02 Mar Corporate Account Takeover
Protect Your Business from Corporate Account Takeover
Imagine logging into your business account one morning to discover that substantial sums have been transferred to unknown accounts, possibly overseas. What was supposed to be a normal day in the office has turned into an all-out panic where there are no answers and very few, if any, leads to figuring out how this fraud took place and why your account details were vulnerable. Unfortunately, this scenario is becoming increasingly common as cybercriminals develop more sophisticated methods to target businesses on top of BEC attacks and many more. At Sunwest Bank, we understand the gravity of these threats and are committed to helping you safeguard your financial assets against data theft and corporate account takeover attacks.
CATO is a growing cyber threat specifically targeting businesses. Deceptive criminals employ increasingly sophisticated techniques to steal login credentials to legitimate user accounts, wreaking havoc on your finances and jeopardizing sensitive data. Let’s explore what corporate account takeover (CATO) is, how it’s evolving, and what you can do to mitigate the risks.
What is Corporate Account Takeover?
A corporate account takeover is a cybercrime where individuals gain unauthorized access to a business’s finances and user accounts, enabling them to execute illicit transactions. These transactions may include transferring funds from the company, adding fictitious employees to the payroll, siphoning off sensitive customer data, or stealing employees’ or clients’ identities. At Sunwest Bank, we’ve seen firsthand how devastating an account takeover attack can be, with losses ranging from thousands to millions of dollars and countless online accounts being compromised. However, we believe these risks can be effectively managed with the proper measures.
The Unique Risks Facing Business Accounts
Unlike consumer accounts, which typically benefit from Regulation E’s limitations on unauthorized electronic fund transfers, business accounts offer less protection. This discrepancy leaves business accounts more vulnerable to phishing attacks and account takeovers. For example, consider the case of Patco Construction Company, which fell victim to a corporate account takeover. Their computers were compromised by malware or malicious software, allowing cybercriminals to initiate six wire transfers totaling more than $588,000. Despite recovering some funds, the company faced a protracted legal battle with its bank, highlighting the high stakes in such breaches. At Sunwest Bank, we aim to prevent these scenarios by offering advanced security solutions tailored to protect your business accounts.
Sunwest Bank’s Approach to Combating Corporate Account Takeover
Sunwest Bank takes a proactive stance against corporate account takeover. We adhere to the Federal Financial Institutions Examination Council (FFIEC) guidelines, which advocate for a layered security approach. This strategy includes regular risk assessments and comprehensive customer security education. Our goal is not only to comply with these guidelines but exceed them, ensuring that our clients, whether they have one or multiple accounts, are well-protected against evolving threats.
Layered Prevention Strategies
Our approach includes multi-factor authentication (MFA), which adds an extra layer of security to your online accounts. By requiring more than just a password, MFA helps ensure that even if your login credentials are compromised, unauthorized users can be prevented from gaining access to your bank account. Additionally, we offer services like Positive Pay, which enables us to verify checks and ACH transactions presented for payment against those you’ve issued, reducing the risk of fraud.
Regular Risk Assessments
We conduct regular risk assessments to identify vulnerabilities within our systems to keep up with the ever-evolving landscape of cyber threats and fraud. By staying ahead of these threats, we can adapt our security measures to robustly protect your business, whether small or large.
Customer Education and Awareness
We believe that an informed client is a protected client. Sunwest Bank offers regular training sessions and resources to help you, and your employees recognize and respond to potential threats. Your team acting as a second line of defense can be instrumental in preventing issues and minimizing the impact of fraud if it does occur.
Password Complexity
One of the easiest forms of education for any account holder is making them aware of the importance of a strong password policy. While it seems simple, it is one of the simplest yet effective lines of defense for businesses and other account holders trying to prevent identity theft or corporate account takeovers. Criminals often use bots or machines that can guess thousands of password combinations at a time to steal data, but if your passwords are strong, it is much more complicated, arguably impossible, for them to gain access, and they will look for another victim.
Shared Responsibility: Protecting Your Business Together
In the modern digital landscape, security is a shared responsibility between your financial institution and your business. While Sunwest Bank is committed to protecting your online banking environment, we also encourage our clients to take proactive steps to safeguard their systems. This partnership is the most effective way to prevent corporate account takeover.
How to Protect Yourself and Your Business
Protecting your business from corporate account takeover starts with a solid security plan. Here are some steps you can take in collaboration with Sunwest Bank:
- Develop a Security Plan
Assess your business’s risk profile and establish a security plan incorporating best practices. This plan should be regularly updated to address new threats as they emerge or new system vulnerabilities are identified.
- Secure Your Online Environment
Treat your cyber environment with the same care as your physical assets. Use up-to-date, reliable antivirus software, encrypt sensitive data, and implement complex passwords that are changed regularly.
- Establish a Secure Financial Environment
We recommend dedicating a single computer exclusively for online banking. This machine should not be connected to your business network, have email capabilities, or be used for any other purpose. This isolation minimizes the risk of malware infections that could lead to a corporate account takeover or identity theft of employees.
- Leverage Sunwest Bank’s Security Services
Talk to your Sunwest Bank representative about services like Positive Pay, device authentication, and multi-person approval processes. These tools add additional layers of security, helping to prevent unauthorized transactions.
- Monitor and React Quickly to Suspicious Activity
Vigilance is key to protecting your accounts. Regularly monitor your accounts for unexplained activity, unusual pop-ups, or suspicious emails. If you detect anything unusual, contact Sunwest Bank immediately, cease all online activity, and isolate compromised systems.
- Understand Your Responsibilities and Liabilities
Familiarize yourself with the terms of your account agreement with Sunwest Bank, which outlines the security measures you must implement. Failure to comply with these measures could result in liability for any losses incurred due to an account takeover. If you have questions, our team is here to help you navigate these requirements.
- Educate Your Employees
Even if they don’t handle financial transactions, every employee can be a potential entry point for cybercriminals. Educate your staff about the risks of corporate account takeover and ensure they understand the importance of following security protocols.
Staying Informed: Your Best Defense Against Corporate Account Takeover
The nature of cyber threats is constantly evolving, making it crucial to stay informed about the latest developments in cybersecurity. Sunwest Bank is committed to keeping our clients up to date with the latest information and best practices to protect against corporate account takeover. Regular updates from our cybersecurity experts and ongoing education initiatives ensure you know how to protect your business.
Corporate account takeover attacks are a severe threat that requires a proactive and informed approach. By partnering with Sunwest Bank, you can access industry-leading security measures, expert advice, and a dedicated team that protects your financial interests. Together, we can ensure that your business remains secure in the face of cyber threats.