CEO fraud is a cybercrime where attackers pose as a company executive or trusted vendor and request payments or information from employees. The goal of these bad actors is to manipulate their victims into making unauthorized wire transfers or divulging sensitive info.
CEO fraud often involves credential compromise, malware-infected attachments, and sophisticated social engineering tactics. Given the rising prevalence and potential damage, businesses must be vigilant in training staff on cybersecurity best practices and implementing multi-factor authentication measure.
BEC scams are a costly problem for businesses worldwide. Between 2016 and 2019, global losses due to these types of attacks exceeded $26 billion.
Types of CEO Fraud
CEO fraud – also known as business email compromise or whaling – can include fake invoice scams, data theft scams, and attorney impersonation scams.
Cybercriminals employ different tactics to defraud companies and cause damage through credential compromise or data breaches.
Fake Invoice Scams: Scammers send fake invoices posing as trusted vendors or high-profile employees and request payment to a fraudulent account.
Data Theft Scams: Scammers pose as an executive and request confidential information from an employee such as login credentials or financial data.
Attorney Impersonation Scams: Scammers pretend to be lawyers representing the company in a legal matter and demand payment for settlement fees.
These schemes rely on social engineering techniques that trick victims into believing they are communicating with someone legitimate or in higher power.
The Growing Threat of BEC Scams
One reason CEO fraud is so dangerous is their sophistication. Attackers take the time to research targets and create convincing emails that appear legitimate at first glance. This makes it difficult for even savvy employees to identify a scam before it’s too late.
In addition, the increasing use of cloud-based email services that can be easily compromised has contributed to the rise in CEO fraud. These services have simplified access for attackers who can compromise employee accounts without being noticed. This highlights the importance of implementing additional security measures such as multi-factor authentication and monitoring systems that detect suspicious activity.
Learn more about CEO spamming
Lastly, lack of employee awareness about these types of attacks makes them more vulnerable targets for CEO fraud scammers. Businesses need to prioritize cybersecurity training programs that educate employees on how to recognize and respond appropriately to phishing attempts and other types of social engineering attacks. By raising awareness among staff members about the risks involved in these types of scams, businesses can significantly reduce their risk exposure from this growing threat.
All things considered, IT security and risk management professionals must remain vigilant against this growing threat by implementing comprehensive cybersecurity measures like two-factor authentication and employee training programs on how to recognize potential CEO fraud.
Statistics and Examples
Business email compromise (BEC) scams are a costly problem for businesses worldwide. Between 2016 and 2019, global losses due to these types of attacks exceeded $26 billion. In the US alone, there were over 23,000 reported BEC incidents in 2020. These statistics highlight the need for increased awareness and vigilance when it comes to protecting sensitive information from cybercriminals.
Examples of high-profile fraud serve as cautionary tales for organizations that may be vulnerable to attack. The Ubiquiti Networks incident is one such example where attackers stole $46 million by impersonating executives and requesting wire transfers from employees.
It’s clear that no company is immune to this threat, making it crucial for businesses of all sizes to take proactive measures against CEO fraud before trouble strikes.
How to Protect Your Business from CEO Fraud
To protect your business from CEO fraud, it is crucial to invest in employee education and training. Educate employees on how to identify suspicious emails and verify requests for sensitive information. Provide regular security awareness training to keep them updated about the latest threats and best practices.
Employee Education and Training
To prevent CEO fraud from infiltrating businesses, employee education and training are key, and one of the most important lessons is identifying suspicious emails. Employees should be trained to recognize red flags like unfamiliar senders, odd subject lines or requests for sensitive information.
Another crucial step is verifying payment requests with known contacts – especially those that involve large sums of money – by phone or in person before proceeding with any transactions.
Finally, all employees should be encouraged to report any suspected BEC scams to their IT department immediately so that appropriate measures can be taken to protect the company’s assets and reputation.
Technology Solutions
Technology solutions are crucial in preventing CEO fraud from happening. Implementing anti-phishing software is one effective way to protect email accounts against phishing attempts that can lead to BEC attacks. Two-factor authentication for email accounts adds an extra layer of security, making it harder for cybercriminals to gain unauthorized access.
Monitoring network traffic for unusual activity is another essential measure that IT security professionals should take into consideration. By keeping a close eye on suspicious activities within the company’s network, malicious actions can be detected and prevented before they cause any damage.
- Implement anti-phishing software
- Use two-factor authentication for email accounts
- Monitor network traffic for unusual activity
How Bolster Can Help
Bolster’s domain monitoring solutions and other defensive strategies will ensure your company has true domain security. Bolster balances domain acquisition with monitoring to reduce the likelihood of cyberattacks and manage security costs.
Additionally, Bolster will remain proactive and monitor the security threat landscape to keep your domain safeguarded. With Bolster’s help, your brand’s reputation will remain protected.
Request a demo of our domain monitoring software today, or start with a complimentary and customized Domain Risk Report to see what domain risks we detect for your organization.
Also, check out our community tool CheckPhish
