Here at Core Bank, we know how much your business means to you. Corporate Account Takeover (CATO) is a form of financial fraud where cybercriminals gain unauthorized access to a company’s online banking or financial accounts. This type of fraud often targets small to medium-sized businesses due to their limited cybersecurity measures. Once access is obtained, criminals can perform unauthorized transactions, steal sensitive information, or disrupt business operations which is one of the worst things that can happen to a business as there can be huge financial losses and even legal issues.
How CATO Happens
- Phishing: Fraudsters send deceptive emails that trick employees into revealing login credentials.
- Malware: Malware is installed on a computer through infected attachments or websites, capturing sensitive information like keystrokes.
- Social Engineering: Criminals manipulate employees into disclosing account details over phone or email.
- Credential Harvesting: Using stolen credentials from unrelated breaches to access accounts (if businesses reuse passwords).
Key Risks
- Financial Loss: Fraudulent wire transfers or ACH payments.
- Reputational Damage: Loss of customer trust.
- Operational Disruption: Interference with regular business activities.
- Legal Liabilities: Non-compliance with financial regulations.
Preventative Measures
To prevent corporate account takeover, there are a handful of things that you and your business can do to prevent it.
- Employee Education: Train employees to recognize phishing attempts and suspicious activity.
- Multi-Factor Authentication (MFA): Add an additional layer of security beyond passwords.
- Secure Banking Practices:
- Use dedicated devices for online banking.
- Monitor accounts daily for unusual activity.
- Endpoint Security: Install antivirus and anti-malware solutions on all devices.
- Strong Password Policies: Enforce unique, complex passwords and regular updates.
- Network Security:
- Use firewalls and virtual private networks (VPNs).
- Regularly update software and firmware.
- Access Control: Limit access to online banking platforms based on job requirements.
- Make sure that your passwords are strong and that you are frequently changing them.
- Make sure that you and your employees are using authorized devices on authenticated networks.
Immediate Actions if a CATO is Suspected
Businesses should have an incident response plan. Make sure to notify your financial institution immediately to halt unauthorized transactions and disconnect affected systems from the network to contain the breach. You should conduct a thorough forensic investigation to determine the scope of the attack. Report the incident to relevant authorities, such as the FBI’s Internet Crime Complaint Center (IC3).
Remember, the bank will NEVER ask for sensitive information such as Account Numbers, Access IDS, or Passwords via e-mail. Learn how to protect yourself from cybercriminals. Read more about CATO and find business resources. Feel free to reach out to Core Bank and we would be more than happy to discuss any and all situations that come your way.