Protecting your business from Fake President Fraud

Protecting your business against modern day fraudsters – the current most frequently used fraud being Fake President Fraud – in cyber-attack fraud is a constant risk, warns Stockport based C&C Insurance Brokers.

Business owners and employees need to be aware of the sophisticated tactics used to exploit companies.

Cyber attackers are increasingly relying on human interaction to access and exploit businesses, tricking individuals into sharing sensitive information or performing an action, resulting in financial loss for the business.

The current most frequently used fraud is Fake President Fraud. This scam involves convincing an employee to make an emergency transaction. The fraudster impersonates a business owner requesting an urgent bank transfer of a large amount of money, appearing to be needed urgently. The communication appears real, with sense of insistence and from the known person, putting pressure on the employee to action immediately.

These types of frauds are created by well organised criminal organisations, relying heavily on putting the employee under pressure and counting on their discretion and trust.

C&C Claim’s team are seeing an increase in clients who are falling victim to these types of crimes – Fake President Fraud. One example, an employee of an SME received an email from the Managing Director authorising a money transfer, which was not unusual and they processed accordingly. The email however was not from the MD but from a Fake President Fraudster / hacker and only discovered some days later to be fraudulent.

Malcolm Cooke, Managing Director of C&C advises businesses to educate employees as first line of defence to help prevent cyber-attackers:

We are seeing an increase in businesses of all sizes falling victim to these types of attacks, even the best IT security systems can’t protect against the human aspect of these crimes.

“Employees who are alert to the dangers and able to recognise the commonly used tactics are essential to help protect businesses against cyber fraud. Your IT systems security won’t help if employees are tricked into clicking a malicious link or defrauded into processing a payment. It’s essential that business owners raise awareness of this crime and educate their employees on what to look out for.”

How to protect your business – first steps

·  Educate and train all employees on the types of attacks and what to look out for

·  Review existing processes and procedures to identify potential risk

· Put in place additional levels of security for more valuable transactions

· Keep software up to date

· Stay alert and have a system to challenge and check transactions

Expert Opinion provided C&C Insurance Brokers