As Silicon Valley races to release new, AI-powered technologies, everyday people and the businesses that serve them are faced with a new breed of digital security concerns. While families talk around the kitchen table about how to protect themselves from digital fraudsters, businesses are also building much-needed strategies for protecting the data and assets their clientele and shareholders have entrusted to them.
Scott Birmingham, Principal Consultant at Birmingham Consulting Inc. (BCI), has seen first hand how expensive and damaging it can be when companies are unprepared for digital fraud. A consulting firm came to BCI to tighten their security processes after an international scam cost them a significant sum.
“This was accounts receivable and accounts payable fraud, which usually starts with a phishing email,” Mr. Birmingham explains. “People always think ransomware is the most dangerous thing, but in this case, the bad guys impersonated a supplier to a multinational building company and they managed to get a payment redirected.”
The redirected payment, which totalled $600,000, was sent to fraudsters instead of the supplier who rightfully deserved it. BCI helps companies understand their risk of scams like this, and other security vulnerabilities companies may have. BCI’s online calculator helps businesses determine approximately how much money it would cost a business if they had to shut down in the event of a breach. It’s a convincing way to make the case for improving security standards, and serves as a helpful motivator for socializing staff to uphold stringent prevention processes and best practices.
“Cyber security is a subset of information security,” Mr. Birmingham says. “Cyber is the technical part: what apps do you use? What kind of software? What about a spam filter? How are these configured to prevent bad guys from getting access to things? Then there’s another piece: do you have written policies and procedures in place so people know what not to do, or what to do in the case of a problem? That’s so important to have because everyone is panicking when there’s an incident.”
The company who lost $600,000, it turns out, was in violation of their own security policies. Just like families around their kitchen tables, it’s important for companies to ensure that staff understands their role in keeping information safe.
“What’s old is new again. The same scams that were effective twenty years ago are back, but updated. Now, a phishing email that looks like it's from your boss could be followed up by a phone call using a familiar voice that’s really AI.”
As everyone adjusts to the new need for improved digital safety, BCI’s team is helping companies patch holes in their best practices for protecting what’s important to them, and their clients and stakeholders.
Learn more about modern day risks and how to mitigate them at https://birmingham.ca.
