Ransomware May Lead to Wire Transfer Fraud Business

  • Jan 27, 2015

KnowBe4 issued a warning about a new scam using ransomware to target high level business executives. The threat is being called a “Business E-Mail Compromise” (BEC) by the FBI and leads to a version of a man-in-the-middle scam that targets a company’s CEO, CTO, CFO, and/or Controller. The C-level exec receives a business email from an existing, well-known vendor requesting a wire transfer to a specific bank account. The email looks legit, comes from a known, trusted business associate and is about a recent delivery or transaction.

Stu Sjouwerman, KnowBe4’s CEO said, “This attack is particularly insidious. By the time the request comes in, the bad guys have already penetrated your network and have been monitoring and studying what went on for considerable time. They can accurately identify the individuals and protocols to perform wire transfers within your specific business environment.”

In the last 14 months there have been 1198 victims within the U.S resulting in a loss of $180 million dollars. The wire transfers get rapidly forwarded and usually wind up at banks in Hong Kong. The Internet Crime Complaint Center (IC3) cited China and Hong Kong as the most commonly reported ending destination for the fraudulent transfers.

The IC3 alert said, "Victims may also first receive phishing e-mails requesting additional details of the business or individual being targeted (name, travel dates, etc.) Some victims reported being a victim of various scareware or ransomware cyber intrusions, immediately preceding a BEC scam request."

Sjouwerman suggests IT managers take the following precautionary steps:

  1. “Alert your execs. These scams are getting more sophisticated by the month, so be on the lookout.
  2. Grab this free Social Engineering Red Flags PDF, print and laminate it, and give it to your C-level execs.
  3. Read the IC3 Alert in full, and apply their ‘Suggestions for Protection.’
  4. Step employees through an effective program to prevent social engineering attacks like this from getting through. “

Featured

  • The Evolution of IP Camera Intelligence

    As the 30th anniversary of the IP camera approaches in 2026, it is worth reflecting on how far we have come. The first network camera, launched in 1996, delivered one frame every 17 seconds—not impressive by today’s standards, but groundbreaking at the time. It did something that no analog system could: transmit video over a standard IP network. Read Now

  • From Surveillance to Intelligence

    Years ago, it would have been significantly more expensive to run an analytic like that — requiring a custom-built solution with burdensome infrastructure demands — but modern edge devices have made it accessible to everyone. It also saves time, which is a critical factor if a missing child is involved. Video compression technology has played a critical role as well. Over the years, significant advancements have been made in video coding standards — including H.263, MPEG formats, and H.264—alongside compression optimization technologies developed by IP video manufacturers to improve efficiency without sacrificing quality. The open-source AV1 codec developed by the Alliance for Open Media—a consortium including Google, Netflix, Microsoft, Amazon and others — is already the preferred decoder for cloud-based applications, and is quickly becoming the standard for video compression of all types. Read Now

  • Cost: Reactive vs. Proactive Security

    Security breaches often happen despite the availability of tools to prevent them. To combat this problem, the industry is shifting from reactive correction to proactive protection. This article will examine why so many security leaders have realized they must “lead before the breach” – not after. Read Now

  • Achieving Clear Audio

    In today’s ever-changing world of security and risk management, effective communication via an intercom and door entry communication system is a critical communication tool to keep a facility’s staff, visitors and vendors safe. Read Now

  • Beyond Apps: Access Control for Today’s Residents

    The modern resident lives in an app-saturated world. From banking to grocery delivery, fitness tracking to ridesharing, nearly every service demands another download. But when it comes to accessing the place you live, most people do not want to clutter their phone with yet another app, especially if its only purpose is to open a door. Read Now

Most   Popular

New Products

  • HD2055 Modular Barricade

    Delta Scientific’s electric HD2055 modular shallow foundation barricade is tested to ASTM M50/P1 with negative penetration from the vehicle upon impact. With a shallow foundation of only 24 inches, the HD2055 can be installed without worrying about buried power lines and other below grade obstructions. The modular make-up of the barrier also allows you to cover wider roadways by adding additional modules to the system. The HD2055 boasts an Emergency Fast Operation of 1.5 seconds giving the guard ample time to deploy under a high threat situation.

  • ResponderLink

    ResponderLink

    Shooter Detection Systems (SDS), an Alarm.com company and a global leader in gunshot detection solutions, has introduced ResponderLink, a groundbreaking new 911 notification service for gunshot events. ResponderLink completes the circle from detection to 911 notification to first responder awareness, giving law enforcement enhanced situational intelligence they urgently need to save lives. Integrating SDS’s proven gunshot detection system with Noonlight’s SendPolice platform, ResponderLink is the first solution to automatically deliver real-time gunshot detection data to 911 call centers and first responders. When shots are detected, the 911 dispatching center, also known as the Public Safety Answering Point or PSAP, is contacted based on the gunfire location, enabling faster initiation of life-saving emergency protocols.

  • Compact IP Video Intercom

    Viking’s X-205 Series of intercoms provide HD IP video and two-way voice communication - all wrapped up in an attractive compact chassis.