^{Managing and Growing Small Businesses} Protect your company from fraud

With the rise of increasingly sophisticated fraud tactics, staying informed is more important than ever. Businesses and individuals alike face evolving threats that require proactive measures to safeguard their assets and data. To support these efforts, we have put together some important information regarding new methods of fraud that are gaining popularity and causing substantial losses to commercial enterprises.

What is Pharming?

Pharming is a sophisticated cyberattack where fraudsters redirect internet users to fake websites without their knowledge or consent. Fraudsters attempt to capture sensitive information on these fake sites such as passwords, login credentials, credit card numbers, account numbers and more. Fraudsters may also intend to install pharming malware on your device.

How does Pharming work?

Banking, online payment and e-commerce websites are usually targeted by fraudsters using Pharming for data and identity theft using several tactics:

• DNS Spoofing or Poisoning – Domain Name System or DNS is responsible for converting the text of domain names into IP addresses that computers can understand. This DNS in a server for a legitimate website can be modified by fraudsters and replaced with their own IP address, which ends up directing you to the fake website instead of the legitimate one.
• Malware - a fraudster may send malicious code in an email, which then installs a virus or Trojan on the computer. This code changes the computer’s hosts file, directing users away from the intended website and to a fake website instead.
• Man-in-the-Middle (MITM) attacks – using various techniques that infect Local Area Networks, fraudster will intercept user traffic from the victim and redirect it to a fake website to gather data.

How do I protect my business from Pharming?

• Always use a trusted and verified Internet Service Provider (ISP) and Virtual Private Network (VPN) service.
• Ensure all web connections are secure. Look for the padlock symbol and https:// in the website URL before entering any sensitive information.
• Enable two-factor authentication (2FA) on websites wherever possible. This ensures additional verification steps are required should login credentials become compromised.
• Change the default password on your routers and wireless access points.
• Be cautious of clicking on links and attachments in emails and other messages, especially from unknown senders.
• If there are suspicious or unusual payment instructions, check with the initiator using a different communication channel. Do not reply to the email requesting the payment as you may be responding to the fraudster.
• Use antivirus and anti-malware software on your devices and regularly update the software to protect against threats.
• Carefully check the spelling of each sender’s email address.

What is Business Email Compromise (BEC)?

Business Email Compromise is when the fraudster infiltrates company communications and manipulate employees into making payments to a bank account under their control. The impostors carefully study their targets to gain information about the company’s employees either by way of phishing or by directly hacking the company computer network or email infrastructure. The impostor may also gain direct access to company email accounts or create an email address that looks very similar to those belonging a company executive such as the CEO or CFO emails like [email protected] vs [email protected]. The difference in the fake email address will be very subtle and easy to overlook The fraudster then sends an email either originating or appearing to originate from the company executive to the finance department, instructing them to make payment to a specific beneficiary. Employees may be reluctant to approach senior executives to verify these payments and fall prey to the scam.

How do I identify a fraudulent email?

• Unusual email requests from company executives
• Payment instructions via email or not following normal company protocol
• Payment requests marked as ‘urgent’
• Requests to keep the payment confidential
• Emails containing spelling mistakes and poor grammar
• Requests to change creditor bank account details

How do I protect my business from BEC?

• Ensure that your staff are made aware of how BEC is perpetrated
• Configure your email system to display a notification for all emails originating from outside your organization
• Verify all suspicious or unusual payment instructions with the initiator using a different communication channel. Don’t simply reply to the email requesting the payment as you may be responding to the fraudster
• Carefully check the spelling of email addresses
• Keep anti-virus, firewall and malware protection up to date
• Contact your suppliers and business partners using known or public directory details to verify all requests to change bank account details
• Enable spam filters, anti-spoofing and block access to suspicious websites
• Don't click on any email attachments or web-links sent to you by unknown entities

General security precautions

• Avoid simple passwords or PIN numbers such as your date of birth and change your passwords periodically
• Shield your PIN from third party observers when using an ATM or Point of Sale device
• Ensure that your cheque book is kept in a secure location
• The Bank will not be held responsible for losses incurred where customers have divulged confidential bank passwords and Personal Identification Number (PIN) to third parties