$2.3 Billion Lost to CEO Fraud
Posted by: Timothy Weaver on 04/11/2016 11:12 AM
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The FBI estimates that businesses have lost close to $2.3 billion from so called “CEO fraud” e-mail scams.
These scams are not only confined to the U.S., it has been seen in at least 79 countries.
The FBI estimates that organizations victimized by CEO fraud attacks lose on average between $25,000 and $75,000. But some CEO fraud incidents over the past year have cost victim companies millions — if not tens of millions — of dollars.
Fraud scams have cost companies such as Mattel, $3 million; Ubiquiti disclosed in a quarterly financial report that it suffered a whopping $46.7 million hit because of a CEO fraud scam; and $17.2 million from The Scoular Co.
The FBI urges businesses to adopt two-step or two-factor authentication for email, where available, and to establish other communication channels — such as telephone calls — to verify significant transactions. Businesses are also advised to exercise restraint when publishing information about employee activities on their Web sites or through social media.
Source: Krebs On Security
These scams are not only confined to the U.S., it has been seen in at least 79 countries.
The FBI estimates that organizations victimized by CEO fraud attacks lose on average between $25,000 and $75,000. But some CEO fraud incidents over the past year have cost victim companies millions — if not tens of millions — of dollars.
Fraud scams have cost companies such as Mattel, $3 million; Ubiquiti disclosed in a quarterly financial report that it suffered a whopping $46.7 million hit because of a CEO fraud scam; and $17.2 million from The Scoular Co.
The FBI urges businesses to adopt two-step or two-factor authentication for email, where available, and to establish other communication channels — such as telephone calls — to verify significant transactions. Businesses are also advised to exercise restraint when publishing information about employee activities on their Web sites or through social media.
Source: Krebs On Security
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