According to the FBI Internet Crime 2020 Report, phishing scams were the most prominent attack in 2020 with 241,342 complaints reported and adjusted losses of $54 million. In particular, whaling (a highly targeted phishing attack) has been on the rise and is only expected to grow from here. A whaling attack targets high-profile executives with access to valuable information and systems. Let’s take a closer look at whaling attacks and how to stay protected.
What is a whaling attack and how does it work?
A whaling attack, also known as whaling phishing, is a method used by attackers to disguise themselves as senior executives at an organization with the goal of gaining access to sensitive information and computer systems for criminal purposes. In most whaling attacks, hackers impersonate the CEO or other corporate officers to persuade top-level employees to carry out financial transfers, authorize high-value wire transfers, or disclose sensitive information.
Whaling attacks are difficult to detect and often come in the form of emails and website links. Hackers typically incorporate the victim’s name, job title, and other relevant information obtained from a variety of online sources. Unlike standard phishing methods, whaling is highly targeted and personalized in nature, and targets key individuals in a sophisticated way, making it difficult to detect and prevent. To reduce the effectiveness of whaling attacks, security administrators can encourage senior-level employees and executives to undergo information cybersecurity awareness training.
Top consequences of a whaling attack
Whaling does not require extensive knowledge to execute, but successful attacks can deliver huge financial returns for cybercriminals. Here are the top consequences that organizations experience in the event of a whaling attack.
Data breach
Hackers often send seemingly innocuous emails to executives, convincing them to click on a malicious link or download an attachment. This can result in malware infecting the corporate networks, allowing them to steal valuable data and information. The effects of a data breach can be felt across the organization, in every department, and can have severe long-lasting consequences.
Damage to reputation
Your reputation means everything. Trust is a crucial component of the customer relationship and business continuity. Whaling attacks can damage your reputation and customers’ trust in your business. PricewaterhouseCoopers (PwC) reported that 87% of customers surveyed are willing to take their business elsewhere if a data breach occurs. This suggests that customers are not only skeptical of organizations that house their critical assets but are unwilling to work with a company that experiences a data breach. For that reason, organizations need to do whatever it takes to save their brand reputation and image.
Financial loss
Without a doubt, whaling attacks can result in significant financial loss stemming from:
- Theft of corporate data and information
- Theft of financial information
- Loss of business or contract
- Interruption to trading, such as inability to carry out online transactions
- Successfully executed transactions with fraudulent accounts
In addition, organizations that are recovering from a cyberattack will often also deal with costs associated with repairing affected systems, networks, and devices.
Real-life examples of whaling attacks
To help you understand how damaging whaling attacks can be, here are some real-life examples of businesses that fell victim to this form of cybercrime:
Snapchat
Back in 2016, Snapchat (a popular mobile messaging app) experienced a whaling attack when a high-ranking executive fell for a CEO fraud email. The employee was tricked into revealing employee payroll information to the attacker. Ultimately, the crime was reported to the FBI, and Snapchat offered their employees two years of free identity theft insurance.
Seagate
Seagate is a data storage company that was involved in a whaling attack back in 2016. A Seagate executive unknowingly revealed the W-2 forms of all current and former employees to an unauthorized third party. The unfortunate incident resulted in the exposure of nearly 10,000 employees’ income tax data, leaving them vulnerable to identity theft.
FACC
Another well-known whaling attack involved the removal of FACC CEO, Walter Stephen, who fell victim to this cybercrime. The attack involved hackers impersonating Stephen in an email to transfer money to an account, allowing the criminals to steal around 50 million euros.
How SecurityScorecard can help
Whaling attacks are more difficult to catch because they are highly personalized and only target specific individuals in an organization. However, your organization can still be proactive in your cybersecurity methods to effectively prevent these kinds of attacks from happening.
SecurityScorecard’s Security Ratings offer easy-to-read A-F ratings of the security posture of your IT infrastructure. Our platform can give you further insights into potential security vulnerabilities that can make whaling attacks more successful. With an easy-to-use customizable dashboard, you’ll have comprehensive visibility of your network and the most critical and common risks for your organization, enabling you to drill down and prioritize remediation. Get started today.
