Phishing scams continue to be one of the most profitable crimes for online cyber criminals. News reports of sensitive data from large corporations like Sony being compromised are increasing at a troubling rate. But contrary to popular belief, these phishing scams are just as dangerous for small business owners.
The Internet Crime Complaint Center (partners with the FBI) and the National White Collar Crime Center (NW3C) have reported more than 300,000 cases of online phishing scams and other Internet related crimes.
Understanding what phishing is will help you identify what makes your small business so appealing to cyber criminals.
What is phishing?
Phishing is a serious problem, but the term can be a bit ambiguous. It is the act of illegally trying to obtain private information such as passwords, credit card account numbers, banking account information, usernames, or social security numbers. Phishing is accomplished by creating fake logos, email addresses, authentic looking official websites, and phone numbers. Victims are then under the illusion that it is official business and are compelled to give out their private information, which in turn can be used to steal their identity. Small businesses often suffer from phishing, as the goal is to gain access to their customer’s private information such as credit card account numbers.
Examples of small business phishing scams
Thousands of small business owners have received emails from the IRS informing them that they must fill out W-4 forms or other tax forms, and return them via fax. These emails look incredibly real. Right down to the official IRS government seal. Unfortunately, many owners are afraid that they are going to be audited by the IRS if they don’t take care of it quickly.
The IRS states on it’s website at IRS.gov, that it will not initiate any contact by email and that you should never click any links on an email sent to you asking you to send anything to the IRS.
Your company email can be a target
Company emails are easy access for thieves. They can target an individual by sending him or her an email that looks authentic, however when they open it, it can release a virus or malware infecting the entire network. The thieves will then have access to employee’s private information and company data.
Phone phishing
Phone phishing refers to deceitful phone calls where thieves posture as banks and request the victim to “verify” account numbers over the phone in order to steal confidential information.
How to protect your business against phishing
APWG.org is the Anti-Phishing Work Group, and their goal is to provide wonderful advice on how to guarantee your business does not fall victim to phishing. Listed here are some of their tips:
- Make sure your employees are aware of what phishing scams are, and are cautious when reading and responding to suspicious emails. Always err on the side of caution. Instead of clicking a link, open another browser window and go to the official website.
- Never give out company financial information such as bank routing numbers to an inquiry made via email. Your bank does not need you to confirm your account information…they already have that. An email like that even if it has your bank’s logo is a fake. Make it a habit to check your accounts regularly for suspicious charges and withdrawals.
- Make sure every computer used has up-to-date virus and malware protection. Schedule regular full system scans. Never download “anti-virus” software from an unknown entity. It’s better to stick with trusted brands.
It is nearly impossible for law enforcement to stop phishing, so the best method of defense is the education of your employees for identifying, dealing with, and staying up to date with phishing scam trends.