Goodbye $11 Million

This may be starting to sound like a broken record but yet another establishment, and one that you might think would have better sense, has fallen victim to a cyber crime.

MacEwan University in Edmonton was duped by a phishing scam and was defrauded of over $11 million! And not to be harsh with the part about having better sense, just that I want to make a point about how even well educated and smart people can be tricked by fraudsters into handing over money without question.

To revisit, check out my previous posts, "Ripped Off: Social Engineering" and  "Social Engineering Yet Again", where you can get more information on how criminals use social media and technology to manipulate unsuspecting businesses and divert funds. To recap, these fraudsters used social media, university and outside contractor websites, and official looking letterheads and invoices to notify changes in banking information and redirect payments to what was the accounts of the fraudsters.
This process went on, unnoticed, until the contractor made contact with the university regarding lack of payment, at which time the deceit was discovered.

Fortunately, the accounts to which the money was deposited have been frozen until legal measures can be taken to sort it out but not all the money is there and there will be losses.

Once again, this cyber crime takes advantage of a business or establishment that does not have proper financial controls in place and improperly trained people in positions that handle money and payments, so now is the time to take steps to ensure your company establishes proper procedures to prevent a loss.