Guide to Types of Internet Fraud for Businesses

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Protecting your business from liability and fraud takes more diligence than ever before. Businesses need firewalls and virus protection. They need liability insurance and a good plan in place. It can be exhausting to keep up with all the needs your business has when it comes to protecting it from internet fraud. There are email scams and phishing attempts.

You have to watch out for spoofed sites and social media profiles. Cybercriminals are constantly evolving their techniques in order to steal your money and personal information. While it’s impossible to protect yourself completely against internet fraud, you can stay aware of how this type of crime works so that you can better protect your business from falling victim to these schemes.

Business Email Compromise (BEC)

Business Email Compromise, BEC, is a form of fraud where an attacker tricks a company into sending money to an account under its control. Attackers will often impersonate the CEO or another executive and send phishing emails to employees with instructions on how they should wire money to a fraudulent account. They can also create fake websites that look like real ones, then trick people into logging in with their credentials. These emails are tricky to spot, so it’s important to educate your staff on what to do when they see these messages.

Phishing

Internet phishing is the act of sending emails that appear to come from a legitimate business in order to trick people into giving up sensitive information. You can recognize a phishing email by looking for some common signs. If the email uses misspelled words or incorrect grammar, it might be a phishing email. If the sender’s address is not correct and doesn’t look like it’s from your bank or credit card company, it could also be a phishing email.

Vishing

Similar to phishing, vishing is another form of fraud, although instead of using the internet or emails, it is the use of technology to conduct fraud over the telephone. It is a type of social engineering where the perpetrator uses technology to impersonate someone in authority, such as a bank representative or law enforcement official.

Vishing scams are similar in nature to other types of phishing scams because they all involve tricking individuals into giving out sensitive personal information such as bank account and credit card numbers, Social Security numbers, and passwords.

Pharming

Pharming is a form of fraud that uses the DNS to redirect traffic from a legitimate website to a fraudulent one. The result is that you visit your bank’s website but you’re actually on a fake version of the bank’s site where someone can steal your passwords, credit card information, or other personal information.

Account Takeovers

Account takeovers occur when an unauthorized party gains access to a legitimate user’s email account and uses that access to transfer money or make changes to accounts. This is usually done through phishing campaigns, which trick users into providing their login credentials on a fake website, or through malware and viruses that can infect computers and phones.

These account takeovers have serious consequences for businesses because they can lead to fraudulently obtained credit cards being used for purchases or identity theft. In addition, compromised accounts may be used for fraudulent transactions with other companies without knowing it—potentially causing significant financial loss.

Card Skimming

Card skimming is a form of fraud that involves the use of credit card readers to steal card information. The device is made to look like an ordinary payment terminal, but it actually contains a small camera that records users’ keystrokes or captures images of their cards when they are swiped. This data is then stored on the machine’s memory and downloaded to a remote computer through an internet access or telephone line.

Card Not Present

Card-not-present (CNP) fraud occurs when a payment is made without the physical presence of any bank card—for example, by phone or online purchase. This type of fraud has been increasing in recent years due to the increased use of devices such as smartphones and tablets at home and abroad.

Conclusion

Internet fraud is a growing threat for businesses of all sizes, but it’s one that can be managed with the right tools and strategies. By understanding the types of scams most likely to target your business, you can better prepare yourself to avoid becoming a victim. You need a strategy to educate staff, create barriers, and mitigate threats.

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