With 400 organizations falling victim to CEO frauds each day, there may be more cases going unreported. These cases have a significant impact on these companies’ bottom lines. These frauds caused the closure of several enterprises. It has resulted in an estimated $43 billion in losses globally, which have already reached alarming proportions. According to treasures.org, the Business Email Compromise (BEC) crime, often known as the CEO frauds, has hurt numerous corporate houses. It has caused the Austrian Aerospace Company to remove its CEO Walter Stephan in May after it lost 47 million dollars. And this swindle has spread like wildfire, becoming worse every day.
CEO fraud attacks, often referred to as “business email hacks,” are a kind of cybercrime that targets companies and organizations. An employee receives an email from the attacker, who poses as the CEO or another senior official, and requests money or personal information. They accomplish this by falsifying their address and evading verification procedures.
Busting BEC Scammers: Tips and Tricks to Keep Your Business From Falling for Fraud.
These attacks can be highly successful because the attacker uses social engineering tactics to make the email seem legitimate. They may use the CEO’s name, email address, and company branding to trick employees into thinking the request is genuine.
To prevent CEO frauds, it is important for businesses to implement a number of security measures. Here are some key steps to take:
- Implement multifactor authentication: By forcing workers to input a security code sent to their phone or another device in addition to their password, multifactor authentication offers an additional degree of protection to email accounts. As a result, it is significantly more challenging for attackers to access email accounts.
- Educate employees: Employees are often the first and strongest line of defence against CEO frauds. By educating them on the dangers of these attacks and how to spot a fraudulent email, businesses can reduce the risk of a successful attack.
- Implement the right cybersecurity tool: Email Authentication and DMARC are the first technologies that immediately come to mind when discussing cybersecurity solutions. The DMARC record and insights on people attempting to impersonate someone using your brand’s name are both provided by this tool, which does a fantastic job of combating domain spoofing. Before they get to a worker’s inbox, it may identify and filter fake emails. This may aid in preventing CEO fraud in the first instance.
- Implement strict security protocols for payment procedures: For bank transactions, businesses should have stringent procedures in place, such as needing numerous clearances. This may make it more difficult for an attacker to transfer money from the company’s account.
- Regularly review and update security measures: To make sure their security procedures are up-to-date and effective against the most recent threats, businesses should routinely examine and upgrade them. This entails frequently checking for unusual activities, as well as keeping the OS and antivirus software of the device updated.
Ultimately, CEO scams might be a fatal blow to any company. resulting in severe monetary losses and reputational harm. Implementing a thorough security policy is essential if you want to safeguard your company from these kinds of cyberattacks. Two-factor authentication, staff training, anti-phishing software, and routine security protocol reviews and updates must all be part of this plan.
In addition, implementing DMARC (Domain-based Message Authentication, Reporting, and Conformance) is a must for businesses. It safeguards their email communication and prevents phishing and fraud. Training employees on recognizing and reporting suspicious emails can also go a long way in preventing these attacks.
Don’t wait until it’s too late; take proactive measures now to secure your business and give yourself peace of mind.