How $43,000 Got Stolen From A Small Business In The Blink Of An Eye

$43,000 Gone In The Blink Of An Eye

Picture a regular Friday night after a strenuous work week, only to discover an alarming message from your bank on your phone. Opening it reveals an unexpected payment of $43,000 to an unfamiliar company. This nightmare turned reality recently for a small business owner, and regrettably, there’s no recourse to recover the lost funds. Thankfully, for this company, $43,000 was a loss they could absorb, but it was still a huge hit and, frankly, they are lucky they weren’t taken for more.

Here’s what happened and how you can keep this from happening to you.

The E-mail That Started It All

Imagine receiving an e-mail so convincing, so utterly devoid of red flags, that you find yourself compelled to act. This isn’t a failure of judgment; it’s a testament to the sophistication of modern cyberthreats. An employee in the accounting department received a seemingly routine email from the “CEO,” indicating the initiation of collaboration with a new company, necessitating an urgent setup in the system and an immediate payment. The urgency and amount weren’t unusual, given the company’s regular financial transactions. The employee, thinking they were complying with the CEO’s instructions, unknowingly facilitated the cybercriminals by setting up the company in the system and making the payment. The money disappeared the moment the “Send” button was pressed.

So What Happened?

While the exact sequence of events leading to the breach remains unclear, it’s plausible that an employee, possibly even the owner, fell victim to a phishing email weeks or months earlier, allowing the cybercriminal access to the company’s systems. The phishing email likely contained a seemingly normal link that, when clicked, initiated the compromise. Over subsequent weeks, the cybercriminals infiltrated company communications, identified key players, and orchestrated a plan to exploit the CEO’s authority for an urgent payment.

While this scenario may sound far-fetched, it’s not new.

If you remember seeing the classic movie Home Alone, would-be thieves watched houses immediately preceding Christmas to determine which families would be away for the holidays so they could break into those homes. Cybercriminals do the same thing, but from a distance, and you’d never know they were ever there.

Your system could be compromised without your knowledge until an attack occurs. This targeted cyberattack is commonly referred to as spear phishing, where criminals pinpoint a vulnerable point or person in an organization and engineer a scheme tailored to exploit them.

What You And Your Employees Need To Know To Help Thwart Attacks

There’s no foolproof defense against cybercriminals, but like home burglars, they target the path of least resistance. Employing layers of protection for your company, coupled with employee education, is crucial.

3 Things To Do Right Now To Protect Your Company

1. 1. Multi-Factor Authentication (MFA): Implement MFA, a shield against cyber threats. MFA, or 2FA, adds an extra layer of security by requiring a code sent to your phone before granting access.

1. 1. Employee Education: Your employees are the first line of defense. Educate them about common scams, how to avoid them, and what steps to take if they suspect they’ve clicked on a malicious link. Regular training programs can be implemented to reinforce their awareness.

1. 1. Cyber Security Services: Beyond firewalls and antivirus software, consult qualified cybersecurity experts to develop a comprehensive security plan tailored to your company’s needs. We offer a variety of security services for companies and can certainly talk to you about options that make sense for your situation.

Whatever You Do, Don’t Do This!!!

Maybe the worst thing the owner of the company that lost $43,000 did was they then posted a video and story on social media. While their intentions were good because they wanted to warn other business owners not to fall victim to the same scam, they might as well have had T-shirts made with a big target on the back.

It’d be like having cash from your house taken, then going online and telling people exactly how it happened – you’re just inviting more people to come try to take your cash.

Are You Secure? Get a Cyber Security Risk Assessment

To ensure your company’s security, schedule a FREE Cyber Security Risk Assessment. We will review your system to identify vulnerabilities and fortify your defense against potential attacks. Contact us at 717-914-0102 or click here.

Guarding your business against cyber threats is an ongoing process, and staying vigilant is the key to avoiding devastating financial losses.