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Cyberattacks Internal Fraud Overwhelm Businesses With Massive Losses

Cyberattacks, Internal Fraud Overwhelm Businesses With Massive Losses

June 14, 2021 at 01:00PM
by PYMNTS

B2B fraud and cybersecurity technology are surging as cyber threats ramp up against the enterprise and as multimillion-dollar hauls from cybercriminals make headlines.

Just this week, Worldline announced a partnership with Microsoft to enable companies with digital-first business models to mitigate fraud risks by integrating Dynamics 365 Fraud Protection into Worldline’s digital payments solution for eCommerce firms.

Citing the $12 billion in estimated global fraud losses, Worldline’s announcement coincided with revelations about the latest ransomware payments and risks emerging. And while consumer payments can be susceptible to fraud, many firms are grappling with the consequences of B2B payments fraud too as they navigate other threats.

This week’s B2B Data Digest digs into the latest numbers behind B2B payment fraud, ransomware and other cyber threats targeting companies of all sizes.

$48,000 was stolen from a small business in Greece that fell victim to a business email compromise (BEC) scam, local reports in Cyprus Mail revealed. The cybercriminal posed as a legitimate supplier requesting immediate payment on an order that the business had actually made — suggesting the attacker had infiltrated the company’s email accounts. After the payment was made, the business informed the real supplier, which confirmed that it had not actually received any money. Local law enforcement is reportedly investigating the matter.

$700,000 was allegedly embezzled by a bookkeeper of a Missouri farm and trucking company, CCJ Digital reports revealed. The fleet employee pled guilty to two counts of wire fraud, one count of bank fraud, and one count of money laundering. Reports said the fraud involved the individual stealing company commercial cards for personal expenses and then fraudulently obtaining new commercial cards. Other aspects of the scheme included forging signatures on checks, reports added.

$800,000 worth of payroll payments were diverted to fraudsters’ debit cards, according to the Federal Bureau of Investigation, which has just made another arrest as part of the case. Reports in Nairametrics said the FBI discovered an individual was allegedly controlling prepaid debit cards used to steal payroll funds by infiltrating a payroll processing company’s systems and redirecting payouts. In a statement, FBI Assistant Director William F. Sweeney Jr. said, “ Cyber intrusions ripple through everything our society relies upon  — this one impacted people’s paycheck.”

$2 million worth of a business loan was reportedly fraudulently obtained by a Hollywood CEO, reports in Daily News said. The CEO, which headed two production companies, has agreed to plead guilty to wire fraud related to reportedly fabricating corporate finance documents in order to obtain the loan. The U.S. Attorney’s Office said the individual faces up to 20 years in prison. Part of the fraud involved fabricating accounts receivable documents, with the individual claiming that his companies were owed more than $3.3 million in receivables; he also allegedly falsified a document used to claim a $100,000 wire payment to the lender was on its way.

$7.5 million worth of fraudulent B2B transactions were detected by Indian law enforcement, reports recently revealed. The Directorate General of GST Intelligence reportedly arrested a supplier of an unnamed iron and steel manufacturer. Law enforcement claims that the supplier facilitated the creation of fake invoices and sent it to the manufacturer, which did not actually receive any goods, in an effort to claim fraudulent Input Tax Credit. The investigation is ongoing, reports noted.

$11 million was paid by meat supplier JBS to ransomware attackers, the company revealed, mere days after the U.S. government recovered more than half of the $4.4 million paid to ransomware attackers by Colonial Pipeline. The high-value payments continue to raise alarms among cybersecurity experts as well as U.S. law enforcement, which are urging businesses not to pay ransomware payments. According to reports in the Wall Street Journal, JBS USA Holdings, a division of Brazil-based JBS,  paid the ransomware in bitcoin in an effort to regain control of its systems and avoid further disruption. In a statement, the firm’s chief executive, Andre Nogueira, said it was “the right thing” to do for its customers.