Key Takeaways
Impersonation scams are increasingly targeting businesses, leveraging digital channels and social engineering tactics.
Common scams include bank investigator scams, fake websites, and business email compromise.
Implementing strong verification procedures, training staff to spot these scams, and fostering a culture of caution can help protect against these scams.
It looked like a normal request from the CEO - until it wasn’t.
Impersonation scams are more sophisticated than ever, and they’re trying to catch businesses off guard. Learn how convincing these attacks can be, and how to protect your business.
Data from the Canadian Anti-Fraud Centre (CAFC) reports that in 2024, Canadians lost a total of $638 million to fraud1. Among these crimes, impersonation fraud is one of the fastest-growing types.
Imagine: an employee gets an urgent email from their “executive.” The tone is authoritative; the request is clear: act now. Without hesitation, they comply—only to discover later it was a scam. This is how Business Email Compromise and Impersonation Scams work, and it’s costing companies millions.
These scams come in various forms, leveraging digital channels and social engineering tactics to deceive and defraud. There are bank investigator scams, where fraudsters pose as bank officials, claiming suspicious activity on company accounts while pressuring employees to transfer funds to a "safe" account. Then there are fake website scams, where scammers create convincing copies of legitimate business websites to steal sensitive information. Business email compromise, phishing, vendor impersonation, payroll scams, IT support scams, invoice scams, and even social media impersonation—the list goes on and on.
The impact of these scams is profound. Financial losses can be staggering, and the damage to a company's reputation can be irreparable. The urgency and authority projected by these scammers, combined with the fast pace of modern business, create a perfect storm for deception.
But all is not lost. Businesses can help protect themselves by implementing strong verification procedures, continuous staff training, and fostering a security-first culture. Employees should understand the tactics used by scammers and be encouraged to ask questions about unusual requests. Secure communications, multi-factor authentication, and regular audits can help safeguard sensitive information and financial transactions.
Protecting Your Business
Guarding against impersonation scams requires a multi-layered approach, combining technological defenses with continuous training and strong internal processes. Here are some key strategies:
- Education and Awareness: Conduct regular cybersecurity awareness and fraud prevention training to help employees recognize scam tactics and red flags.
· Bookmark essential websites: This is particularly important for platforms that require authentication, like ScotiaConnect. It’s best not to rely solely on search engines, as fraudulent actors can promote scam sites that appear legitimate in sponsored search results.
- Verification Procedures: Implement strong verification procedures, such as confirming requests for payments or sensitive data through a separate channel.
· Remote Login: Never grant remote access to your devices or install third-party software at someone’s request.
- Secure Communications: Use advanced security measures like multi-factor authentication (MFA), filtering, and authentication protocols to secure email and communications.
- Protect Sensitive Information: Limit access to sensitive information, enforce strong passwords, and use secure platforms for confidential data.
- Monitor Financial Activity: Use dual approvals, ScotiaConnect alerts, and regular audits to detect and prevent unauthorized transactions.
- Vetting Third Parties: Thoroughly vet third parties and vendors through comprehensive onboarding and verification processes.
- Culture of Caution: Foster a culture where employees feel comfortable questioning unusual requests and reporting suspicious activities.
- Incident Response Planning: Develop and test a response strategy to ensure a quick and effective reaction to scam attempts.
Remember
By staying informed about emerging scam tactics and developing robust incident response plans, businesses can stay one step ahead of fraudsters. The battle against impersonation scams is ongoing, but with the right strategies in place, businesses can protect their assets and their reputation.