Chances are you or someone you know has been the victim of an online scam. It’s alarming how prevalent and sophisticated online scams have become, touching nearly everyone in some way. When we reached out to our team, the stories we heard ranged from the sublime to the ridiculous:
- “My cousin’s mother-in-law was scammed out of $10k over the phone.”
- “My poppy was scammed over the phone; it was so distressing that it landed him in the hospital because he couldn’t breathe.”
- “My daughter was targeted via text message.”
- “My husband’s friend knows someone who was scammed out of $60k by an email claiming to be from Jon Bon Jovi, asking for funding for the new Bon Jovi album.”
These real-life examples highlight just how diverse and devastating scams can be. While these incidents may deeply affect individuals on a personal level, organisations are far from immune to scams. In fact, businesses can be even more vulnerable given the higher stakes involved—financial losses, reputational damage, and the potential compromise of sensitive data. Scammers often target organisations with the intent of stealing money, data, or both, using tactics that exploit trust.
As we mark Scam Awareness Week, it’s crucial to understand the different types of scams we might encounter and how implementing robust security measures, like ISO/IEC 27001, can provide vital protection for business assets. According to the Australian Competition and Consumer Commission’s (ACCC) Targeting Scams report, Australians made over 601,000 scam reports in 2023, an 18.5% increase on 2022. The financial toll of scams on businesses is staggering, contributing to increased costs for consumers, diminished investor confidence, and a more challenging business environment. By proactively addressing these threats, organisations can not only protect themselves but also contribute to the overall resilience of the Australian economy.
Types of Scams That Can Affect Organisations
Organisations can face a variety of scams that can impact their cybersecurity. These scams are often designed to exploit human vulnerabilities or technical weaknesses to gain unauthorised access to sensitive information, disrupt operations, or cause financial loss. Here are some common types of scams that can affect an organisation’s cybersecurity:
- Phishing
- Description: Phishing scams involve sending fraudulent emails that appear to be from legitimate sources to trick recipients into revealing sensitive information (e.g., passwords, financial data) or downloading malicious software.
- Variants: Spear phishing (targeted at specific individuals), whaling (targeting high-profile executives), and vishing (voice phishing).
- Business Email Compromise (BEC)
- Description: BEC scams involve hackers compromising or spoofing a business email account to trick employees into transferring funds or sharing confidential information.
- Variants: CEO fraud, account compromise, and fake invoice scams.
- Social Engineering
- Description: Social engineering involves manipulating individuals into divulging confidential information or performing actions that compromise security. Scammers may pose as IT support, trusted vendors, or even colleagues.
- Techniques: Pretexting, baiting, and quid pro quo
- Tech Support Scams
- Description: Scammers pose as technical support representatives from well-known companies, claiming that the organisation’s systems are compromised and offering to fix the issue for a fee or by gaining remote access.
- Target: Employees who may not be well-versed in cybersecurity practices.
- Man-in-the-Middle (MitM) Attacks
- Description: In MitM attacks, scammers intercept and potentially alter communications between two parties without their knowledge, often to steal sensitive information or insert malicious commands.
- Scenarios: Public Wi-Fi networks, compromised routers, and fake websites.
- Invoice Fraud
- Description: Fraudsters send fake invoices that appear legitimate, tricking businesses into paying for goods or services that were never provided. This can happen when attackers impersonate suppliers or intercept communications.
- Method: Often involves altering legitimate invoices or creating fake ones that look authentic.
These are just a few examples of the numerous scams that organisations face daily, highlighting the need for robust information security measures to protect against such threats.
The Role of ISO/IEC 27001 in Protecting Against Scams
ISO/IEC 27001 is an internationally recognised standard for information security management systems (ISMS). It provides a systematic approach to managing sensitive company information, ensuring its confidentiality, integrity, and availability. Here’s how implementing ISO/IEC 27001 can help protect your business from scams:
- Risk Assessment and Management:
ISO/IEC 27001 requires organisations to conduct thorough risk assessments to identify potential security threats, including those posed by scams. By understanding these risks, businesses can implement appropriate controls to mitigate them, reducing the likelihood of falling victim to scams.
- Threat and Vulnerability Assessment:
In addition to risk assessment, ISO/IEC 27001 emphasises the importance of conducting regular threat and vulnerability assessments. This involves identifying specific threats to the organisation, such as emerging scam tactics, and assessing the vulnerabilities in the current security posture that could be exploited. By regularly evaluating these aspects, organisations can proactively address weaknesses before they are exploited by scammers. This continuous assessment ensures that the organisation’s defences remain strong and responsive to new and evolving threats.
- Robust Security Controls:
The standard mandates the implementation of a wide range of security controls, including access management, encryption, and regular audits. These controls help safeguard sensitive information, making it harder for scammers to access or exploit company data.
- Employee Awareness and Competence:
One of the critical aspects of ISO/IEC 27001 is ensuring that employees are aware of security policies and are competent to manage information security risks appropriate to their role. This is vital in combating scams like phishing and BEC, where human error is often the weak link. By educating staff on how to recognise and respond to potential scams, businesses can significantly reduce their vulnerability. This can also extend to contractors and other forms of workers if they impact an organisation’s information security practices.
- Incident Response and Recovery:
Despite the best precautions, scams can still occur. ISO/IEC 27001 ensures that organisations have an incident response plan in place, allowing them to quickly and effectively respond to security breaches. This includes identifying the scam, containing the damage, and recovering any lost data.
- Continual Improvement:
ISO/IEC 27001 promotes a culture of continual improvement, meaning businesses are always refining their security practices. This proactive approach ensures that as new scam tactics emerge, the organisation is well-prepared to defend against them.
Conclusion
As scams become more sophisticated, the importance of a robust security framework cannot be overstated. By implementing ISO/IEC 27001, businesses can protect themselves from the financial and reputational damage caused by scams. Moreover, adopting such standards sends a clear message to clients, partners, and employees that your organisation takes information security seriously.
During Scam Awareness Week, take the time to review your security practices and consider the benefits of ISO/IEC 27001. It’s an investment in the safety and integrity of your business that can pay dividends in the fight against fraud.
RTP offers comprehensive training in ISO 27001 Information Security Management Systems. Whether you’re looking to upskill yourself or enhance your entire team’s expertise, we can help. Find out more here.
