CEO Fraud Scams And Why They Are Successful
Everyone want to keep the boss happy. Staying in their good-graces means promotions, job security and, usually, a stress-free work environment. When an email comes through from the boss marked “Urgent” our hearts race and we play through different scenarios before we even read it. Turns out they’re extremely busy and need our help getting something done. Perfect, a chance to prove how valuable we are! In today’s world of sophisticated cyber fraud this scenario is ending poorly for more and more businesses.
Why CEO Fraud Scams Are So Successful
CEO Fraud Scams, also known as CFO Fraud Scams or Business Email Compromise Scams (or BEC), are a type of cyber phishing scam performed by sophisticated cyber criminals that are skilled in social engineering tactics. Just two months ago, November of 2018, it was reported that the European cinema chain Pathé had fallen victim to a BEC scam that cost them over 19 million euros! That’s roughly $21.5 million U.S.! In the case of Pathé, cyber criminals impersonated company headquarter officials and convinced the CEO and CFO of their Dutch branch to transfer the funds over a series of money transfers. You may be asking yourself, how could business or upper management fall for such a scam? Well, the cyber criminals had done their research and had even created emails that almost exactly resembled the official Pathé domain. And, they did they used social engineering and convinced the Dutch branch CEO and CFO that the funds were for a confidential acquisition and that they couldn’t discuss the transfer with anybody in the company.
This is an extreme example of a CEO Fraud or BEC scam, but it shows the extent to which fraudsters and cyber criminals will go and the tactics they use to get at your business. Cyber criminals research, plan, impersonate upper-level management.
Don’t Become A Victim of CEO Fraud Scams
With over $12 billion dollars (FBI global estimate), odds are you and your business will be the target of a BEC scam. Protecting your business is a must! Developing IT security strategies for business is our specialty. Contact Us discuss implementing a plan to protect your business from advanced cyber security threats.