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:
Main Office Sittensen / Germany
27419 Sittensen / Germany / Europe
Phone.: +49 4282 5940798
Branch Office Hamburg / Germany
20095 Hamburg / Germany / Europe
Phone.: +49 40 87979850
Representative Office Florida / USA
3001 N. Rocky Point Drive, East / 2nd Floor
Tampa / Florida 33607
United States of America
Phone.: +1 813 3673578
Representative Office Muscat / Oman
Regus Muscat Qurum, 2nd Floor / Tamina Building
Al Nahdha Road Wattayah / Muscat
Sultanate of Oman / Middle East
Phone: +968 24667782
Representative Office Singapore / Singapore
3 Temasek Avenue / Centennial Tower
Level 21 / 039190 Singapore / Republic of Singapore / Asia
Phone.: +65 65497209
Representative Office Malé / Maldives
H. Jazeera Building / 7. Floor / Boduthakurufaanu Magu
Malé 20077 / Republic of Maldives / Asia
Phone: +960 7949655