Part IV:CEO Fraud Who’s At Risk

Welcome back ~ Last month we took a look at social engineering and techniques, lets now open up to who is at risk. Such attacks are anything but rare. In fact, they are so successful that billions are being plundered out of corporate accounts. Here are some CEO examples in the last couple years cyber attacks:

The City of EL PASO, Texas 2016: El Paso lost $3.1 million intended for a streetcar project to a person pretending to be a legitimate vendor. The city made two payments before discovering the scam. The city recovered half of the money.

SS&C Technologies Holdings 2016: A lawsuit by Tillage Commodities Fund alleges that financial services software firm SS&C fell for an email scam that led to Chinese hackers stealing $5.9 million. Staffers inadvertently aided the criminals by helping them fix the transfer orders so the money could be transferred. The scam emails added an extra “L” to Tillage as in Tilllage and contained unusual syntax and grammatical errors. The lawsuit seeks $10 million in damages, plus punitive damages and legal fees. A spoofed email, claiming to come from the CEO, requested that accounting transfer money to a foreign account for a fake acquisition. Although the company recovered some of the funds, the CEO lost his job.

Leoni AG 2016: This cable manufacturer lost $44 million to a CEO fraud attack using emails crafted to appear like legitimate payment requests from the head office in Germany, asking for the money to be sent from a subsidiary in Romania. The CFO of the Romanian operation was the victim of the scam. She was taken in by the realistic looking emails and by the fact that the scammers had extensive knowledge about the internal
procedures for approving and processing transfers at Leoni. This indicates that they had penetrated the network earlier, probably through phishing emails and had been snooping for months.

Mattel 2016: The toy manufacturer Mattel transferred $3 million to an account in China after receiving a spoofed email supposedly from the CEO. Fortunately, the finance executive who transferred the money bumped into her boss a short time later and mentioned the deal. As little time had elapsed, the bank in China still had the funds and returned them to Mattel.

Pomeroy Investment Corp 2016: Not so lucky was this firm in Troy, Michigan after it transferred almost $500,000 to a Hong Kong bank. This followed the email account of a company executive being hacked. The error was noticed eight days after it took place, and the money was long gone.

No matter the size of the company the involvement of the CEO and communication with their staff is critical in the leadership, lively hood and company success.

Next post find out ~ Risk or Reputation – Who Is a Target?.. Think Before You Click!

Tina Louise ~ www.cloudplusservices.com ~ 888.871.6584

 

 

 

 

 

 

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