As cyber criminals become increasingly sophisticated, the proliferation of scams targeting businesses has reached alarming levels. These scams can cause significant financial and reputational damage to companies if not identified and dealt with promptly. Here are some of the latest top scams and practical advice on how to counter them.
1. Fake Invoices
The Scam: Scammers often study your company to find out who your vendors are. They then order something from that vendor to get a copy of what their invoice looks like. Using this information, they spoof an email and send it to your business in hopes that you will pay it.
Why it works: Large enterprises are bureaucratic by nature, which can lead to a tendency to pay invoices without thorough verification to avoid delays. With so many tasks to manage, it’s easy to overlook whether an invoice is legitimate.
How to counter: Always check what services or products the payment is for. In-person verification is often the best countermeasure. Make it a standard practice to verify invoices with the vendor through a trusted communication channel before processing any payments.
2. Cloning Bosses’ Voice and Face
The Scam: AI technology is becoming impressive at cloning voices and faces. Scammers use this technology to create a convincing replica of a superior’s voice and face, then get on a voice or video call with an employee and request money to be wired to an account.
Why it works: The scam appears legitimate because it features a face and voice that employees know well, making it difficult to question. The technology is so advanced that it’s almost inconceivable that the request could be fake.
How to counter: Always go directly in person to the superior if possible. Call them on their phone or video chat again to verify. Check with multiple people, and never pay right away. Delaying and verifying through multiple channels can prevent falling for this scam.
3. Business Email Compromise (BEC)
The Scam: Cyber criminals hack into a business email account and impersonate the owner, usually a high-level executive or someone with financial authority. They send fraudulent emails to employees or business partners requesting wire transfers, sensitive information, or even gift cards.
Why it works: These emails appear to come from a trusted source within the organization, often using the same language and style as the legitimate owner. The urgency and authority in the emails can pressure employees into acting quickly without verification. Gift cards are frequently requested for purposes like a party or as thank-you gifts for employees, making the requests seem plausible.
How to counter: Implement strict protocols for wire transfers and information sharing. Use multi-factor authentication (MFA) for email accounts, and train employees to recognize and report suspicious emails. Establish a clear policy regarding gift card requests, including direct verification with the requesting party.
4. Ponzi Schemes
The Scam: In a Ponzi scheme, scammers lure businesses or investors with the promise of high returns on investments. Early investors are paid with the funds collected from newer investors, creating the illusion of a profitable venture. The scheme collapses when the flow of new investments slows down, leaving later investors with significant losses.
Why it works: Ponzi schemes exploit the natural desire for high returns on investments. The apparent success and early payouts convince more people to invest, perpetuating the cycle. The schemes often appear legitimate, backed by impressive presentations and false documentation.
How to counter: Conduct thorough due diligence before making any investments. Verify the credentials and track records of investment managers. Be wary of investments that promise unusually high returns with little or no risk. Regularly review and audit investment portfolios to detect any irregularities.
5. Tech Support Scams
The Scam: Scammers pose as IT support staff, either from within the company or an external vendor, claiming there is an urgent issue that requires immediate access to company systems or payment for a fake service.
Why it works: The sense of urgency and authority can panic employees into complying without proper verification. The scammers often use technical jargon to appear legitimate.
How to counter: Educate employees about tech support scams and establish clear protocols for IT support. Ensure that all IT requests are verified through official channels before any action is taken. Regularly update and communicate these protocols to all employees.
By being aware of these scams and implementing robust verification processes, businesses can protect themselves from falling victim to cyber criminals. Training employees to recognize the signs of scams and encouraging a culture of vigilance and verification can go a long way in safeguarding company assets and information.
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