One of the top cyber crimes, and the most lucrative, are phishing scams.  Large corporations such as Sony have been jeopardized and accounts of these types of cyber crimes are being reported at a high rate.  Phishing scams are just as dangerous to small business owners as they are to large corporations.

Over 300,000 complaints were filed in 2010 to the Internet Crime Complaint Center, a partnership between the National White Collar Crime Center and the FBI.  These grievances were from small businesses and individuals wronged by online phishing scams and numerous other Internet related crimes.

Let’s look at what phishing really is, so that you can gain a greater awareness of why your small businesses may be targeted by a cyber criminal.

What is phishing?

Phishing is a serious problem, but the term can be a bit unclear. It is the act of illegally trying to obtain private information such as passwords, credit card account numbers, banking account information, usernames, or social security numbers.  Phishing is accomplished by creating fake logos, email addresses, authentic looking official websites, and phone numbers.  Victims are then under the illusion that it is official business and are compelled to give out their personal data, which in turn can be used to steal their identity.  Small businesses often suffer from phishing, as the goal is to gain access to their customer’s private information such as credit card account numbers.

Examples of small business phishing scams

Thousands of small business owners have been sent emails by an entity using incredibly authentic IRS-looking letters stating that W-4 forms or other additional forms must be filled out and returned via fax.  This frightened many owners into believing they would be audited or penalized by the IRS for not handling the issue immediately. Unfortunately, they were fraudulent emails and these companies were tricked out of their private information.

At the official website, IRS.gov, the IRS states that it will not contact companies through email first.
Beware and use caution before clicking on a link claiming to be from them.

Your company email can be a target

Company emails are easy access for thieves.  They can target an particular person by sending him or her an email that looks authentic, however when they open it, it can release a virus or malware infecting the entire network.  The thieves will then have access to employee’s private information and company data.

Phone phishing

Phone phishing refers to deceitful phone calls where thieves posture as banks and request the victim to “verify” account numbers over the phone in order to steal confidential information.

How to protect your business against phishing

Visiting the Anti-Phishing Work Group will give you wise advice to shield your business against phishing scams and gives you valuable information on how to avoid becoming a victim. Some of their advice follows, such as:

• Make sure your employees are aware of what phishing scams are, and are cautious when reading and responding to suspicious emails.  Always err on the side of caution.  Instead of clicking a link, open another browser window and go to the official website.
• Never give out company financial information such as bank routing numbers to an inquiry made via email.  Your bank does not need you to confirm your account information…they already have that. An email like that even if it has your bank’s logo is a fake. Make it a habit to check your accounts regularly for suspicious charges and withdrawals.
• Make sure every computer used has up-to-date virus and malware protection.  Schedule regular full system scans.  Never download “anti-virus” software from an unknown entity. It’s better to stick with trusted brands.

The APWG keeps statistics on phishing scams and offers lots of information on safe guarding your business.  Phishing is almost impossible for law enforcement to stop.  The best defense is to educate yourself and your employees on how to identify phishing scams and stay up to date on the latest information.