Building Shields Against Email Fraud: Strategies for Businesses

Cybercrime is a menace that small businesses cannot ignore. It has been growing quickly, and according to the latest data, 60% of medium-sized businesses in the country have been impacted by hacking attacks. The average cost of attacks on medium businesses in 2022-23 was $97,200, and for small businesses was $46,000. With more and more small and mid-sized businesses becoming data-driven, safeguarding confidential information has become a challenge. Email fraud is growing rapidly among the various types of data theft used by hackers.

This attack makes the employees reveal sensitive information or transfer funds to fraudsters. Email frauds are also known as phishing attacks and are carried out through spam emails with links that get accidentally clicked by receivers. However, hackers have refined their attacking methods over the years and now use business email compromise to make the accounting department pay for fraudulent invoices. It is made possible with the help of social engineering that convinces the victim of the authenticity of the emails. Here is how businesses can build shields against email fraud by devising smart strategies. These are crucial in the current scenario of rising digital vulnerabilities.

1. Become Aware and Identify Cyber Threats

Business email compromise is hard to detect because it appears to have come from a legitimate source known to the receiver. Hackers even use company logos and similar email IDs to deceive the victims and make them divulge important credentials or bank account details. Revealing such classified information can lead to significant financial loss to the business.

Thus, if you are a budding entrepreneur looking for a business for sale Brisbane, you must educate yourself about phishing and other cyber threats. It is vital to carefully check the email ID and the sender’s domain name. If it appears suspicious, the receiver must return the email to the sender for confirmation. The receiver can also call the known person to confirm it, even if it appears urgent and requires immediate action.

2. Use Email Authentication Procedures

One of the easiest ways to restrict spoofing attacks (where cybercriminals use the logo and other details of a known vendor or customer to deceive the business) is to set up email authentication protocols on the business domain. The business must have an SPF record that creates a list of all the IP addresses that can send emails from your business domain and restricts others.

In addition, every small entrepreneur needs to implement DomainKeys Identified Mail (DKIM), which prevents attackers from impersonating the business domain and identifies tampered emails. They must also adopt Domain-based Message Authentication, Reporting, and Conformance (DMARC), which helps them take action against emails that are identified as spoofs or frauds.

3. Implement Cyber Security System At the Workplace

Cyber security is a necessity for every business, and entrepreneurs who purchase a Brisbane business for sale must implement it immediately. The business should have a team of experts who can safeguard it from email fraud. This includes installing security software and keeping it updated. These help build a shield against hackers through cyber security best practices like antivirus, firewalls and spam filters.

Data must be regularly backed up and stored in a secure server away from the office in case of loss. The entire workplace must use strong passwords and multi-factor authentication must be implemented for logging into business accounts.

4. Train Employees in Email Fraud Protection

Employees must be informed about email fraud and trained in security protocols to prevent attacks in the age of AI. They must be taught to identify threats and fraudulent emails and should not click on links or download attachments without verifying the sender. If the employees have to make payments online, they must get approval if the invoice has a higher amount or changed account details.

Workers must be wary of emails that request a large amount of money immediately or ask for login credentials. They must inspect the emails carefully to prevent being duped by hackers and report anything that appears suspicious. Entrepreneurs can also test their vigilance by sending phishing test emails.

5. Monitor the Network and Increase Security

Cybercriminals use highly sophisticated techniques to attack businesses and are constantly evolving. It is vital for entrepreneurs to keep track of the latest developments in cyber crime to upgrade their in-house security systems and inform the workforce about new hacking methodologies. It ensures the business and its employees are ready to handle all types of threats and thwart attacks that can lead to dangerous consequences.

If you are looking for a business for sale in Brisbane, you must find an organisation with an established security system. The existing system must be evaluated regularly to check its potency. Running security audits helps identify weak areas and strengthen them.

6. Prepare A Data Crisis Management Plan

Contingency planning is a part of running a business. Entrepreneurs should prepare a crisis management strategy to shield the venture in case of email fraud. If a business email compromise is detected, the victim’s account must be disabled immediately and ongoing sessions must be forcefully terminated to prevent the hacker from gaining access.

The victim must be enquired about the content of the email and its suspicious nature. It can help to detect other fraud emails sent to the business. However, they should not be made a scapegoat and embarrassed in front of the staff. The next step is to change the password of the account, and the attack must be reported to the Australian Cyber Security Centre.

7. Create Strict Payment Protocols

Many employees in the accounts department are authorised to make payments and unprepared for cyber attacks. They can easily become victims of business email compromise. Thus, entrepreneurs who acquire a business for sale Brisbane must ensure they set up strict payment protocols. They must open emails with caution even if they seem genuine.

They should use a browser isolation service that separates browser content from local devices to safeguard the business against fraudulent scripts and downloads. They should also have access to a secure web gateway to avoid sharing confidential data with hackers. All payments must require second-level approval for validation.

Wrapping Up

Email fraud is rising and should be taken seriously to prevent financial distress and the maligning of brand image. Entrepreneurs must follow the strategies mentioned above to build shields against this attack, which can prove detrimental to business growth.