Understanding the Threat
Wire fraud is a type of fraud that involves the use of electronic communications, such as email or phone calls, to deceive individuals or organizations into sending money or sensitive information to fraudulent accounts.
Picture this: Your long-standing client receives an email from your company’s authentic email account, requesting payment for the month. Unbeknownst to both parties, cybercriminals had gained unauthorized access to the CEO’s email account months prior, meticulously observing communication patterns. Seizing the opportune moment, the cybercriminal crafts a convincing email mirroring your usual billing process. The client, trusting the familiar sender and content, complies with the payment instructions and wires the funds to an offshore account specified in the fraudulent email. By the time the fraud is uncovered, the transferred funds are irretrievable, leaving both your business and the client facing significant financial losses. But who is at fault?
While most individuals should be proactive in their own cyber security awareness, the business may have failed to comply with proper cyber security standards and NIST best standards. Negligence in maintaining proper security protocols could contribute to the success of the fraudulent scheme, meaning the business could be at fault.
Why Target Emails?
Your emails contain a plethora of personal details. Business transactions, login credentials, access to cloud environments and more. Making it an exceedingly attractive target for cybercriminals. Over the years their tactics have evolved and advanced, they get increasingly better at achieving their goals. However, it’s no longer about just protecting your business, its about protecting your customers.
Types of Wire Fraud
Business Email Compromise (BEC)
Business Email Compromise (BEC) involves cybercriminals gaining unauthorized access to an email account, allowing them to use and impersonate company executives or employees to deceive others into transferring funds or sensitive information, utilizing the compromised email for fraudulent activities.
Email Spoofing
This scam involves creating an email that closely resembles a legitimate sender’s email address or domain, aiming to deceive recipients into believing it’s authentic and persuading them to take actions like sharing sensitive information or making payments.
Ransomware Attacks
Emails containing malicious attachments or links that, when clicked, deploy ransomware onto the recipient’s system, encrypting files and demanding payment for decryption.
There are 2,412 reports of wire fraud daily.
Prevent Your Business from Being A Part of The Statistic
You must take action. Considering the stakes involved, it’s imperative for businesses to take proactive measures to enhance their email security posture. It is vital to stay ahead of potential threats and mitigate risks before they escalate into significant security incidents. At CATS Technology we work tirelessly to recommend and implement a framework that puts your business one step ahead of cyber threats.
- Email Authentication Protocols
- Employee Training and Awareness
- Regular System Health Checks
- Continuous Security Monitoring
This only works through collaboration; we can fortify your business defenses together. Cyber criminals target the victims who are the least prepared, take action. If you believe your email lacking these proactive measures, get in contact today to discuss a plan that positions your business for success.
The impact of wire fraud extends beyond financial loss. It’s also about protecting your customers and maintaining their trust. When cybercriminals target your business through email fraud, they not only jeopardize your company’s financial stability but also put your customers at risk. In today’s digital age, consumers expect to trust the businesses they work with. A single data breach resulting from email hacking can irreversibly damage your reputation and drive customers away.
Note; Proper cybersecurity practices for email are mandated by the Federal Trade Committee, as well as necessary to comply with cyber security insurance policies.
Never wire any money without confirmation. Always call and confirm the transaction.
Ensure that any business you work with has implemented adequate cybersecurity measures. Otherwise, their security vulnerabilities could negatively affect your business as well.
Confirm email authenticity by manually verifying an emails IP address and ensure it is coming from the write location.
