Brief: In this detailed guide, we will disambiguate the labyrinthine topic of email fraud. Specifically, we will shed light on two significant cyber threats—Business Email Compromise (BEC) and Account Takeover (ATO)—providing concrete steps that business leaders can take to bolster their company’s fortifications. The objective is to arm you with the knowledge and tools necessary to safeguard your business against these treacherous forms of email fraud.
In a world where the digital landscape is as lucrative for business as it is perilous, understanding the intricacies of safeguarding your enterprise is not just prudent—it’s paramount. Cyber security is no longer a facet of operational strategy relegated to the IT department alone; it’s a fundamental concern that permeates every aspect of the business, from the cubicles to the boardroom.
Email fraud is one of the most insidious and, unfortunately, a growing menace in the realm of cyber threats. For business leaders, the concept of email fraud might seem shrouded in complexity and mystique, a domain best left to experts in hoodies pounding out code in front of green-blinking terminals. However, the reality is not quite so esoteric.
Understanding BEC and ATO: A Snapshot
Before we plunge into preventive measures, it’s crucial to understand the nature of the threats we are dealing with. BEC and ATO are deceptively simple yet devastatingly effective forms of email fraud.
What Are BEC and ATO, and How Do They Work?
BEC and ATO are common attack vectors in today’s cybercrime economies, highly sought after by specialists called Initial Access Brokers (IABs).
Specialized hackers excel in finding entry points to an organization or finding credentials that have access to cloud resources (like email) or publicly available services (like VPNs). These hackers do not use malware or exploits, like you would suspect, but instead commonly focus on the following tactics:
- Phishing
- SEO poisoning
- Watering hole attacks
- Credential stuffing
- Social engineering
- Open Source Intelligence (OSINT)
Once the IAB retrieves access to your credentials or session tokens, used to bypass weak Multi-Factor Authentication (MFA), they will sell the accounts on dark web marketplaces to other hackers that specialize in other areas of the attack chain.
The Stakes of Inaction
The impact of these scams is not confined to the digital realm; they reverberate in the real world with alarming consequences. Businesses can suffer blackmail, extortion, Intellectual Property (IP) theft, and substantial financial losses, not to mention the erosion of customer trust and the company’s hard-earned reputation. The personal toll on employees unjustly targeted by these scams can be just as harrowing, further compounding the need for robust protection.
The Scale of the Threat
To grasp the magnitude of the risks, one needs only to glance at the statistics. Organizations of all sizes—especially small to medium-sized businesses—are prime targets for BEC and ATO attackers due to often less stringent security protocols and defences.
The Alarming Statistics
The numbers are sobering. According to the FBI, BEC accounted for over $1.8 billion in losses in 2020. What’s even more concerning is the likelihood of underreporting, meaning the actual figures could be significantly higher. Scammers have refined their methods, collaborating across borders and employing sophisticated tactics, leading to a significant rise in successful attacks.
A Rising Tide of Cybercrime
The rise of Phishing as a Service (PaaS) is exacerbating the problem. This malicious marketing model is fast-tracking the proliferation of email fraud by making phishing kits and services—once the reserve of skilled hackers—available to a wider audience, including cyber novices.
How BEC and ATO Scams Work
Without immersing yourself in the intricacies of session token handling or dark web marketplaces, it’s crucial that you understand the basic mechanics of these frauds.
Simplifying the Process
BEC and ATO incidents typically follow a pattern that involves steps like credential capture, impersonation of legitimate users, and the execution of fraudulent activities. These are carried out methodically, with an eye for detail, to maximize the likelihood of deception and success.
Everyday Analogies to Complex Scams
Imagine cyber security as the lock on your front door, and BEC and ATO are the sly pickpockets devising novel methods to circumvent it. A “fake key” can be akin to a phishing email that tricks the recipient into handing over login credentials or a “stolen identity” that allows the attacker to operate seemingly unnoticed within your digital homestead.
Recognizing Common Scams
BEC and ATO come in various guises, each more deceptive than the last. It’s imperative that leaders are able to recognize the signs and act swiftly to prevent fraudulent activities.
CEO Fraud
The perpetrator, masquerading as a high-level executive, requests a fraudulent wire transfer or sensitive information from the finance department. The urgency and apparent legitimacy of the request often result in swift compliance, leading to significant financial losses for the company.
Invoice and Payment Diversion Scams
An attacker, having gained access to the organization’s email system, monitors and intercepts legitimate invoices and directs payment to fraudulent accounts, often routing money to untraceable offshore destinations.
Who’s Behind These Scams?
In the world of email fraud, there are typically two categories of culprits: external threat actors and, less frequently, insider threats. Both demand a different approach to prevention.
The External Menace
These are the shadowy figures operating at arm’s length, often beyond the jurisdiction of your legal team or law enforcement. Their motivations range from financial gain to pure malicious intent, and they are relentless in their pursuit of vulnerable prey.
Threats from Within
While rare, the danger of an insider threat should not be underestimated. The motives for such actions are typically more complex, often involving a combination of personal grievances and opportunity.
Protecting Your Business: Practical Measures
In the face of such threats, the question becomes not if but how one should act. Here, we outline practical steps that can fortify your business against the depredations of email fraud.
- Elevating Employee Awareness: Ensuring that every member of your team is conscious of the email fraud threat is a critical first step. Regular training sessions and awareness programs can prove to be the most effective deterrent.
- Harnessing Email Security Tool: The arsenal against email fraud includes robust email security solutions that can detect and intercept fraudulent messages before they infiltrate your network.
- The Role of Verification Processes: Before carrying out any unusual or directive email request, it is essential to have a verification process in place. This could involve a multi-person approval or, more simply, picking up the phone and verifying the authenticity of the request with the supposed sender.
A simple example of how this is applied is to verify the legitimacy of surprising invoices by contacting vendors by phone at a known valid number to confirm the legitimacy of a surprising invoice or EFT.
Continuous Monitoring and Automated Responses
Configuring email filters can be a balancing act. Either you let in too much, or too little, and now the business is missing email. This is why the pairing of automated tools and continuous monitoring is important.
Automated systems stop the vast majority of attacks running silently in the background, or detecting suspicious logins, and ensuring a risk score is attributed to the login attempt. However, to ensure that known valid activity is not being stopped, human eyes are required to analyze potential threats that may leave some ambiguity.
Security Assessments and Dark Web Scanning
Periodic security reviews and scans of the dark web for compromised company information can provide a critical early warning system, alerting you to vulnerabilities before the attackers exploit them.
The Legal Landscape and Your Responsibilities
Understanding the legal ramifications of email fraud is an often-overlooked aspect of cyber security. Business leaders need to be aware of the potential liabilities and their role in protecting sensitive data.
Navigating the Legal Maze
The repercussions of an email fraud incident can extend well beyond the digital damage. There can be a litany of legal implications, from breaches of financial regulations to violations of privacy laws, each with its set of punitive measures.
Your Role in Account Security
Leaders must assume the mantle of responsibility for maintaining the security of corporate accounts. This includes overseeing the implementation of policies and practices that minimize the risk of email fraud.
Making Cyber Security a Priority
In the final analysis, safeguarding your business against the perils of email fraud is as much about mindset as it is about methodologies. It requires a commitment to continuous learning, a readiness to adapt to new threats, and an ethos of collective vigilance within the organization.
Security Response Procedures
Make sure your IT team has a written guide ready that outlines what to do if someone tries to hack into your company’s emails or accounts. This guide is like having a map that shows the quickest way out of a maze—it tells your team step by step how to quickly stop hackers in their tracks and secure your systems again. This way, everyone knows exactly what to do without wasting any time, keeping your business safe and running smoothly.
Deploy MFA
While MFA technologies can be bypassed in some attacks, ensuring that MFA is configured on all entry points to your cloud and on-premises environments is paramount to protecting your company against credential-stuffing attacks.
A Culture of Security
Foster an environment where security is not a passive checkmark on a to-do list but a living, breathing aspect of everyday business. Encourage employees to question the authenticity of emails and to be mindful of the responsibilities that come with corporate email accounts.
Continuous Learning and Adaptation
The cyber-threat landscape is a fluid one, with new scams and tactics emerging daily. Stay abreast of the latest developments and adapt your defences in response. This might involve technology upgrades, revised policies, or enhanced training.
With the insights provided in this comprehensive guide, business leaders are well-equipped to take the reins in the fight against email fraud. Your next steps are clear: enhance employee awareness, fortify your email security infrastructure, and instill in your organization a steadfast commitment to the highest standards of digital diligence.
Remember, the digital age rewards those who are prepared and punishes those who are not. By taking proactive measures today, you can protect your business, your employees, and your future from the insidious threat of email fraud.
Connect with a managed IT security specialist today to learn how F12.net can help with your evolving IT cyber security needs.
FAQs:
Q: What is Phishing?
A: Phishing is a cybercrime in which individuals are contacted by email, telephone, or text message by someone posing as a legitimate institution to lure individuals into providing sensitive data such as personally identifiable information, banking and credit card details, and passwords. The information is then used to access important accounts and can result in identity theft and financial loss. The attackers use deceptive emails or messages that mimic legitimate organizations, often with a sense of urgency, to trick users into taking action that will compromise their data. Phishing attacks rely heavily on social engineering techniques to exploit human vulnerabilities, making awareness and caution crucial in avoiding such scams.
Q: What is SEO Poisoning?
A: SEO poisoning, also known as Search Engine Poisoning, is a malicious technique used by cybercriminals to manipulate search engine rankings to display their malicious websites high in the search results. This method exploits the algorithms of search engines to favour the attacker’s website, often by using popular keywords and trending topics to lure unsuspecting users into visiting compromised sites.
The primary goal of SEO poisoning is to distribute malware, conduct phishing attacks, or deceive users into parting with personal and financial information. When users click on these poisoned search results, they may be directed to websites that host malware, which can automatically download onto their device without their knowledge, or to phishing sites that mimic legitimate websites to steal login credentials, credit card numbers, and other sensitive information.
Q: What are Water Hole Attacks?
A: Watering hole attacks are a type of cyber threat where attackers target a specific group of users by infecting websites that they are known to frequently visit. The goal is to compromise those websites with malicious code in the hope that some members of the targeted group will visit the site, get infected, and enable the attacker to gain access to the network of the targeted organization or to sensitive information.
Q: What is Credential Stuffing?
A: Credential stuffing is a type of cyber attack in which attackers use automated tools to perform large-scale, automated login attempts against a targeted website or service, using lists of usernames and passwords obtained from previous data breaches. The fundamental assumption behind this attack is that many people reuse their passwords across multiple services. By trying these stolen credentials on various websites, attackers can potentially gain unauthorized access to accounts across different platforms.
Q: What is Social Engineering?
A: Social engineering is a tactic used by cybercriminals to manipulate individuals into giving up confidential information, such as passwords, bank information, or access to their computer. This method relies more on human psychology and trickery than on traditional hacking techniques. The goal is often to trick someone into breaking standard security practices, such as by revealing passwords or downloading malware, through various forms of deceit.
Q: What is Open Source Intelligence (OSINT)?
A: Cybercriminals use OSINT techniques to gather information on potential targets. This can include finding vulnerabilities in an organization’s public-facing websites, identifying employees’ email addresses for phishing attacks, or collecting data that can be used in social engineering attacks. Information such as personal details, work history, and social connections available on social media platforms can be exploited to craft highly targeted and convincing spear-phishing campaigns.