Protecting Your Business from Financial Fraud in the Wake of the Silicon Valley Bank and Signature Bank Events
Recent events involving the collapse of both Silicon Valley Bank (SVB) and Signature Bank have raised concerns about a potential increase in financial fraud attempts, particularly those using impersonation tactics. Thousands of software and IT service providers who used these banks are currently in the process of switching their online payment options away from both SVB and Signature Bank, and as part of that process will be notifying their customers (potentially you) to update their ACH payment information. Malicious actors are going to take advantage of this opportunity, so it’s important that you’re prepared.
Around 40% of phishing emails are impersonation attempts, where the malicious actor poses as a familiar source, such as a vendor. With the heightened anxiety in the financial markets following these events, it's crucial your business to stay vigilant.
Proactive Steps to Prevent Financial Fraud Attacks
To safeguard your business against these attacks, we recommend using a confirmation method that doesn't rely on email. Here are some steps to ensure the authenticity of any requests to change billing details:
Call the Vendor to Confirm: Use the vendor's phone number found online or in your records to verify the origin of the email. Do not trust phone numbers included in the email itself, as they could be fraudulent.
Verify Vendor-Specific Information: Request details that only the actual vendor would know, such as the exact amount and date of the last payment. This helps confirm the legitimacy of the request.
Triple Check the Source Email Address: Check that the email address making the request matches the vendor's previous emails. Visually inspecting the address may not be enough, as subtle spelling changes can be difficult to spot (e.g., "audible.com" vs. "audlble.com"). An email search can help identify fraudulent addresses that may appear legitimate.
Delay Making Changes Until Payment is Due: Postponing any account changes until they are absolutely necessary can help prevent financial losses, as fraudulent accounts are likely to be closed over time.
We at EON are committed to supporting your business in maintaining strong cybersecurity practices. With the potential impact of cyber attacks on your operations, we urge you to remain vigilant and take the necessary precautions to protect your business from potential threats. Please do not hesitate to reach out if you have any concerns or need assistance in better securing your network.