Vigilance enables Katwijk company to see off CEO fraudsters

Big-money scam prevented by diligent worker

Concept of a hacker at work on a PC in a dark room with blue lighting

CEO fraud is a form of cybercrime where a scammer pretends to be one of an organisation's managers, executives or non-executive directors. They contact someone within the organisation or one of its business partners, and trick them into making a payment. Although CEO fraud is best known from headline-grabbing big-business scams, such as the Pathé case, the fraudsters are increasingly turning their attention to small and medium-sized enterprises. Fake domain names often play an important role in this type of crime.

Suspicious worker saves manufacturer

A Katwijk manufacturing company recently received an invoice from one of its distributors, requesting the urgent payment of €200,000. The company's Accounts team also received e-mails and phone calls from the distributor about the bill. Fortunately, one member of the team noticed that the bank account number on the invoice didn't match the one the manufacturer had used before to pay the distributor. Having become suspicious, the worker called the distributor and discovered that the payment request was a scam.

Typo-domain central to attempted fraud

Further investigation revealed that the invoice had been sent using a fake e-mail account based on a 'typo-domain'. Instead of the usual mail@distributorname.nl, the mail came from mail@distributor-name.nl. By the simple trick of using a domain name very similar to the distributor's real name, the crooks had been sending mail that looked at first sight as if it came from the distributor.

How can you avoid getting scammed?

In their article, the police team that revealed the scam gave some advice on how to avoid falling victim to a similar fraud. Their top tip was never let someone who claims to hold an important role pressurise you into departing from your established, secure payment procedure. The police also advised moving away from e-mail invoicing and going over to closed-network e-invoicing where possible.

Tackling typo-domains

Something the distributor in this case could have done is actively monitor the registration of domain names like their own. If someone else registers a domain name that includes your company name, they're probably up to no good. If your name is a registered trade name or brand name, it's often quite straightforward to get control of a lookalike domain name. Crooks aren't usually willing to fight you in court.

SIDN BrandGuard

SIDN BrandGuard promptly alerts you whenever a domain name is registered that's like your brand name. So you can take action before a crook can start an attack or abuse your brand in a lookalike scam or identity fraud. The service also lets you keep tabs on registrations made by your own organisation and its business partners, saving yourself reputational damage and high costs.