Search This Blog
Powered by Blogger.

Blog Archive

Labels

Load More
Trendy Right Now

Popular Posts

Showing posts with label Financial Loss. Show all posts
synthetic ID fraud
AI tools Cyber Security Financial Loss Identity Fraud KYC SSN synthetic ID fraud

How Synthetic Identity Fraud is Draining Businesses


 

Synthetic identity fraud is quickly becoming one of the most complex forms of identity theft, posing a serious challenge to businesses, particularly those in the banking and finance sectors. Unlike traditional identity theft, where an entire identity is stolen, synthetic identity fraud involves combining real and fake information to create a new identity. Fraudsters often use real details such as Social Security Numbers (SSNs), especially those belonging to children or the elderly, which are less likely to be monitored. This blend of authentic and fabricated data makes it difficult for organisations to detect the fraud early, leading to financial losses.

What Is Synthetic Identity Fraud?

At its core, synthetic identity fraud is the creation of a fake identity using both real and made-up information. Criminals often use a legitimate SSN paired with a fake name, address, and date of birth to construct an identity that doesn’t belong to any actual person. Once this new identity is formed, fraudsters use it to apply for credit or loans, gradually building a credible financial profile. Over time, they increase their credit limit or take out large loans before disappearing, leaving businesses to shoulder the debt. This type of fraud is difficult to detect because there is no direct victim monitoring or reporting the crime.

How Does Synthetic Identity Fraud Work?

The process of synthetic identity fraud typically begins with criminals obtaining real SSNs, often through data breaches or the dark web. Fraudsters then combine this information with fake personal details to create a new identity. Although their first attempts at opening credit accounts may be rejected, these applications help establish a credit file for the fake identity. Over time, the fraudster builds credit by making small purchases and timely payments to gain trust. Eventually, they max out their credit lines and disappear, causing major financial damage to lenders and businesses.

Comparing Traditional VS Synthetic Identity Theft

The primary distinction between traditional and synthetic identity theft lies in how the identity is used. Traditional identity theft involves using someone’s complete identity to make unauthorised purchases or take out loans. Victims usually notice this quickly and report it, helping prevent further fraud. In contrast, synthetic identity theft is harder to detect because the identity is partly or entirely fabricated, and no real person is actively monitoring it. This gives fraudsters more time to cause substantial financial damage before the fraud is identified.

The Financial Impact of Synthetic Identity Theft

Synthetic identity fraud is costly. According to the Federal Reserve, businesses lose an average of $15,000 per case, and losses from this type of fraud are projected to reach $23 billion by 2030. Beyond direct financial losses, businesses also face operational costs related to investigating fraud, potential reputational damage, and legal or regulatory consequences if they fail to prevent such incidents. These widespread effects calls for stronger security measures.

How Can Synthetic Identity Fraud Be Detected?

While synthetic identity fraud is complex, there are several ways businesses can identify potential fraud. Monitoring for unusual account behaviours, such as perfect payment histories followed by large transactions or sudden credit line increases, is essential. Document verification processes, along with cross-checking identity details such as SSNs, can also help catch inconsistencies. Implementing biometric verification and using advanced analytics and AI-driven tools can further improve fraud detection. Collaborating with credit bureaus and educating employees and customers about potential fraud risks are other important steps companies can take to safeguard their operations.

Preventing Synthetic Identity Theft

Preventing synthetic identity theft requires a multi-layered approach. First, businesses should implement strong data security practices like encrypting sensitive information (e.g., Social Security Numbers) and using tokenization or anonymization to protect customer data. 

Identity verification processes must be enhanced with multi-factor authentication (MFA) and Know Your Customer (KYC) protocols, including biometrics such as facial recognition. This ensures only legitimate customers gain access.

Monitoring customer behaviour through machine learning and behavioural analytics is key. Real-time alerts for suspicious activity, such as sudden credit line increases, can help detect fraud early.

Businesses should also adopt data minimisation— collecting only necessary data—and enforce data retention policies to securely delete outdated information. Additionally, regular employee training on data security, phishing, and fraud prevention is crucial for minimising human error.

Conducting security audits and assessments helps detect vulnerabilities, ensuring compliance with data protection laws like GDPR or CCPA. Furthermore, guarding against insider threats through background checks and separation of duties adds an extra layer of protection.

When working with third-party vendors businesses should vet them carefully to ensure they meet stringent security standards, and include strict security measures in contracts.

Lastly, a strong incident response plan should be in place to quickly address breaches, investigate fraud, and comply with legal reporting requirements.


Synthetic identity fraud poses a serious challenge to businesses and industries, particularly those reliant on accurate identity verification. As criminals become more sophisticated, companies must adopt advanced security measures, including AI-driven fraud detection tools and stronger identity verification protocols, to stay ahead of the evolving threat. By doing so, they can mitigate financial losses and protect both their business and customers from this increasingly prevalent form of fraud.


Read more »
Ransomware
BlackSuit Customer Data Data Breach Data Leak Financial Loss Ransomware

Private Data of 950K Users Stolen in BlackSuit Ransomware Attack

 

On April 10, 2024, a BlackSuit ransomware assault disclosed 954,177 personally identifiable information, forcing Young Consulting to send out data breach notifications. 

Young Consulting (formerly Connexure) is an Atlanta-based software solutions provider that specialises in the employer stop-loss marketplace. It helps insurance carriers, brokers, and third-party administrators manage, market, underwrite, and administer stop-loss insurance policies.

Earlier this week, the company began notifying nearly a million individuals about a data breach. Among them are Blue Shield of California subscribers whose data was stolen during a ransomware campaign carried out by BlackSuit earlier this year.

The network intrusion occurred on April 10, but the company only noticed it three days later when the perpetrators triggered the encryption of its systems. The subsequent investigation was completed on June 28, finding that the following information had been hacked: full names, Social Security numbers (SSNs), dates of birth, and insurance claim details. 

Those affected will receive free access to Cyberscout's 12-month complimentary credit monitoring service, which they can claim until the end of November 2024. 

According to security experts, potentially affected individuals should take full advantage of this offer immediately, as BlackSuit has already disclosed the stolen information on its darknet-based extortion portal. 

Users should also keep an eye out for unknown communications, phishing messages, fraud efforts, and requests for more information. The attackers claimed responsibility for the attack on Young Consulting on May 7. They followed through on their threats to publish the stolen data a few weeks later, most likely after failing to extort the software company. 

BlackSuit claimed to have leaked far more than what Young Consulting disclosed in notices to affected individuals, including business contracts, contacts, presentations, employee passports, contracts, contacts, family details, medical examinations, financial audits, reports, and payments, as well as various content from personal folders and network shares. 

BlackSuit's operations this year have resulted in enormous financial losses for American businesses, the most notable being the CDK Global outage. Earlier this month, CISA and the FBI claimed that BlackSuit is an updated version of Royal ransomware that has demanded over $500 million in ransom over the last two years.
Read more »
Technology
Artificial Intelligence Businesses Deep Fakes Financial Loss Scotland Technology

Why AI-Driven Cybercrime Could Be Your Business's Biggest Risk


 


The way technology keeps shifting its paradigm, the line between genuine interactions and digital deception is becoming increasingly difficult to distinguish. Today’s cybercriminals are leveraging the power of generative artificial intelligence (AI) to create more closely intricate and harder-to-detect threats. This new wave of AI-powered cybercrime represents a humongous challenge for organisations across the globe.

Generative AI, a technology known for producing lifelike text, images, and even voice imitations, is now being used to execute more convincing and elaborate cyberattacks. What used to be simple email scams and basic malware have developed into highly realistic phishing attempts and ransomware campaigns. Deepfake technology, which can fabricate videos and audio clips that appear genuine, is particularly alarming, as it allows attackers to impersonate real individuals with unprecedented accuracy. This capability, coupled with the availability of harmful AI tools on the dark web, has armed cybercriminals with the means to carry out highly effective and destructive attacks.

While AI offers numerous benefits for businesses, including efficiency and productivity, it also expands the scope of potential cyber threats. In regions like Scotland, where companies are increasingly adopting AI-driven tools, the risk of cyberattacks has grown considerably. A report from the World Economic Forum, in collaboration with Accenture, highlights that over half of business leaders believe cybercriminals will outpace defenders within the next two years. The rise in ransomware incidents—up 76% since late 2022— underlines the severity of the threat. One notable incident involved a finance executive in Hong Kong who lost $25 million after being deceived by a deep fake video call that appeared to be from his CFO.

Despite the dangers posed by generative AI, it also provides opportunities to bolster cybersecurity defences. By integrating AI into their security protocols, organisations can improve their ability to detect and respond to threats more swiftly. AI-driven algorithms can be utilised to automatically analyse code, offering insights that help predict and mitigate future cyberattacks. Moreover, incorporating deepfake detection technologies into communication platforms and monitoring systems can help organisations safeguard against these advanced forms of deception.

As companies continue to embrace AI technologies, they must prioritise security alongside innovation. Conducting thorough risk assessments before implementing new technologies is crucial to ensure they do not inadvertently increase vulnerabilities. Additionally, organisations should focus on consolidating their technological resources, opting for trusted tools that offer robust protection. Establishing clear policies and procedures to integrate AI security measures into governance frameworks is essential, especially when considering regulations like the EU AI Act. Regular training for employees on cybersecurity practices is also vital to address potential weaknesses and ensure that security protocols are consistently followed.

The rapid evolution of generative AI is reshaping the course of cybersecurity, requiring defenders to continuously adapt to stay ahead of increasingly sophisticated cybercriminals. For businesses, particularly those in Scotland and beyond, the role of cybersecurity professionals is becoming increasingly critical. These experts must develop new skills and strategies to defend against AI-driven threats. As we move forward in this digital age, the importance of cybersecurity education across all sectors cannot be overstated— it is essential to safeguarding our economic future and maintaining stability in a world where AI is taking the steering wheel.


Read more »
Singapore
Cyber Crime Cyber Fraud Financial Loss Impersonation Attack Meta Scams Singapore

Scammers Exploit Messaging Apps and Social Media in Singapore


 


Singapore is experiencing the dread of scams and cybercrimes in abundance as we speak, with fraudsters relying more on messaging and social media platforms to target unsuspecting victims. As per the recent figures from the Singapore Police Force (SPF), platforms like Facebook, Instagram, WhatsApp, and Telegram have become common avenues for scammers, with 45% of cases involving these platforms. 

There was a marked increase in the prevalence of scams and cybercrime during the first half of 2024, accounting for 28,751 cases from January to June, compared to 24,367 in 2023. Scams, in particular, made up 92.5% of these incidents, reflecting a 16.3% year-on-year uptick. Financial losses linked to these scams totaled SG$385.6 million (USD 294.65 million), marking a substantial increase of 24.6% from the previous year. On average, each victim lost SG$14,503, a 7.1% increase from last year.

Scammers largely employed social engineering techniques, manipulating victims into transferring money themselves, which accounted for 86% of reported cases. Messaging apps were a key tool for these fraudsters, with 8,336 cases involving these platforms, up from 6,555 cases the previous year. WhatsApp emerged as the most frequently used platform, featuring in more than half of these incidents. Telegram as well was a go-to resort, with a 137.5% increase in cases, making it the platform involved in 45% of messaging-related scams.

Social media platforms were also widely used, with 7,737 scam cases reported. Facebook was the most commonly exploited platform, accounting for 64.4% of these cases, followed by Instagram at 18.6%. E-commerce scams were particularly prevalent on Facebook, with 50.9% of victims targeted through this platform.

Although individuals under 50 years old represented 74.2% of scam victims, those aged 65 and older faced the highest average financial losses. Scams involving impersonation of government officials were the most costly, with an average loss of SG$116,534 per case. Investment scams followed, with average losses of SG$40,080. These scams typically involved prolonged social engineering tactics, where fraudsters gradually gained the trust of their victims to carry out the fraud.

On a positive note, the number of malware-related scam cases saw a notable drop of 86.2% in the first half of 2024, with the total amount lost decreasing by 96.8% from SG$9.1 million in 2023 to SG$295,000 this year.

Despite the reduction in certain scam types, phishing scams and impersonation scams involving government officials continue to pose serious threats. Phishing scams alone accounted for SG$13.3 million in losses, making up 3.4% of total scam-related financial losses. The SPF reported 3,447 phishing cases, which involved fraudulent emails, text messages, and phone calls from scammers posing as officials from government agencies, financial institutions, and other businesses. Additionally, impersonation scams involving government employees increased by 58%, with 580 cases reported, leading to SG$67.5 million in losses, a 67.1% increase from the previous year.

As scammers continue to adapt and refine their methods, it remains crucial for the public to stay alert, especially when using messaging and social media platforms. Sound awareness and cautious behaviour is non negotiable in avoiding these scams.


Read more »
Ransomware
Business Security Cyber Attacks Financial Loss Manufacturing Firm Ransomware

Keytronic Lost Over $17 Million Due to a Ransomware Attack

 

Keytronic, an electronic manufacturing services supplier, has said that it lost more than $17 million as a result of a ransomware assault in May. The American technology firm established in 1969 as an Original Equipment Manufacturer (OEM) of keyboards and mice, but has since grown to become one of the leading global manufacturers of printed circuit board assembly (PCBA), with operations in the United States, Mexico, China, and Vietnam. 

In a filing with the Securities and Exchange Commission (SEC) last Friday, Keytronic stated that it detected the incident on May 6 after outages at its Mexico and U.S. sites affected business systems allowing bot operations and corporate services. 

"Due to this event, the Company incurred approximately $2.3 million of additional expenses and believes that it lost approximately $15 million of revenue during the fourth quarter," the company noted. "Most of these orders are recoverable and are expected to be fulfilled in fiscal year 2025. Partially offsetting these additional expenses was an insurance gain in the amount of $0.7 million that was also recorded during the quarter.” 

Keytronic originally disclosed in a May filing that the hack required it to suspend domestic and Mexican operations for two weeks during the incident response. The corporation also stated that the hackers stole private data from its systems during the intrusion. While Keytronic has yet to identify the attack to a specific threat group, the Black Basta ransomware gang claimed responsibility in late May and published all of the data stolen from the company's systems. 

The Black Basta ransomware gang claimed responsibility for the attack in late May and released what they claimed to be all of the data harvested from the company's systems, however Keytronic has not yet linked the attack to a specific threat group.

During the hack, the ransomware gang claimed to have access to several types of data such as HR, finance, engineering, and corporate files. Black Basta's dark web leak website published screenshots of employees' passports and social security cards, customer presentations, and company records. Black Basta is a Ransomware-as-a-Service (RaaS) operation that first appeared in April 2022 and has since claimed numerous high-profile victims, including government contractors and healthcare organisations.
Read more »
Vulnerability
Awareness Cyber Criminals Cyber Fraud Cybersecurity elderly Financial Loss fraud prevention Online Scams Scams vigilance Vulnerability

India's Digital Rise Sees Alarming Surge in Online Scams Targeting the Elderly

 

With India advancing in the digital landscape, the country is also witnessing a concerning rise in online scams. In recent months, thousands of individuals have lost substantial sums to these cyber criminals, either hoping to earn more money or after being threatened. Scammers employ new tricks, targeting people across all age groups, with a notable increase in elderly victims. Cyber criminals use increasingly sophisticated techniques to exploit the vulnerability and trust of senior citizens, causing significant financial and emotional distress.

In one case from Bengaluru, a 77-year-old woman named Lakshmi Shivakumar lost Rs 1.2 crore to a scam. It began with a call from someone posing as a Telecom Department representative, falsely claiming a SIM card in her name was involved in illegal activities in Mumbai. The caller mentioned a complaint with the Mumbai Crime Branch to add credibility.

Within hours, she received another call from individuals impersonating Mumbai Crime Branch officers, accusing her of laundering Rs 60 crore and demanding her bank account details for verification. Using threats of arrest and showing a fabricated FIR and arrest warrant, the scammers coerced her into sharing her bank details, ultimately transferring Rs 1.28 crore from her account, promising the money's return after the investigation.

In another case from Chandigarh, an elderly woman was deceived out of Rs 72 lakh under the pretense of a digital arrest scam. She received a call from someone claiming to be from the Central Bureau of Investigation (CBI) office in Andheri, Mumbai, falsely implicating her in a drug case connected to a man named Naresh Goyal and threatening to freeze her bank accounts.

The scammer linked her ATM card to the suspect and claimed obscene messages from her phone were circulating. Under immense pressure, she complied with the demands, participating in a video call where a fake police ID was shown. Over a week, the scammers defrauded her of Rs 72 lakh, promising to return the money after proving her innocence.

Older people are particularly vulnerable to such scams due to several reasons. They often struggle to keep up with the latest technology and digital security measures, making them easy targets for tech-savvy criminals. Additionally, older adults are more likely to trust authoritative figures and may not recognize the signs of deceit in official-looking communications. Their financial stability and natural inclination to trust and cooperate with law enforcement further increase their susceptibility.

How to stay safe and protect the elderly from scams

To protect the elderly from falling prey to such scams, awareness and vigilance are crucial. Here are some essential tips:

  • Inform elderly family members about common types of scams and the tactics used by fraudsters. Regular discussions can help them recognize and avoid potential threats.
  • Encourage seniors to verify any unsolicited calls or messages by contacting the official organization directly using known contact details, not the ones provided by the caller.
  • Ensure that devices used by the elderly have updated security software to protect against malware.
Read more »
Wireless
Cyber Scammers cyber threat Cyberattacks CyberCrime FBI FCC Financial Loss Reddit SIM SIM swap Swap Scam T-Mobile Technology Verizon Wireless

Inside Job Exposed: T-Mobile US, Verizon Staff Solicited for SIM Swap Scam

 


T-Mobile and Verizon employees are being texted by criminals who are attempting to entice them into swapping SIM cards with cash. In their screenshots, the targeted employees are offering $300 as an incentive for those willing to assist the senders in their criminal endeavours, and they have shared them with us. 

The report indicates that this was part of a campaign that targets current and former mobile carrier workers who could be able to access the systems that would be necessary for the swapping of SIM cards. The message was also received by Reddit users claiming to be Verizon employees, which indicates that the scam isn't limited to T-Mobile US alone. 

It is known that SIM swapping is essentially a social engineering scam in which the perpetrator convinces the carrier that their number will be transferred to a SIM card that they own, which is then used to transfer the number to a new SIM card owned by the perpetrator. 

The scammer can use this information to gain access to a victim's cell phone number, allowing them to receive multi-factor authentication text messages to break into other accounts. If the scammer has complete access to the private information of the victim, then it is extremely lucrative. 

SIM swapping is a method cybercriminals utilize to breach multi-factor authentication (MFA) protected accounts. It is also known as simjacking. Wireless carriers will be able to send messages intended for a victim if they port the victim’s SIM card information from their legitimate SIM card to one controlled by a threat actor, which allows the threat actor to take control of their account if a message is sent to the victim. 

Cyber gangs are often able to trick carrier support staff into performing swaps by presenting fake information to them, but it can be far more efficient if they hire an insider to take care of it. In the past, both T-Mobile and Verizon have been impacted by breaches of employee information, including T-Mobile in 2020 and Verizon last year, despite it being unclear how the hackers obtained the mobile numbers of the workers who received the texts. 

The company stated at the time that there was no evidence that some of the information had been misused or shared outside the organization as a result of unauthorized access to the file, as well as in 2010 a Verizon employee had accessed a file containing details for about half of Verizon s 117,00-strong workforce without the employee's authorization.

It appears that the hackers behind the SIM swap campaign were working with outdated information, as opposed to recent data stolen from T-Mobile, according to the number of former T-Mobile employees who commented on Reddit that they received the SIM swap message. As the company confirmed the fact that there had not been any system breaches at T-Mobile in a statement, this was reinforced by the company. 

Using SIM swap attacks, criminals attempt to reroute a victim's wireless service to a device controlled by the fraudster by tricking their wireless carrier into rerouting their service to it. A successful attack can result in unauthorized access to personal information, identity theft, financial losses, emotional distress for the victim, and financial loss. Criminals started hijacking victims' phone numbers in February 2022 to steal millions of dollars by performing SIM swap attacks. 

The FBI warned about this in February 2022. Additionally, the IC3 reported that Americans reported 1,075 SIM-swapping complaints during the year 2023, with an adjusted loss of $48,798,103 for each SIM-swapping complaint. In addition to 2,026 complaints about SIM-swapping attacks in the past year, the FBI also received $72,652,571 worth of complaints about SIM-swapping attacks from January 2018 to December 2020. 

Between January 2018 and December 2020, however, only 320 complaints were filed regarding SIM-swapping incidents resulting in losses of around $12 million. Following this huge wave of consumer complaints, the Federal Communications Commission (FCC) announced new regulations that will protect Americans from SIM-swapping attacks to protect Americans from this sort of attack in the future.

It is required by the new regulations that carriers have a secure authentication procedure in place before they transfer the customer's phone numbers to a different device or service provider. Additionally, they need to warn them if their accounts are changed or they receive a SIM port out request.
Read more »
unauthorised access
Cyber Fraud Financial crime Financial Loss Information Technology Online fraud Online Scam OTP unauthorised access

E-Challan Fraud, Man Loses Rs 50,000 Despite Not Sharing Bank OTP

 

In a cautionary tale from Thane, a 41-year-old man, M.R. Bhosale, found himself embroiled in a sophisticated online scam after his father fell victim to a deceptive text message. The incident sheds light on the dangers of trusting unknown sources and underscores the importance of vigilance in the digital age. 

Bhosale's father, a diligent auto-rickshaw driver in Ghatkopar, received a seemingly official text message from the Panvel Traffic Police, notifying him of a traffic violation challan against his vehicle. The message directed him to settle the fine through a designated app called Vahan Parivahan, with a provided download link. Unbeknownst to him, the message was a clever ruse orchestrated by scammers to dupe unsuspecting victims. 

When Bhosale's father encountered difficulties downloading the app, he sought his son's help. Little did they know, their attempt to rectify the situation would lead to financial loss and distress. Upon downloading the app on his device, Bhosale encountered a barrage of One-Time Passwords (OTPs), signalling a red flag. Sensing trouble, he promptly uninstalled the app. 

However, the damage had been done. A subsequent check of his bank statement revealed unauthorized transactions totalling Rs 50,000. With resolve, Bhosale wasted no time in reporting the incident to the authorities. A formal complaint was filed, detailing the deceptive mobile number, fraudulent link, and unauthorized transactions. 

In response, the police initiated an investigation, invoking sections 66C and 66D of the Information Technology Act to pursue the perpetrators and recover the stolen funds. This unfortunate ordeal serves as a stark reminder of the prevalence of online scams and the importance of exercising caution in the digital realm. To avoid falling victim to similar schemes, users must remain vigilant and skeptical of unsolicited messages or unfamiliar apps. 

Blind trust in unknown sources can lead to devastating consequences, as Bhosale's family discovered firsthand. Furthermore, it is essential to verify the authenticity of communications from purported official sources and refrain from sharing personal or financial information without thorough verification. 

In an era where online scams abound, skepticism and diligence are paramount. As the investigation unfolds, Bhosale's story serves as a cautionary tale for all internet users. By staying informed, exercising caution, and seeking assistance when in doubt, individuals can protect themselves from falling prey to online scams.
Read more »
Vulnerabilities and Exploits
Authentication Data security software Financial Loss MFA Microsoft OAuth Third Party Apps Vulnerabilities and Exploits

OAuth App Abuse: A Growing Cybersecurity Threat

User data security has grown critical in an era of digital transactions and networked apps. The misuse of OAuth applications is a serious danger that has recently attracted attention in the cybersecurity field.

OAuth (Open Authorization) is a widely used authentication protocol that allows users to grant third-party applications limited access to their resources without exposing their credentials. While this technology streamlines user experiences and enhances efficiency, cybercriminals are finding innovative ways to exploit its vulnerabilities.

Recent reports from security experts shed light on the alarming surge in OAuth application abuse attacks. Money-grubbing cybercriminals increasingly leverage these attacks to compromise user accounts, with potentially devastating consequences. The attackers often weaponize OAuth apps to gain unauthorized access to sensitive information, leading to financial losses and privacy breaches.

One significant event that underscores the severity of this threat is the widespread targeting of Microsoft accounts. Cyber attackers have honed in on the popularity and ubiquity of Microsoft services, using OAuth app abuse as a vector for their malicious activities. This trend poses a serious challenge to both individual users and organizations relying on Microsoft's suite of applications.

According to a report, the attackers exploit vulnerabilities in OAuth applications to manipulate the authorization process. This allows them to masquerade as legitimate users, granting them access to sensitive data and resources. The consequences of such attacks extend beyond financial losses, potentially compromising personal and corporate data integrity.

The financial motivation behind these cybercrimes, emphasizes the lucrative nature of exploiting OAuth vulnerabilities. Criminals are driven by the potential gains from unauthorized access to user accounts, emphasizing the need for heightened vigilance and proactive security measures.

Dark Reading further delves into the evolving tactics of these attackers, emphasizing the need for a comprehensive cybersecurity strategy. Organizations and users must prioritize measures such as multi-factor authentication, continuous monitoring, and regular security updates to mitigate the risks associated with OAuth application abuse.

The increasing misuse of OAuth applications is a turning point in the continuous fight against cyberattacks. The strategies used by cybercriminals also change as technology does. People and institutions must remain knowledgeable, implement strong security procedures, and work together to protect the digital environment from these new dangers. According to the proverb, "An ounce of prevention is worth a pound of cure."
Read more »
Spear Phishing
Axios Data Breach Financial Loss Ransomware Attacks. Securities and Exchange Commission Sensitive Information Spear Phishing

Security Executives: Navigating Cyber Liability Risks

Businesses and organizations across all industries now prioritize cybersecurity as a top priority in an increasingly digital world. Following cyber threats and breaches, security executives are facing increasing liability issues, as reported in recent studies. In addition to highlighting the necessity of effective cybersecurity measures, the Securities and Exchange Commission (SEC) has been actively monitoring the activities of security leaders.

The SEC's recent complaint against a major corporation underscores the gravity of the situation. The complaint, filed in November 2023, alleges that the security executives failed to implement adequate measures to safeguard sensitive information, resulting in a significant data breach. The breach not only exposed sensitive customer data but also caused financial losses and reputational damage to the company. This case serves as a stark reminder that security executives can be held personally liable for lapses in cybersecurity.

As highlighted in the 2022 Axios report, boardroom cyber threats are becoming increasingly sophisticated, targeting high-level executives and their decision-making processes. Cybercriminals employ tactics such as social engineering, spear-phishing, and ransomware attacks to exploit vulnerabilities in organizational structures. This necessitates a comprehensive approach to cybersecurity that involves not only technological solutions but also robust policies, employee training, and incident response plans.

One invaluable resource for organizations striving to enhance their cybersecurity posture is the National Institute of Standards and Technology (NIST) Cybersecurity Framework. This framework provides a structured approach to managing and reducing cybersecurity risks. It outlines five key functions: Identify, Protect, Detect, Respond, and Recover. By following this framework, security executives can establish a clear roadmap for assessing and improving their organization's cybersecurity capabilities.

Security executives are dealing with an ever-growing amount of accountability in the field of cybersecurity. Reports and recent instances highlight the necessity of taking preventative action to reduce liability risks. An essential instrument for strengthening an organization's defenses against cyber threats is the implementation of the NIST Cybersecurity Framework. Organizations may better safeguard themselves, their stakeholders, and their reputations in an increasingly digital environment by implementing a comprehensive cybersecurity strategy.

Read more »
Software
Cyber Security Financial Loss Hackers Identity Theft Passwords Smishing Scam SMS Phishing Software

Beware: Government's Alert on Smishing Scam Threat

The Indian government has now urgently warned its citizens about the threat posed by smishing scams. Smishing, a combination of the words 'SMS' and 'phishing,' is the practice of hackers sending false text messages to people in an effort to get their sensitive personal information. This official warning serves as a reminder that residents need to be more vigilant and knowledgeable.

The warning highlights that cybercriminals are exploiting SMS communication to carry out their malicious intentions. These messages often impersonate legitimate entities, such as banks, government agencies, or popular online services, luring recipients into clicking on malicious links or sharing confidential information. The consequences of falling victim to smishing can be dire, ranging from financial loss to identity theft.

To shield themselves against this growing menace, citizens are urged to follow certain precautions:

1. Verify the Source: Always double-check the sender's details and the message's authenticity. Contact the organization directly using official contact information to confirm the legitimacy of the message.

2. Don't Click Hastily: Refrain from clicking on links embedded in SMS messages, especially if they ask for personal information or prompt immediate action. These links often lead to fraudulent websites designed to steal data.

3. Guard Personal Information: Never share sensitive information like passwords, PINs, Aadhar numbers, or banking details via SMS, especially in response to unsolicited messages.

4. Implement Security Measures: Install reliable security software on your mobile devices that can detect and block malicious texts. Regularly update the software for enhanced protection.

5. Educate Yourself: Stay informed about the latest smishing techniques and scams. Awareness is a strong defense against falling victim to such tricks.

6. Report Suspicious Activity: If you receive a suspicious SMS, report it to your mobile service provider and the local authorities. Reporting aids in tracking and preventing such scams.

The government's warning serves as a reminder that while technology enriches our lives, it's vital to remain cautious. Cybercriminals are continuously devising new ways to exploit unsuspecting individuals, making it imperative for everyone to stay well-informed and adopt preventive measures.

Read more »
User Security
Cyber Attacks Financial Loss IoT UK UK Businesses User Security

Nearly Half of UK Businesses Suffered Cyber-Assaults in the Past Year

 

The latest findings from the manufacturers' association Make UK and the security software and services company BlackBerry revealed that 42% of UK firms have experienced cyber-attacks in the last year. The survey found that 26% of respondents had significant financial losses as a result of an attack, with losses ranging from £50,000 to £250,000. 

According to the study, production halts were the most frequent impact of cyberattacks (reported by 65% of those impacted), followed by reputational damage (43%). The majority of those who were attacked, 74%, claim that strong cyber-security measures shielded their companies from any harm. 

The Cybersecurity: UK Manufacturing report, which was based on a survey of 112 businesses representing a wide range of sizes and industries, manufacturers face a variety of cyber-security risks, from straightforward employee mistakes to intricate targeted attacks. Maintaining legacy IT (45%), a lack of cyber-skills (38%), and granting access to outside parties for monitoring and maintenance (33%) are listed as the top three cyber-security concerns. 

The industrial Internet of Things (IoT) and Industry 4.0 are seen as the primary drivers of cyberattacks by nearly one in three organizations (30%). A little more than a third (37%) claim that their organizations’ reluctance to adopt new connected technologies has limited their ability to increase efficiency and stifled their ability to expand. 

Smaller businesses are frequently more susceptible to targeted cyberattacks, yet many do not provide staff training on cyber security. A formal cyber-security procedure is now in place for over two-thirds (62%) of manufacturers, which is an increase of 11% from a year ago. Over half (58%) have elevated this obligation to the board level, while a comparable percentage has given a senior manager responsibility for cyber-security. 

Businesses are exposed to increased cyber-security concerns as they use more digital technologies. Ninety-five percent of respondents said they thought their businesses needed cyber-security measures, and two-thirds said that importance had increased over the previous year. 

However, while implementing new technology to increase output, the majority (54%) have chosen not to take any further cyber-security precautions. Along with the cost of maintaining security systems, the initial outlay on cyber-security measures is considered the biggest obstacle (mentioned by 40% of businesses). 

Russia, followed by China, according to three-quarters (75%) of those polled as the biggest cyber threat to their companies. 38% of people worry about threats coming from the UK. 

“Digitisation is revolutionizing modern manufacturing and becoming increasingly important to drive competitiveness and innovation. While cost remains the main barrier to companies installing cyber-protection, the need to increase the use of the latest technology makes mounting a defense against cyber threats essential,” stated Make UK CEO, Stephen Phipson. No business can afford to ignore this issue and while the increased awareness across the sector is encouraging, there is still much to be done.
Read more »
Scam
Cyber Fraud cybercriminals Facebook Ads Financial Loss Phishing Scams Scam

 Facebook: Bogus Event Scammers are Targeting Vendors

 

Victims have experienced nothing but worry as a result of a real-world scam that takes the pleasure out of craft fairs. It may sound strange, but it's a common criticism aimed at small/self-employed business owners who sell their own creations. They sell a range of craft-style things similar to those seen on Etsy and Redbubble in large quantities. Putting these products in front of live audiences at an event will almost certainly increase sales. 

Vendor fraud denotes misdeeds executed on a company's accounts payable (AP) for financial gain by vendors, or an employee. It's a type of scam that includes misrepresenting a vendor's or recipient's account details in AP to reroute payments.

How does this bogus vendor fair operate?

Regardless of location, the mainstream follows a consistent pattern. 
  • The imposters create completely new Facebook accounts and frequently use the same name on many accounts. 
  • They collect information from potential fair exhibitors via multiple web forms wherein name, address, description of sold things, business name, and phone number are all requested. 
  • Payment inquiries are made at this point. The recovery of funds might range from "fairly easy" to "total disaster" depending on the payment type.

How are the victims selected? 

Before claiming why an event is taking place nearby, the fraudsters use the seller's own public information against them, indicating the seller's location or even the types of products sold. The most intriguing aspect of it all is that fake fair frauds aren't an unusual occurrence. It's a legitimate sub-industry populated by devoted con artists. 

For example, false payments — in a payment scheme, the fraudster and employee can create a fictitious vendor (shell company) or manipulate an actual vendor's account to reflect their information. 

Changes to existing checks or the creation of unauthorized checks are examples of check changes. An employee takes checks from a vendor, alters the beneficiary, or forges the vendor's signature, and deposits the monies into an account of their choosing. 

Overbilling — When dealing with large numbers, a vendor expands invoices by adding extra goods or services to invoices raised to your organization. 

Vendor Fraud Classification 
  • Billing Fraud: Employees might manipulate payments in two ways. It can entail creating a fake vendor or generating duplicate payments using a genuine vendor's account. 
  • Fictitious Vendor - An employee with sufficient authority and access creates a fictitious vendor account or a shell corporation, registers it as a vendor, and makes regular payments to it. 
  • Duplicate Payments - An employee impersonates a legitimate vendor, manipulates payment data, and makes duplicate payments on a vendor's invoice. 
  • Check Manipulation: An employee falsifying or altering information on a vendor's check to redirect funds to a personal bank account. 
  • Bribery Acceptance: This sort of fraud is the outcome of an agreement between a vendor and an employee, in which the employee receives personal remittances from the seller in exchange for more advantages or sales.
  • Excess Billing: When a vendor invoices the company for excess quantities/prices than what was previously agreed upon, it is referred to as overbilling. 
  • Price fixing: Two sellers work together to fix prices at greater than normal levels.
  • Bid rigging: A form of fraud that involves collaboration between two or more vendors and workers to secure a procurement contract in favor of the highest bidder.
  • Cyber fraud: Vendor fraud cases are conducted by unknown, unauthorized personnel with no link to either the company or the vendor, making them the most difficult to identify. 

Indicators of threat 

For customers: the seller claims to be unavailable (for example, because they are traveling or have relocated to another country) and demands money before arranging for delivery of the items. They must pay the seller using foreign money transfers, checks, or direct bank transfers. They may receive a forged email receipt from the website's secure payment provider.

For vendors: Even if one is selling an expensive item like a car, the potential buyer is willing to buy your item without seeing it in person. The goods are widely available in the customer's native country, and a possible overseas buyer might be interested in purchasing them (e.g. a car or a couch). The cost of shipping frequently outweighs the cost of the item. 

Measures

Facebook posts without a location tag are an attempt to remain anonymous. Methods of Invoice Matching, Using Data Mining, Methodologies Establishing a fraud helpline might allow staff to report problems without fear of repercussions.

Vendor fraud can have a significant financial impact on a company, it can be avoided by properly developing, evaluating, and updating corporate rules regularly. 
Read more »
Phishing scam
Business Email Compromise Financial Loss Phishing scam

European Cinema Chain Loses an Astonishing US$21.5 Million to a Business Email Compromise




An European-based cinema chain Pathé lost an enormous fortune of around 19 million euros (US$21.5 million) to a business email compromise (BEC) scam in March 2018 by an attack, which kept running for about a month and ultimately costed the organization 10 percent of its aggregate profit.

The scammers here deserted setting the 'fake President' against the 'real CFO' for faking French head office missives to the Dutch management.

Beginning with the following mail:
“We are currently carrying out a financial transaction for the acquisition of foreign corporation based in Dubai. The transaction must remain strictly confidential. No one else has to be made aware of it in order to give us an advantage over our competitors.”

Even however the CFO and Chief considered it odd, they pushed on in any case and still sent more than 800,000 in Euros. At the point when more demands pursued, including a few while the CFO was on furlough—the two executives were fired not long after the head office took note of the situation.

In spite of the fact that they weren't associated with the fraud, Pathé said they could and should have seen the warnings. The business email compromise endeavor was devastatingly effective as they failed to take note of the warnings and there was no security net set up.

Typically a business email compromise is a sort of phishing attack, topped with a dash of 'targeted' social engineering however this specific BEC scam was very intriguing since it featured a somewhat extraordinary way to deal with the attack.

As the business email compromise keeps on developing in ubiquity among the scammers, and it's up to us to battle it. It is progressively essential for any and each organization to consider the BEC important. 

 BECs being a standout amongst the most slippery dangers around it is advised for the all the clients to keep their funds operating at a profit as a need, regardless of the fact that whether they disseminate motion pictures, IT administrations, or anything else for the matter.

Read more »
Subscribe to: Posts (Atom)