Report from Brian Krebs www.krebsonsecurity.com explains how scammers are spoofing emails pretending to be from heads of corporations and requesting funds through wire transfer.
Known variously as “CEO fraud,” and the “business email compromise,” this swindle is a sophisticated and increasingly common one targeting businesses working with foreign suppliers and/or businesses that regularly perform wire transfer payments. In January 2015, the FBI warned that cyber thieves stole nearly $215 million from businesses in the previous 14 months through such scams, which start when crooks spoof or hijack the email accounts of business executives or employees.
In February, con artists made off with a whopping $17.2 million from one of Omaha, Nebraska’s oldest companies — The Scoular Co., an employee-owned commodities trader. According to Omaha.com, an executive with the 800-employee company wired the money in installments last summer to a bank in China after receiving emails ordering him to do so.
Working with investigators, the company determined that the fraudsters had registered the phony domain and associated email account with Vistaprint, which offers a free one-month trial for companies looking to quickly set up a Web site.
“Turns out the scammers set up the domain and email address that morning, the same day as wire request,” Judy said. “When that email came through, the difference didn’t jump out at me. In hindsight, it blows my mind that it doesn’t bother me more than it did. But in the hustle and bustle of the day, I was not on guard for something like this. Now, I’m second-guessing everything.”