Businesses have an increasing need for Los Angeles IT services to develop data protection strategies. Every enterprise should be prepared to deal with Business Email Compromise (BEC), which cost U.S. businesses $1.7 billion in 2019, according to the FBI. Here are some of the latest scams happening to businesses.
Toy Maker Hacked
Mattel, the large toy manufacturer, lost $3 million from BEC exploitation. The hacker posed as Mattel's new CEO in an email to a finance executive, requesting a wire transfer to an entity in China. Since the company has experienced growth with its business in China, the request did not seem unusual.
The hacker had studied the company before launching an attack. But the transfer date was a bank holiday in China, which allowed Mattell to prevent the transaction.
Los Angeles IT services providers can help you prevent that kind of attack to harm your business by providing training to make employees aware of how hackers trick employees. Impersonating a company executive or a representative of a famous brand are two common schemes used via email by hackers.
Media Giant Security Breach
Another big company, Nikkea, experienced a major hack in 2019 that cost the media conglomerate $29 million. By impersonating a Nikkea vendor, the hacker was able to deceive a worker into transferring money into the hacker's account. When a hacker poses as a vendor the attack is known as a "vendor email compromise."
Many companies don't take the time to warn employees about the risks using the company network to access email and websites. One of the reasons you don't hear about too many big companies getting hacked is that hackers have shifted their targets to small businesses, which have become easier prey.
Hackers Seek W-2s
Not all hackers are out to steal money, as some look to gather information on an individual. The hacker may eventually launch an attack on the person or sell the information to another cybercriminal. Some hackers collect or copy W-2 forms because they include Social Security numbers and addresses. Cybercriminals may also use stolen W-2 forms to file fraudulent tax returns.
The FBI reports the fastest spreading type of BEC involves payroll diversion or direct deposit scams in which money transfers to a hacker's account. The hacker tricks someone in the human resources department to change an employee's account number. The result is the victim's paycheck is sent to a prepaid card account.
Working with Los Angeles IT services helps lower the risks of getting robbed by online thieves. An experienced IT team can help set security policies that block intruders. Contact us at Vitalpoints to learn more about protecting your digital assets.