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
Lindenstr. 11, 27419 Sittensen / Germany / Europe
P.O. Box 1417, 27416 Sittensen / Germany / Europe
Phone.: +49 4282 59 40 798
Branch Office Hamburg / Germany
Georgsplatz 1, 4. Floor
20099 Hamburg, Germany, Europe
Harbour City Operations Office
Überseeallee 1, 2. Floor, 20457 Hamburg
Phone.: +49 40 879 79 85 0
Representative Office Florida / USA
66 West Flagger Street, Suite 900, Downtown Miami
Miami / Florida 33130
United States of America
Tel.: +1 786 7430733
Representative Office Muscat / Oman
Tamina Building, 02nd Floor
Al Nahdha Road, Wattaya, P.O. Box 395
PC 118 Muskat / Sultanate of Oman / Middle East
Phone: +968 2466 7782
Representative Office Singapur / Singapur
3 Temasek Avenue
Centennial Tower / Level 21 / 039190 Singapore
Republik Singapore / Asia
Tel: +65 65 49 72 09
Representative Office Vilnius / Lithuania
Vilnius, Lithuania, LT-01103
Phone: +370 520 78892