Business Email Compromise Attacks Cost $310 Million a Month in 2018

New figures have been released by the U.S. Financial Crimes Enforcement Network (FinCEN) on 2018 Business Email Compromise attacks. The latest FinCEN report highlighted the pervasiveness of the threat and potential for the attacks to result in serious financial harm.

Business Email Compromise (BEC) attacks are concerned with gaining access to a business email account and using that account to send messages to other individuals in an organization and business contacts. While compromised email accounts can be used for a variety of purposes, with BEC the primary goal is usually to convince an employee to make a fraudulent wire transfer or send sensitive information such as employee W-2 Forms.

Social engineering techniques are used to obtain the credentials of a high-level executive and convince an employee to make a fraudulent transfer. While at face value these scams are simplistic – they involve sending an email that requests a bank transfer be made – the scams are often highly sophisticated.

More than $300 Million a Month Was Lost to 2018 Business Email Compromise Attacks

The FinCEN report shows why these attacks are worth the effort. The average fraudulent transaction value in 2018 was $125,439 and $310 million per month was lost to BEC scams in 2018.

FinCEN received approximately 1,100 suspicious activity reports in 2018 that were attributed to BEC scams. It should be taken into consideration that many businesses are not obliged to report security breaches such as BEC scams, so the total losses will be considerably higher.

BEC attacks are also being conducted far more frequently and losses to the scams have skyrocketed. The 2016 FinCEN report indicates at least $110 million was lost to BEC scams. Losses to BEC scams have increased by 172% increase in just two years.

There has been a marked change in BEC scam tactics over the last two years, which has helped to increase the dollar amount of each fraudulent transaction.

As previously mentioned, the scams involve compromising an email account, which was commonly the email account of the CEO or CFO. The email accounts were used to send wire transfer requests and the average transaction value was $50,272. The 2018 figures show that there has been a shift from attacks that impersonate the CEO to attacks impersonating contractors and other vendors.

If a vendor’s email account is compromised, fake invoices can be sent to all companies that the vendor works for. Further, the typical amount of a vendor invoice is substantially higher than the transfer amounts typically requested by CEOs.

FinCEN’s figures show the average fake invoice transaction value was $125,439 for fake invoices from contractors, which is $75,167 more than the typical CEO email request.

FinCEN’s 2017 figures indicate 33% of BEC attacks involved impersonation of the CEO, but the percentage had fallen to just 12% in 2018. 39% of all BEC attacks in 2018 involved the impersonation of an outside entity such as a business associate, contractor, or vendor.

How to Improve Defenses Against BEC Attacks

With attacks increasing and losses spiraling, businesses need to take steps to reduce risk by improving email security and providing further training to employees. Employees should be made aware of the risk of BEC attacks, told about the latest threats, and should be taught how to identify a scam email. Policies should also be developed and implemented which require verification of all emailed transfer requests and bank account changes.

Training and policies will help to create a strong last line of defense, but the primary goal should be blocking the scam emails at the email gateway to ensure end users are not tested. That requires a powerful anti-spam and anti-phishing solution such as SpamTitan. SpamTitan blocks more than 99.97% of all spam and malicious emails to keep business inboxes threat free.

For further information on SpamTitan and other cybersecurity protections to reduce the risk of phishing and BEC attacks, contact TitanHQ today.

Debunking Misconceptions About Email Archiving

There are several common misconceptions about email archiving which are preventing many businesses from creating an email archive. It is often only when email data needs to be recovered that businesses realize just how important an email archive is. Of course, by then it is too late.

In this post we debunk some of the email archiving myths and explain why email archiving is now essential for almost all businesses, regardless of industry or business size.

Misconception #1: An Email Archive is the Same as a Backup

The recent increase in ransomware attacks has highlighted the importance of creating backups of all critical data. An email backup contains all messages in a mailbox. If anything happens to that mailbox – it is encrypted by ransomware for instance – all email data can be recovered.

An email archive could serve the same purpose but differs in some very important ways. An email archive serves as a depository for all emails that are no longer required but need to be retained to meet state and federal data retention requirements.

If an email, group of emails, needs to be recovered, the messages can be located and restored very quickly. That is because the archive includes email metadata and the archive is searchable. A backup is intended for mass email recovery. Finding individual emails in a backup can be incredibly time consuming, costly, and difficult.

You can restore emails from a backup following a ransomware attack, but for eDiscovery and dealing with customer complaints, an email archive is required.

Misconception #2: Email Archives are Only Necessary in Highly Regulated Industries

The Sarbanes-Oxley Act of 2002 (SOX) requires organizations maintain an audit trail for 7 years, which includes email communications. However, it is not only organizations covered by SOX that must retain emails. Several states have enacted laws that require email data to be retained for a set period of time.

Further, no company is immune to litigation. The Federal Rules of Civil Procedure require email communications to be produced as part of eDiscovery. Those communications must be found and provided quickly, which is only possible with an email archive. The failure to produce emails can result in significant financial penalties.

Misconception #3: Email Archives Must be Stored On-Premises

There is no law that states email archives must be housed on-premises, but many companies mistakenly believe that this is necessary. They then purchase expensive hardware and software to create an on-premises email archive. This is often out of security concerns as IT departments feel they can better protect email data in house.

However, cloud service providers offer the same if not greater security, and their solutions require no hardware purchases nor ongoing hardware and software maintenance. Businesses are therefore paying unnecessarily high prices for their email archive.

There is no need to purchase expensive hardware to store sizable email archives and resources do not need to be made available to maintain the hardware and software. On-premises systems also tend to lack flexibility, whereas cloud-based email archives are extremely scalable. When greater capacity is required, additional storage space is always available.

Misconception #4: Long-Term Email Storage Increases Risk

Many businesses only retain emails for a limited period of time, such as 90 days, after which messages are permanently deleted. There is a common view that If an email is deleted, it cannot cause any harm. However, if a complaint is received or emails need to be produced for eDiscovery, the failure to produce those messages could see a company liable for data destruction.

If you want to meet compliance requirements, reduce costs, and be able to recover email data instantly, an email archive is required.

To find out more about the benefits of email archiving and for further information on ArcTitan. Contact TitanHQ today.

New Office 365 Phishing Scams Detected

Two new Office 365 phishing scams have been detected in the past few days. One scam uses a fake Office 365 site to deliver the Trickbot Trojan and the other is a spear phishing campaign targeting Office 365 administrators to capture their credentials.

The Trickbot campaign uses a realistic domain – get.office365.live – that has all the typical elements of a genuine Microsoft website, including links to Microsoft resources. The website, identified by MalwareHunterTeam, detects the visitor’s browser and displays a popup within a few seconds of landing on the website.

A different warning is displayed for Firefox and Chrome users, with the associated logos. The warning comes from either the Chrome or Firefox Update Center. The message states that the user has an older version of the browser, which may cause incorrect site mapping, loss of all stored and personal data, and browser errors. An update button is supplied to download the browser update.

If the update button is clicked, it triggers the download of an executable file called upd365_58v01.exe. If that executable is run, the Trickbot Trojan will be downloaded and inserted into a svchost.exe process. That makes it harder for the user to detect the information stealer through Task Manager.

The Trickbot Trojan has several capabilities. It is a banking Trojan that can intercept banking credentials using webinjects. It also contains a password grabbing module which steals saved login credentials, autofill information, browsing history, and Bitcoin wallets. The malware also serves as a downloader for other malware variants and a module also been developed for propagation which includes the EternalBlue exploit.

Once installed, the malware stays in continuous contact with its C2. Due to the obfuscation methods used, the infection is unlikely to be detected by an end user, but the network admin may notice unusual traffic or attempts to connect to blacklisted domains.

This is a professional campaign that is likely to fool many end users. It is currently unclear whether traffic is being directed to the site through malvertising redirects or phishing emails.

Office 365 Admins Targeted

A phishing campaign has been detected which is targeting Office 365 administrators. Fake browser warnings are used to trick admins into disclosing their login credentials.

Emails have been constructed using the Microsoft and Office 365 logos which contain a warning about an aspect of Office 365 which requires the admin’s immediate attention. One message warns the admin about a mail redirect on an Office 365 inbox which indicates there has been an account compromise. Another advises the admin that the company’s Office 365 licenses have expired.

The emails contain a link for the admin to use to login to their Office 365 account to address the problem. The user will be directed to a webpage on the windows.net domain which has a valid certificate from Microsoft. The Microsoft login box is identical to that used on the Microsoft site.

Most admins will be vigilant and wary of warnings such as these. Even if the links are clicked, admins are likely to check the domain to make sure it is genuine. However, these scams are conducted because they do work. Some admins will be fooled and will disclose their credentials.

Admin credentials are highly valuable as they allow an attacker to create new office 365 accounts, access other user’s mailboxes, and send phishing emails from other accounts on the domain. These targeted attacks on admins are becoming more common due to the high value of the accounts and the range of attacks they allow a hacker to perform.

There is no single cybersecurity solution that will provide total protection from phishing attacks. What is needed is a defense in depth approach. End users should be provided with ongoing security awareness training to ensure they are aware of the most common threats and know how to identify potential scams. Phishing simulations are useful for gauging how effective training has been.

However, the priority must be to block these attacks and prevent end users from being tested. An advanced spam filter such as SpamTitan blocks more than 99.97% of spam and phishing emails. SpamTitan scans all incoming messages for malware and uses dual anti-virus engines for greater accuracy. A sandboxing feature has also now been added to allow the safe execution and analysis of suspicious email attachments.

WebTitan serves as an additional security layer that prevents end users from visiting malicious websites. The DNS filter can be used to exercise control over the types of websites that can be visited by employees and blocks all attempts to visit blacklisted websites, such as those that have been used for malware distribution, scams, or phishing.

Contact TitanHQ today to find out more about SpamTitan and WebTitan for SMBs and MSPs, the different deployment options, pricing information, and to book a product demonstration.

An Easy Way to Block Email Impersonation Attacks on Businesses

Ransomware attacks are soaring and phishing and email impersonation attacks are being conducted at unprecedented levels. Cybersecurity defenses are being tested like never before.

Large enterprises are big targets as they store vast quantities of personal data which can be used for identity theft. Retailers are being attacked to obtain credit/debit card information and attacks on hospitals provide sensitive health data that can be used for medical identity theft.

Small businesses are not such an attractive target, but they do store reasonable amounts of customer data and attacks can still be profitable. A successful attack on Walmart would be preferable, but attacks on SMBs are far easier to pull off. SMBs typically do not have the budgets to invest in cybersecurity and often leave gaps that can be easily exploited by cybercriminals.

One of the most common methods of attacking SMBs is phishing. If a phishing email makes it to an inbox, there is a reasonable chance that the message will be opened, the requested action taken and, as a result, credentials will be compromised or malware will be installed.

The 2018 KnowBe4 Phishing Industry Benchmarking Report shows that on average, the probability of an employee clicking on a malicious hyperlink or taking another fraudulent request is 27%. That means one in four employees will click a link in a phishing email or obey a fraudulent request.

Email impersonation attacks are often successful. They involve sending an email to an individual or small group in an organization with a plausible request. The sender of the message is spoofed so the email appears to have been sent from a known individual or company. The email will use a genuine email address on a known business domain. Without appropriate security controls in place, that message will arrive in inboxes and several employees are likely to click and disclose their credentials or open an infected email attachment and install malware. Most likely, they will not realize they have been scammed.

One method that can be used to prevent these spoofed messages from being delivered is to apply Domain-based Message Authentication, Reporting and Conformance (DMARC) rules. In a nutshell, DMARC consists of two technologies – Sender Policy Framework (SPF) and DomainKeys Identified Mail (DKIM).

SPF is a DNS-based filtering control that helps to identify spoofed messages. SPF sets authorized sender IP addresses on DNS servers. Recipient servers perform lookups on the SPF records to make sure that the sender IP matches one of the authorized vendors on the organization’s DNS servers. If there is a match the message is delivered. If the check fails, the message is rejected or quarantined.

DKIM involves the use of an encrypted signature to verify the sender’s identity. That signature is created using the organization’s public key and is decrypted using the private key available to the email server. DMARC rules are then applied to either reject or quarantine messages that fail authentication checks. Quarantining messages is useful as it allows administrators to check to make sure the genuine emails have not been flagged incorrectly.

Reports can be generated to monitor email activity and administrators can see the number of messages that are being rejected or dropped. A sudden increase in the number of rejected messages indicates an attack is in progress.

DMARC is not a silver bullet that will stop all email impersonation and phishing attacks. It is an extra layer of security that can greatly reduce the number of threats that arrive in inboxes.

TitanHQ’s anti-phishing and anti-spam solution – SpamTitan – incorporates DMARC to protect against email impersonation attacks along with advanced anti-malware features, including a Bitdefender-powered sandbox.

For further information securing your email channel and blocking email-based threats, contact TitanHQ today.

Increase in Cyberattacks on Ships Prompts U.S. Coast Guard Warning

The past few months have seen an increase in reported cyberattacks on ships. The rise in cyberattacks on the commercial shipping network has prompted the U.S. Coast Guard to issue a warning.

This is the second such warning to be issued by the U.S. Coast Guard in the past three months. Together with a recent shipping industry report, they confirm that shipping companies and commercial vessels are being targeted by hackers and many of those attacks are succeeding.

Ships are now largely controlled by computers and mouse clicks and there is increasing reliance on electronic navigation systems. It is now common for operational technology and information technology to be linked together via onboard networks and certain systems are now connected to the internet. When devices are networked and connect to the Internet, hackers are given the opportunity to attack.

The cyberattack that prompted the latest warning occurred in February 2019. A ship bound for the Port of New York started experiencing severe disruption to its shipboard network. Vessel control systems were not affected, although the functionality of the network was severely degraded. The U.S. Coast Guard led a forensic investigation which revealed malware had been installed on the network.

The ship was known to be vulnerable to attack so the crew did not typically use the network for personal matters such as email. The network was only used for business purposes, which involved contact with third parties to maintain charts, manage cargo data, and communicate with shore-side facilities. It is currently unclear how the malware was installed, but what is clear is that cybersecurity defenses were nowhere near sufficient.

The advice from the Coast Guard is to implement network segmentation to limit the harm that can be caused in the event of an attack. Network profiles should be created for each user, and the rule of least privilege should be applied. Anti-virus software should be installed, all software should be kept up to date, and care should be taken connecting any external device to a networked computer due to the risk of malware.

If hackers can gain access to the network, they can steal sensitive data, cause serious disruption to internal networks, and systems could even be rendered inoperable. An extortion attack involving ransomware, for instance, could leave shipping firms with no alternative other than to pay up.

These attacks are the latest in a string of cyberattacks on commercial vessels. In December 2018, 21 shipping associations and industry groups produced a set of guidelines on cybersecurity onboard ships to help commercial vessel operators improve security, secure their networks, and make it difficult for hackers.

The report details recent USB-based attacks, RDP-based attacks, phishing attacks, ransomware attacks, and attacks involving malware, viruses, and worms. The attacks have caused major delays to shipping firms, financial losses, and in some cases have jeopardized safety.

Just as captains must make sure that access to the engine room is restricted, the same should be the case for computer systems. If systems are not secured, cyberattacks are inevitable.

TitanHQ can help shipping firms protect against email and web-based attacks and block the two main vectors that are used to attack commercial vessels.

Contact the team today to ask about SpamTitan and WebTitan: TitanHQ’s award winning antispam and DNS filtering solutions.