Cyberattacks can now target anyone, but it’s no secret that executives face the greatest risk. CEOs, team leaders, and business managers are prime targets for sophisticated scams. These scams often involve emails or messages that impersonate their staff, making it crucial for organizational leaders to stay alert to potential security threats.
Read this article to learn about common scam tactics and effective security measures you can take to safeguard yourself, your company, and your team members.
Most Common Executive Scams
New scam methods emerge every day, but a few classic ones remain the most prevalent even today. Here’s what they’re all about.
Phishing scams
Phishing attacks are no longer limited to poorly written emails claiming your bank account is suspended from banks you’ve never heard of. As technology has evolved, phishing tactics have become a lot more sophisticated and convincing.
Modern scammers research their victims across multiple platforms to build detailed profiles before choosing their approach. They then carefully cultivate trust by posing as company clients, business partners, or even coworkers from different departments. These attackers request small pieces of sensitive information, claiming they need it to complete regular tasks. However, once obtained, they use this data to breach company systems, steal funds, or launch further attacks.
CEO fraud
CEO fraud is a very common and highly complex email scam that, if successful, can cause severe financial loss and reputational damage to the organization.
In these schemes, cybercriminals impersonate a company’s CEO and email employees requesting urgent money transfers. Because the request appears to come from leadership and demands immediate action, HR or accounting staff may approve wire transfers without thoroughly verifying the sender’s email address.
Official impersonation fraud
Scammers can also exploit official matters by sending executives fake invoices or threatening legal action. They impersonate authorities to pressure company leaders into paying fake fees. In some cases, scammers suggest that failure to comply could lead to suspension or legal consequences, increasing the pressure on the target.
This tactic is especially common against companies doing international business. Scammers claim to be customs agents holding their shipments until they pay fake fees. In other cases, hackers pose as government officials offering business grants that don’t exist. Some even pretend to be lawyers demanding payment for made-up lawsuit settlements, hoping you’ll wire money to their offshore accounts before you can verify their claims.
Avoid Scams in 5 Steps
Executives face many online threats they need to watch out for. However, using proven security tools and practices can help protect you and your organization. Here’s where you can start:
1. Verify all communications
Don’t rely on a single communication channel for important requests. When you receive one, verify it through another trusted channel or direct phone call before approval. This will protect you and your team from impersonation scams since attackers typically only have access to one compromised channel, like email.
2. Use multi-factor authentication (MFA)
All business-related systems, including email, banking, and management platforms, should be secured with multi-factor authentication. MFA adds an extra security layer by requiring a second verification step when logging into your accounts, usually through your phone. This makes it nearly impossible for attackers to access your accounts even if they obtain your password.
3. Secure your connections with a VPN
Always use a VPN when connecting to your organization’s sensitive files or systems. VPNs encrypt your online connection and make all data traveling from and to company devices unreadable to unauthorized users. This is especially important if you or anyone at your company works remotely, as many public networks, like cafe Wi-Fi, are unsecured.
4. Train employees on cybersecurity
Conduct regular cybersecurity training for your employees to help them spot phishing attempts, CEO fraud, and other scams. Teach them how to use security tools and handle urgent requests safely. Well-trained employees can help protect your business from scams and financial or reputational damage.
5. Utilize a password manager
Lastly, invest in a team password manager. Using this tool to store and share your organization’s account credentials can highly reduce the risk of unintentional leaks. Password managers also generate strong, unique passwords for each account, which makes it much harder for hackers to break into your business systems.
Keep Your Business Safe
As a CEO or executive, you may be targeted for a social engineering scam, but you can protect yourself and your organization from potential attacks. Protect yourself from scams using MFA, VPNs, and password managers while ensuring your employees are trained, and all communications are verified through multiple channels.
When choosing the best password manager, VPN, or MFA tools, go over review sites and professional cybersecurity resources rather than relying solely on social media recommendations to make an informed decision.
Blog received on email
