Intelligent CIO Europe Issue 21 | Page 28

INFOGRAPHIC Proofpoint stresses need to combat email attacks RECOGNIZING AND AVOIDING BUSINESS EMAIL COMPROMISE ATTACKS Stop Wire Transfer Fraud in Its Tracks BEC Q&A What Is Business Email Compromise? Who Is Targeted in a BEC Attack? A business email compromise attack — also known as a BEC attack — is a type of phishing attack in which a cybercriminal impersonates a high-level executive or other trusted contact and uses social engineering techniques to trick an email recipient into transferring funds into a fraudulent account. How Does a BEC Attack Happen? BEC attacks are often highly sophisticated and carefully planned, making it difficult for a target to identify the scam. Cybercriminals generally follow a pattern like the following: Cybercriminals seek out situations in which fund transfers happen on a regular basis, and they have been known to attack organizations of all sizes across all sectors, as well as individuals. Anyone who is authorized to complete financial transactions as part of a normal course of business could be a target. Frequent victims include company controllers, accountants, and parties involved with real estate transactions (including agents, buyers, and sellers). DO THE RESEARCH LAY THE GROUNDWORK The attacker will identify an organization and/or the targeted individual(s). They will then gather information using social media channels, publicly available data, and phone calls, developing profiles they can draw on to create believable communications. Attackers attempt to build relationships with individuals who have access to financial accounts. They often use a combination of phone calls and “spoofed” or hacked email messages, which appear as though they are coming froma trusted source (like a CEO, CFO, external supplier, or law firm). Multiple communications can take place over days, weeks, or even longer in order to create a sense of trust and familiarity. STEAL THE FUNDS The money is routed to an account controlled by the attacker. By the time the attack is discovered, it is generally too late to track or recover the funds. SET THE TRAP Ultimately, the attacker asks the target to initiate a wire transfer for a seemingly legitimate business reason. Because the target believes the attacker is someone they trust, they often act on the request without reservation. Are BEC Attacks Strictly About Wire Transfer Fraud? BEC attacks are most commonly tied to fraudulent wire transfers, but similar techniques have been used to obtain sensitive information, like wage and tax statements and other confidential employee data. In these cases, the target is asked to send employees’ personally identifiable information (PII) to a seemingly legitimate requester, and that data is then used to commit tax fraud and other crimes. Source: Federal Bureau of Investigation Public Service Announcement, July 12, 2018 78,000 global incidents $ 12.5 billion in exposed losses reported by financial institutions worldwide BEC by the Numbers between October 2013 and May 2018: reported by financial institutions worldwide 43,000 victim complaints worldwide with $ 3.6 billion in exposed losses 136 % increase in identified exposed losses between December 2016 and May 2018 BEC scams reported in 150 countries and all 50 US states Fraudulent wire transfers sent to 115 countries Approximately 900 reported W-2 phishing attacks in 2017 Source: Internal Revenue Service News Release, January 17, 2018 28 BEC Prevention and Protection INTELLIGENTCIO BEC attacks cannot succeed if you don’t take the bait! Use these tips to identify and avoid these types of attacks, and protect your organization’s www.intelligentcio.com funds, your coworkers’ data, and your own reputation.