Cyber-security threats have evolved exponentially with the rapid adoption of cloud computing, mobile technology, and remote access. You can help protect your business by staying abreast of the latest emerging threats. For example, a recent scam called "Masquerade" involves hackers infiltrating email networks, impersonating executives and sending fake directives that result in wire fraud.
This scam preys on today's corporate culture in which employees are available 24/7 and typically respond immediately when asked to solve a problem. "Masquerading" targets a weak security link in a typical firm — the CEO or C-level executive email account. The email takeover usually occurs after a network attack.
This is how they work:
The crook - acting as the fake CEO — emails a targeted employee in finance or corporate accounting. The company's employee receives an email from the CEO requesting that money be wired in order to pay for an urgent business-related expense. The emails often look authentic and may include names, wire details, amount and a reason for the request. For instance, the fake CEO might claim to be on a business trip and request immediate funds for a confidential business investment or to make a payment to a vendor. Money is then wired or transmitted through ACH to a bogus account controlled by the thief.
Because of the sender and the urgency associated with the message, security practices are often bypassed or overlooked. The hackers literally "masquerade" as the executive, convincing lower-level employees to schedule fraudulent wire or ACH transfers.
Many cyber-security threats can be countered by properly maintaining computing resources, enforcing effective internal standards for account and online access, and embracing the security measures offered by your financial institution. The foremost line of defense against fraud begins with you and your company.
Preventing fraud is very important — please share this with your manager or senior executive so they can become familiar with "Masquerade" and review our briefing paper.
