Phishing attacks have been around for decades, and cybercriminals are looking for ever-cunning ways to develop sophisticated targeted attacks. CEO fraud is a growing type of phishing scam on the rise. A 2020 report claims that the CEO email scam has experienced a 48% increase in the second quarter of 2020.
These CEO-targeted crimes can cost organizations billions of dollars in losses or even ruin their reputation. That said, organizations need to be aware of these crimes before they can be in a position to implement CEO fraud prevention measures.
This article discusses the types of CEO email frauds and how to prevent them.
But first, what is CEO fraud?
What is CEO Fraud?
Another name for CEO fraud is whaling. It’s a type of Business Email Compromise (BEC), where attackers use the CEO or another high-level company executive’s email address and credentials. This targeted phishing attack type uses sophisticated social engineering techniques to convince employees to perform fraudulent actions.
The 2021 Anti-Phishing Working Group Phishing Activity Trends reported that Business Email Compromise attacks are becoming increasingly costly for organizations. In successful attacks, the average wire transfer increased from $48,000 to $106,000—more than double the previous year. With this number, it’s no surprise that the FBI named BEC a $26 billion scam. These scammers target top-level business personnel because they have the authority to request large wire transfers…
