Email Spoofing. Whilst it is a form of cyberattack that is commonly known about, it is one of the most dangerous actions that businesses, and individuals alike, can face from cybercriminals.
For business operations today, whether your organisation is small, medium, or large, email remains a core part of a company’s communication standards. However, this reliance also makes it a prime target for cybercriminals.
Among the extensive list of current cyber threats, email spoofing stands out as a particularly deceitful and tricky tactic, often serving as a gateway to more severe attacks like phishing and Business Email Compromise.
For business owners, understanding and mitigating the risks associated with email spoofing is not just a technical concern but a critical component of safeguarding their company’s reputation, finances, and data integrity.
What is Email Spoofing?
Email spoofing involves the creation of email messages with forged sender addresses. Cybercriminals manipulate the “From” field to make the email appear as though it’s coming from a trusted source, such as a colleague, business partner, or reputable organisation.
This deception aims to trick recipients into taking actions they otherwise wouldn’t, like clicking on malicious links, downloading harmful attachments, or divulging sensitive information.
Unlike hacking, which requires breaching security systems, spoofing exploits the inherent trust users place in familiar email addresses. This makes it a low-cost yet highly effective method for attackers to initiate their schemes.
The Business Impact of Email Spoofing
Financial Losses
One of the most immediate impacts of email spoofing is financial loss.
Spoofed emails often serve as the initial step in Business Email Compromise scams, where attackers impersonate company executives or vendors to trick employees into authorising fraudulent wire transfers. In 2023 alone, as an indication, Business Email Compromise scams cost businesses over $2.7 billion globally.
Business Email Compromise was ranked first for cybercrimes reported by Australian businesses that resulted in financial loss. It accounted for 13% of reports, equal with online banking fraud.
Data Breaches
Spoofed emails often carry malicious attachments or links that, when clicked, can install malware or ransomware on your company’s systems. This can lead to data breaches, exposing sensitive company and customer information, and potentially resulting in regulatory fines and legal liabilities.
Reputational Damage
When customers or partners receive spoofed emails that appear to come from your domain, trust is eroded, and brand reputation suffers. A single incident can lead to long-term loss of customer confidence, impacting sales and business relationships.
Similar to the real costs of a data breach for your business, the trust and confidence of a customer is delicate, now more than ever. With so many businesses operating, widening the options for existing and potential customers to access, it is crucial you don’t provide any reason for leaving.
Common Spoofing Techniques
Display Name Spoofing
Attackers use a familiar name in the “From” field while the actual email address is unrelated. For example, an email might display as “John Smith john.smith@trustedcompany.com” but actually originate from “malicious@attackersite.com”.
Domain Spoofing
Here, attackers forge the domain in the sender’s email address to mimic a legitimate domain closely. For instance, replacing “trustedcompany.com” with “trustedcornpany.com” (note the subtle change from ‘m’ to ‘rn’) to deceive recipients.
Lookalike Domains
Cybercriminals register domains that closely resemble legitimate ones, exploiting common typos or visual similarities, to trick users into trusting fraudulent emails.
Real-World Examples of Email Spoofing
There have been a number of real-world examples of email spoofing which have unfortunately impacted Australian businesses quite heavily.
In a notable case, a South Australian woman lost $813,000 after falling victim to a Business Email Compromise (BEC) scam. Believing she was transferring funds for a property purchase, she unknowingly sent the money to cybercriminals who had spoofed legitimate email addresses, altering just one letter to deceive her. This incident underscores the sophistication of email spoofing tactics and the importance of vigilance in financial transactions.
In September 2020, an Australian company suffered significant financial losses when fraudsters, posing as internal staff members, sent fake invoice emails with altered bank details to the company’s finance department. The company processed two payments totalling over $2.6 million to a fraudulent Singaporean bank account before realizing the deception. This case highlights the dangers of internal email spoofing and the need for stringent verification processes.
How Businesses can Help Prevent Email Spoofing
Implement Email Authentication Protocols
Utilise protocols like Sender Policy Framework, DomainKeys Identified Mail, and Domain-based Message Authentication, Reporting, and Conformance (DMARC) to authenticate your emails. These protocols help verify that emails claiming to come from your domain are indeed authorised, reducing the risk of spoofing.
Educate Employees
Regularly train staff to recognise signs of spoofed emails, such as unexpected requests for sensitive information, urgent language, or discrepancies in email addresses. Encourage them to verify suspicious emails through alternative communication channels before taking action.
Adept IT Solutions has a comprehensive variety of IT Cybersecurity and Policy Awareness Education that can be implemented into businesses to assist with educating employees.
Use Advanced Email Security Solutions
Deploy email security solutions that offer real-time threat detection, phishing protection, and spam filtering. These tools can help identify and block spoofed emails before they reach employees’ inboxes.
Adept IT Solutions offers a number of IT Services that include high levels of cybersecurity against email spoofing. These ensure that your emails, which are the primary tool for communication in majority of businesses, are safe.
Monitor and Analyse Email Traffic
Regularly monitor your email traffic for unusual patterns or unauthorised sending sources. DMARC reports can provide insights into who is sending emails on behalf of your domain, allowing you to detect and address potential spoofing attempts.
🚨 Spot the Email Spoofing – 5 Email Security Questions to Test Yourself!
Combat Email Spoofing Today with Adept IT Solutions
Email spoofing poses a significant threat to businesses, with potential consequences ranging from financial loss to reputational damage. By understanding how spoofing works and implementing robust cybersecurity measures, business owners can protect their organisations from these deceptive attacks.
Regular employee training, such as the ones offered by Adept IT Solutions, the use of authentication protocols, and proactive monitoring are key components of an effective cybersecurity defence strategy against email spoofing.
Staying informed and vigilant is essential in the ever-evolving landscape of cybersecurity threats. The team here at Adept IT Solutions has over 20 years of experience when it comes to providing reliable and trusted IT services to businesses of all sizes.
If you would like to ensure your business is best protected from cybercriminals, and set up for success, feel free to reach out to our experienced team today. You can contact us at at 1300 423 378 or simply email us at info@adept-it.com.au to talk further. We look forward to hearing from you!
