The Nova Scotia RCMP is alerting business owners on how to recognize and avoid targeted email scams, also known as spear phishing.
Spear phishing is one of the most common types of frauds targeting businesses. Nova Scotians lost over $354,000 last year, while Canada-wide, over $58 million dollars was lost – the second biggest scam by dollar value in the country.
Phishing is the act of sending a communication, often an email, that appears to be legitimate, but is actually fraudulent. A spear phishing scam is a targeted attack on an individual, group or company. Fraudsters will gain access to your email and analyze your style of writing, your contacts, and any recurring payments or important dates. The scammer will then use this information to impersonate you, and email potential victims, manipulating them into paying fake bills, sending gift cards or changing direct deposit information.
These scams can take many forms; an executive requesting urgent payment to close a deal, duplicate invoices with updated payment details, or requesting the payroll department to update their bank account information. Businesses are then tricked into believing the source of the request is real, and send money or goods directly to the fraudsters.
Protect your business by educating employees about this type of scam and having detailed payment procedures. Businesses are encouraged to limit the number of employees who can purchase items or pay bills, and pay close attention to unusual requests.
Employees should be wary of unsolicited emails that include a suspicious email address, unusual payment procedures, a sense of urgency, or direct contact from senior executives you do not normally interact with.
If you, or someone you know, is a victim of this scam or any other type of fraud, report it to your local police and the Canadian Anti-Fraud Centre. For more information visit: https://antifraudcentre-centreantifraude.ca/index-eng.htm