CEO fraud: cybercriminals seem to be going after smaller targets
Fewer disclosed incidents involving governments and corporates, more involving SMEs and individuals
Fewer disclosed incidents involving governments and corporates, more involving SMEs and individuals
In 2023, a number of high-profile CEO frauds grabbed attention, as cybercriminals managed to scam government entities out of hundreds of thousands of euros. One of the most notable was an incident involving the City of Alkmaar. A cybercriminal posing as a city executive managed to trick a staff member into making an urgent €236,000 funds transfer. Alkmaar was the latest disclosed addition to a growing list of local authorities defrauded by internet scammers. At the time of that incident, many people were worried about the prospects for the year ahead. And with good reason: not only did it seem that cybercriminals had acquired a taste for such scams, but they also had at their disposal an array of new AI tools to help them perpetrate much more sophisticated and large-scale heists. However, 2024 proved to be a quiet year for similar frauds in both the public and private sectors. So, should we conclude that the danger has passed?
The absence of high-profile incidents certainly isn't due to a downturn in criminal enterprise. In the middle of 2024, security consultants VIPRE reported that the total number of CEO fraud e-mails sent globally was 20 per cent up, year on year. Notably, however, more 'small' frauds were making the news. Instead of concentrating on corporates, as in the past, it seemed that cybercrooks had started targeting SMEs and private individuals as well. Particular notoriety was acquired by real estate scams, where fraudsters pose as banks or estate agents to trick people into paying them money, thinking it's a deposit on a property they want to buy.
One driver behind the shift of focus to smaller targets is probably the availability of AI tools that make it possible to tailor scams on a large scale, instead of having to prepare them individually. VIPRE reported that, by the middle of 2024, 40 per cent of all CEO-fraud e-mails were already being written with the aid of AI tooling to make them more credible. If messages don't need to be manually adapted to suit each individual target, it's much easier to go after a large number of small targets, rather than trying to scam large organisations, which are often better protected.
In the public sector, the low fraud incidence is reflected in the attitude to cybersecurity. Of 273 civil servants who took part in a survey by Ipsos in October, 76 per cent were not concerned about their organisations' cybersecurity. They were also more confident about their own understanding of cybersecurity matters than their counterparts a year earlier. However, two thirds of those questioned didn't actually know what CEO fraud was. One wonders, therefore, whether the absence of major incidents in 2024 may be promoting a false sense of security.
So, can corporates and public sector organisations look forward to relatively quiet times? Sadly not. Cybersecurity incident reports show that they remain susceptible to ransomware and supply-chain vulnerabilities. Threats of those kinds often still involve the use of typo-domains. One common trick is to use a typo-domain to make a URL look legitimate at first glance, so that an office worker visits a website where malware is smuggled onto their machine. Alertness and monitoring of the environment therefore remain vital in 2025.
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