A story of email fraud
We received an email from an existing client authorizing a payment by wire to one of their vendors and including wire instructions. The wire request was for a large amount, but not out of the ordinary for that organization ($1.4 million). The body of the emailed wire request showed a trail of emails below it, showing the conversation between our client and the vendor about a project they were working on. We recognized the other employees of our client’s business in the email conversation and we recognized the project they were working on.
As is protocol for wire payments, we called the client to confirm the wire, using the phone number that we have on file for our client. Come to find out, the client did not authorize this wire payment, knew nothing about it.
Upon investigation, we discovered that our client did not actually send that email to us. The sender’s email address was very similar to our client’s email address; the only difference was that the criminal had added one letter to the domain name. It was barely noticeable.
Furthermore, they had tapped into this business’ secure email account. They were able to determine our email account as the appropriate recipient to send wire requests. And they were able to access actual email conversations with real employee names, email addresses, and the valid project names, which they used to forward to us to add credibility to the request.
From this story, you can see the extents that criminals go to commit email fraud, also known as Business Email Compromise (BEC).
What can you do about email fraud?
Of course, having proper security in place to help prevent security breaches in the first place is important to prevent becoming a victim of email fraud. Further, having systems and procedures in place to confirm wire payments is essential, if a security breach does occur. It’s important to take a holistic approach at the situation and ensure you’re as well protected from email fraud as possible.
W’d love to offer you an accounting system review to see where there may be cracks in your accounting system that could be exposing you to potential fraud in your organization. You can schedule an appointment here.
Related Posts on Redmond Accounting CA
-
Understanding Fraud and Email Spoofing: How to Protect YourselfUnderstanding Fraud and Email Spoofing: How to Protect Yourself With more and more of our business and livelihoods moving online, fraud and email spoofing are only increasing. These malicious threats not only put your personal information in jeopardy but can also pose significant risks to business. Understanding how these scams work and learning to recognize the signs can help…
5 Ways Your Accountant Can Help You Prevent Fraud5 Ways Your Accountant Can Help You Prevent Fraud Has your business been a victim of fraud? A couple of years ago, a cloud accounting client forwarded us an email that they had just received from a Police Officer in another state. That police department was investigating a check that an individual was trying to cash that was…
-
How to Fix Inbox Overload and Tidy Up Your Email Is your email out of control? You may be suffering from INBOX OVERLOAD! No matter how much you try, does it always fill right back up? Yesterbox There is another way, it’s called Yesterbox. The concept was created by Tony Hsieh CEO of Zappos.com. His idea is that you should wait…
-
A case of check fraudA case of check fraud We will periodically post summaries of our experiences with other small businesses in an effort to share problems and solutions and learn from each other. The Problem: A growing company with 50+ employees suddenly discovered that they were the victims of check fraud. The on-staff bookkeeper had forged the principal's signature on several checks made payable to…
-
The Real Threats of Check and Email FraudThe Real Threats of Check and Email Fraud In previous blog posts we’ve covered the threats posed by fraud, stark realities that can cause significant financial damage if not handled swiftly and with the right tools. Two common forms of these threats are check fraud and email fraud, both of which can exploit vulnerabilities in business operations and technology. Check…
-
Protecting Your Finances: How to Prevent Accounting FraudProtecting Your Finances: How to Prevent Accounting Fraud Accounting fraud impacts small and large organizations, and it’s estimated that 5% of revenue is lost annually due to fraud. Businesses with less than 100 employees are at higher risk of being a victim of multiple schemes, including: Check tampering Billing schemes Fraudulent wire transfers Inventory theft Financial statement fraud Many more…
Case Study: Employee Fraud Happens. 2 Things To Avoid ItUnfortunately, employee fraud happens. One day we got a call from a business that had been referred to us. They were a growing company with 50+ employees. They needed a new accounting department. It was urgent, they said. Their employee bookkeeper had just quit the last day of the month. One of her duties was printing the checks for the…
-
What Makes Small Business Accounting Unique?Small businesses often face unique accounting challenges that differ from those of larger businesses. The differences between small business accounting and large business accounting are mainly due to the size, complexity, and regulatory requirements of the business. Small businesses have simpler accounting needs, while large businesses are more complex. Small businesses typically have fewer employees and lower revenue, while large…
-
How to Automate Your BookkeepingHow to Automate Your Bookkeeping Bookkeeping is the one task companies ask us to automate. You can find tools and software that can help you put some tasks on autopilot, but you’ll want a human to overlook things and make sure your books are all in order. You can use a combination of bookkeepers and automation to help you track…
