Types Of Businesses Being Targeted
Normally small businesses with between 1 and 8 employees are being targeted.
This is mostly because hackers know that small businesses of that particular size don’t pay enough attention or have enough training or invest enough into IT security for one reason or another.
Larger businesses tend to have IT policies in place which tend to catch the fraudster before any money is transferred.
An Example Of Invoice Redirect Fraud
- Business A goes out to Business B and does some work for them
- Business A returns to their own office after the work is completed and sends Business B an invoice for the work done
- Business B receives the invoice and pays the invoice
- Business A doesn’t receive the money and calls up Business B to ask why they haven’t sent payment
- Business B shows Business A the payment details
Both businesses realise they’ve been scammed when they find out that the account number on the payment details isn’t right.
Sometimes this is put down to an administrative error, but as soon as the banks are involved, they find out that the money has been redirected to another account.
Somewhere in between, a hacker / fraudster has gained access to the invoice, modified it and sent it on again with different payment details to Business B. Business B has then unknowingly paid the money into the fraudsters bank account.
How Do The Fraudsters Do It?
There’s loads and loads of free and easy to find information out on the internet that will teach you exactly how to commit invoice fraud.
It’s also quite a lot easier when the potential victim has left their doors wide open.
How To Protect Your Business
The number one reason for invoice redirect fraud is not having your IT equipment kept up to date on a regular basis by a professional. Just installing Windows automatic updates doesn’t cut it.
Your staff members should also have basic Cyber Security Training.
Just the same way you can’t stop a burglar from breaking into your house, it’s the same with Cyber Crime, but you should at least give your business a fighting chance.
With Carson IT looking after your network, computers and customer data, your business will be able to mitigate any sort of cyber attack and not just invoice redirect fraud.
Contact us to find out more about our low cost Managed IT Solutions, tailored specifically to protect small local businesses from fraudsters and hackers.