In this blog, our Chairman of the Board of Teichmann International (IT Solutions) AG Dr Fabian Teichmann discusses the deceptive world of CEO Fraud and the importance of company culture among other factors in fostering resilience.
Today we unravel the deceptive world of CEO Fraud. This is a sophisticated scam that targets our businesses, but with awareness we can thwart it.
Picture this: an employee receives an urgent email from their CEO who appears to be requesting an immediate transfer of funds for a confidential deal. In reality, this email isn't from the CEO at all. It's from a scammer who has done their homework crafting a convincing impersonation to manipulate employees into sending money or sensitive information.
CEO fraud also known as Business Email Compromise (BEC) leverages the power of authority and urgency. Scammers often conduct extensive research gathering details about the company to make their requests as authentic as possible.
So how do we protect our companies from this cunning fraud? Vigilance is paramount. Always verify the legitimacy of requests involving money or confidential information, especially if the request deviates from standard procedures.
Pick up the phone and call the requester using a verified number or establish a multi-person approval process for financial transactions. Educate your team about these scams. Regular training sessions on cyber security can make a significant difference. Encourage a culture where it's okay to question and verify but due diligence is seen as a strength not a nuisance. Remember CEO fraud preys on human vulnerabilities but by fostering awareness and a culture of verification, we empower ourselves against these attacks. Let's protect our workplaces with knowledge, caution and collective vigilance.
But what if you find yourself amidst a CEO fraud incident? Act swiftly. Time is critical in these situations. First immediately alert your financial institution. They may be able to stop the transaction or work with you to recover the funds. Notify your company's upper management and the IT department to secure your email systems against further attacks then document everything. Collect all evidence related to the fraudulent communications as this information will be crucial for the investigation. Report the incident to the relevant authorities. They can provide valuable assistance and may help prevent further crimes.
Remember: being targeted does not mean you are without recourse. Reach out to legal council experienced in cyber fraud. They can guide you through the complexities of the situation and help mitigate any legal risks.
And let's not forget the power of reflection and learning. Review your internal procedures to understand how the fraud occurred. TIghten your protocols and use this experience to bolster your defenses for the future. In the aftermath of CEO fraud it's easy to feel defeated but let's channel this into positive action. By strengthening our systems, enhancing our vigilance, and fostering open communication, we can emerge stronger and more resilient.
Together we can turn a moment of deception into a step forward in our cyber security journey.
We provide 360° protection of your assets & people against strategic cyber risk.
+41 58 458 7788 E-MailDr Fabian Teichmann is Chairman of the Board of Teichmann International (IT Solutions) AG and Group Chairman of Teichmann International AG. An accomplished attorney-at-law and scholar, Dr Teichmann is a leading expert in legal risk compliance, and anti money laundering (AML) strategy.
He has authored over 200 peer-reviewed publications with recent work including articles on the legal and business implications of ransomware attacks and legal compliance in cyberattack response.
