows
Before year-end:
- Require out-of-band verification for wires and ACH changes
- Freeze vendor payment changes where possible
- Enforce separation of duties even during coverage gaps
2. Strengthen authentication for critical users
Focus on:
- Executives
- Finance and treasury teams
- IT administrators
Phishing resistant authentication significantly reduces holiday attack success.
3. Clarify escalation and coverage plans
Every bank should clearly document:
- Who is on call
- How incidents escalate
- Who has decision authority
Ambiguity during holidays is a risk multiplier.
4. Increase monitoring during reduced staffing
Holiday monitoring should not scale down.
Many banks temporarily increase alert sensitivity or rely on 24/7 SOC support to maintain visibility while internal teams are smaller.
How Saturn Partners supports banks during high-risk periods
At Saturn Partners, we help banks maintain resilience during holidays and other high-risk operational windows by providing:
- 24×7 SOC monitoring calibrated for financial threats
- Executive and finance-focused phishing protection
- Incident response readiness assessments
- Tabletop exercises designed around holiday scenarios
- Governance support aligned with examiner expectations
Preparation before the holiday rush reduces the chance of starting the new year with an incident, investigation, or regulatory issue.
Conclusion
Holiday cybersecurity risks for banks are predictable, repeatable, and preventable. Attackers rely on distraction, urgency, and reduced oversight. Banks that plan for these conditions maintain trust and operational stability when it matters most.
The holidays should be a time for customers and staff to focus on what matters. Cyber incidents should not be part of the season.
If your institution wants to strengthen holiday readiness and year-round cyber resilience, talk with Saturn Partners about building a practical, examiner-ready security strategy.