Page 31 - Insurance Times Janaury 2021

flags that signal a potential phishing attempt go and windows, a security camera, and not much else
unnoticed. while they figured out whether and where to move
their product. In the meantime, these properties
So, when a scammer posing as a vendor emails new bank
account information and asks that all future payments became low-hanging fruit for opportunistic thieves.
be routed there instead, the recipient is more likely to Burglary of vacant commercial properties has risen
miss the discrepancies in the sender's email address, mostly in metropolitan areas. Both San Francisco and
format and style, and less likely to verify its legitimacy. New York City reported a 42% increase in burglaries
between January and June of 2020 compared to the
Unfortunately, the mistake is typically not discovered until
the true vendor reaches out to ask why it hasn't been paid. same period in 2019. Philadelphia reported a 134%
increase over the same period. In Seattle, some
2. Unauthorized transfers and route changes commercial districts saw 30% to 40% more burglaries
perpetrated via computer fraud in March and April compared to last year.
Internet-savvy thieves have also taken advantage of Because lockdown mandates were passed so quickly, most
relaxed risk management practices to find openings for business owners didn't have a chance to arrange stronger
infiltration. By hacking into a company's internal protection for their location, whether that meant installing
networks, perpetrators can initiate fraudulent transfers an alarm system or contracting a security service. And
themselves without having to fool an employee with a because no one was certain how long the stay-at-home
convincing email, or redirect entire shipments of goods orders would last, many also wondered whether such
directly into their waiting hands. measures would be worth the cost.
The Austin Business Journal reported that some hackers
have used stolen consumer information to break into online How to reduce your risk
shoppers' accounts and reroute grocery delivers to their While theft might be growing more prevalent during the
own homes. Retailers and distributors are susceptible to pandemic, it is not a new risk. Minimizing your exposure is
the same type of theft, but on a larger scale. all about going back to basics.
With the holiday season approaching, expect this type
of theft to become more prominent as more goods Reiterate internal fraud prevention
make their way around the country. With a larger controls
number of deliveries in progress, hackers may have an
easier time rerouting shipment without detection. Any employee receiving wire transfer or change of account
information requests via email should call back the sender
This exposure has also been exacerbated by the rapid directly to verify the request -- using the contact information
shift to remote work. Companies lacking secure on file, not what's provided in the email.
platforms and VPN networks make easy targets for
hackers, especially if workers are relying on their It's a quick and easy way to weed out fraud that could stop
personal devices and home wi-fi networks. social engineering in its tracks if every employee stuck to
Some scammers have even tapped into the fear and protocol. In the midst of these stressful times, though,
anxiety associated with this unanticipated move by employers may need to send additional reminders and
posing as expert cyber security consultants, pitching continually reinforce the importance of this practice to
software that secures work-from-home environments… combat the effects of fatigue.
but is of course embedded with bugs and backdoors.
Strengthen cyber security defenses to
Once a cyber thief gains access to internal systems, he
or she can quickly learn company processes and keep hackers out.
protocols well enough to manipulate them or imitate Use company VPN or VOIP systems rather than home
them, perpetuating fraudulent payments or shipping wireless networks and cloud-based communication
instructions without setting off alarms. platforms, which may not be private or secure. Require two-
factor authentication to log in to any company system. Run
3. Break-ins and burglaries of vacant properties software updates as scheduled to ensure security bugs get
When brick-and-mortar stores initially shut down in patched. Continually remind employees not to seek their
March and April, most business owners were forced to own workarounds to IT issues by downloading unapproved
leave their inventory on site, protected by locked doors software or platforms.

The Insurance Times, January 2021 31