The phenomenon of so-called “CEO fraud,” a sophisticated e-mail scam, in which the attacker spoofs a message from the company management to delude someone at the company into wiring funds to the fraudsters, has hit the German MDAX company Leoni AG last months with a loss of around 40 Million Euro.
Unlike traditional phishing scams, spoofed emails used in „CEO fraud“ schemes are usually based on a more or less sophisticated „social engineering“ by organized criminals, which enables them to understand the companies internal relationship, activities, interests as well as travel and purchasing plans.
It is worth to note, that Leonie AG stated that „The criminal activities have not affected the IT infrastructure or data security.“ of the company, which means, that the criminal activities against the company was solely based on a sophisticated profiling and not on a hardware intensive cyberattack against the IT-infrastructure of the company.
Such profiling cannot be encountered by expensive technical solutions, as it targets the human factor in the companies organization and can only be faced by a holistic sensitization of the management staff and constant surveillance of financial processes in the framework of a comprehensive company policy referring the non-disclosure of company information.
Similar cases like the Austrian FACC Operations GmbH (around 50 million Euro loss) or US-based Mattel Corp. (around 3 Million US-Dollar, which has been returned by fortunate coincidence) this year underlined this requirement, as no sophisticated software attack against company network was needed to initiated the car flow.
For more information about the issue please click on the links below:
Hauptniederlassung Sittensen / Deutschland
27419 Sittensen / Deutschland / Europa
Tel.: +49 42825940798
Zweigniederlassung Hamburg / Deutschland
20095 Hamburg / Deutschland / Europa
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3001 N. Rocky Point Drive, East / 2nd Floor
Tampa / Florida 33607
Vereinigte Staaten von Amerika
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Regus Muscat Qurum, 2nd Floor / Tamina Building
Al Nahdha Road Wattayah / Maskat
Sultanat von Oman / Mittlerer Osten
Tel: +968 24667782
Repräsentanz Singapur / Singapur
3 Temasek Avenue
Centennial Tower / Level 21 / 039190 Singapore
Republik Singapore / Asien
Tel: +65 65497209
Repräsentanz Malé / Malediven
H. Jazeera Building / 7. Floor / Boduthakurufaanu Magu
Malé 20077 / Republik der Maldiven / Asien
Tel: +960 7949655