The FBI is warning Arizona businesses of a sophisticated scam designed to trick them into wiring tens of thousands of dollars to a fake business partner.
Mark Cwynar, assistant special agent in charge at the FBI’s Phoenix office, said the scammers monitor social media posts, hack into email systems and set-up websites that are designed to resemble the targeted company, usually off by a single letter in the Web address.
Then, posing as the chief executive officer or the chief financial officer, they direct accountants or financial staff to immediately wire money to a new, unheard-of business partner.
“It is a very plain-vanilla, innocuous email, but it is highly successful,” Cwynar said.
Scammers attempt to match the tone and language of the person they are pretending to be.
People are also reading…
“They send the same language that the CEO would use,” he said.
The FBI says the number of reported cases has nearly tripled in the last year.
“Year over year, we saw a 270 percent increase in cyber crimes,” Cwynar said.
The average take is $133,000, he said, although the figure for Arizona businesses is closer to $50,000 to $75,000 per incident.
He urged companies who have been tricked to immediately call bank officials and the FBI, saying time is vital to reversing charges.
It is virtually impossible to get the money back after a few days, he said.
FBI Special Agent Paul Schaaf said companies should have complex procedures in place for wire transfers, saying verifying by email in this scam wouldn’t work.
He suggests staffers should call the person authorizing the wire transfer or requiring two executives to sign off on any similar request.
Going a step further, Schaaf suggested code words that are changed on a daily basis.
For more tips on business email compromises or to report an incident, go to http://www.ic3.gov
