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FBI: $2.3 Billion lost to CEO Email Scams

FBI: $2.3 Billion lost to CEO Email Scams

The U.S. Federal Bureau of Investigation (FBI) this week warned about a “dramatic” increase in so-called “CEO fraud,” e-mail scams in which the attacker spoofs a message from the boss and tricks someone at the organization into wiring funds to the fraudsters. The FBI estimates that these scams have cost organizations more than $2.3 billion in losses over the past three years.

FBI officials are warning potential victims of a dramatic rise in the business e-mail compromise scam or “B.E.C.,” a scheme that targets businesses and has resulted in massive financial losses in Phoenix and other cities.

The schemers go to great lengths to spoof company e-mail or use social engineering to assume the identity of the CEO, a company attorney, or trusted vendor. They research employees who manage money and use language specific to the company they are targeting, then they request a wire fraud transfer using dollar amounts that lend legitimacy.

There are various versions of the scams. Victims range from large corporations to tech companies to small businesses to non-profit organizations. Many times, the fraud targets businesses that work with foreign suppliers or regularly perform wire transfer payments.

Tips for Businesses:
◾Be wary of e-mail-only wire transfer requests and requests involving urgency
◾Pick up the phone and verify legitimate business partners.
◾Be cautious of mimicked e-mail addresses
◾Practice multi-level authentication.

Article and images reposted from krebsonsecurity.com

Posted in: Network Security, Tech Tips for Business Owners

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