Did your CEO just email you to wire US$300k to an unknown account?

Did your CEO just email you to wire US$300k to an unknown account?

The message even seems to originate from your office email domain except for one letter… Beware the era of conversation hijacking!

Researchers have seen a sharp rise in domain-impersonation attacks used to facilitate “conversation hijacking”, making it more effective and costly to enterprise.

In 2019, the Singapore Police Force said there were 279 reports of business email impersonation between January and September that caused S$32 million to be lost. An analysis of about 500,000 monthly email attacks by Barracuda researchers in recent months shows a 400% increase in domain-impersonation attacks used for conversation hijacking.

In July 2019, there were about 500 of this type of domain-impersonation attack in the emails analyzed. That number grew to more than 2,000 in November. Enterprises should be beware of cybercriminals using conversation hijacking to steal money and sensitive personal information.

Threat Spotlight Impersonation Phishing 1024x536

While the volume of conversation hijacking in domain-impersonation attacks is extremely low compared to other types of phishing attacks, these sophisticated attacks are very personalized, making them effective, hard to detect and costly in damage potential.

What is conversation hijacking?

This scheme involves the use of emails crafted to appear to originate from important people in a victim’s organization. Cybercriminals insert themselves into existing business conversations or initiate new conversations based on information they have gathered from compromised email accounts or other sources.

The hijacking of familiar turns of phrases and recognizable writing styles helps the cybercriminal to convince victims that the email is really from their bosses. Conversation hijacking is typically, but not always, part of an account-takeover attack. Attackers spend time reading through emails and monitoring the compromised account to understand business operations and learn about deals in progress, payment procedures, and other details. 

Cybercriminals rarely use the compromised accounts for conversation hijacking. Instead, attackers use email-domain impersonation. They leverage information from the compromised accounts, including internal and external conversations between employees, partners, and customers, to craft convincing messages, send them from impersonated domains, and trick victims into wiring money or updating payment information.

To execute conversation-hijacking attacks, cybercriminals use domain impersonation, including typo-squatting techniques, such as replacing one letter in a legitimate URL with a similar letter, or adding an unnoticeable letter to the legitimate URL. In preparation for the attack, cybercriminals will register or buy the impersonating domain. 

Domain impersonation is a very high-impact attack. It can be easy to miss the subtle differences between the legitimate URL and the impersonated URL. 

For example, an attacker trying to impersonate barracudanetworks.com would use a very similar URL: 

  • barracudaneteworks.com
  • barrracudaneteworks.com

Sometimes, an attacker changes the Top-Level-Domain (TLD), using .net or .co instead of .com, to fool victims:

  • barracudanetworks.net
  • barracudanetworks.co 

Hardening employees against such attacks

Use a variety of cybersecurity technology and techniques to protect your business from conversation hijacking:

  1. Train employees to recognize and report attacks
    Educate users about email attacks, including conversation hijacking and domain impersonation, as part of security-awareness training. Ensure staffers can recognize attacks, understand their fraudulent nature, and know how to report them. Use phishing simulation to train users to identify cyberattacks, test the effectiveness of your training, and evaluate the users most vulnerable to attacks.
  2. Deploy account-takeover protection
    Many conversation hijacking attacks will start with account takeover, so be sure scammers are not using your organization to launch them. Use multi-factor authentication to provide an additional layer of security above and beyond a username and password. Deploy technology that recognizes when accounts have been compromised and that remediates in real time by alerting users and removing malicious emails sent from compromised accounts.
  3. Monitor inbox rules, account logins, and domain registrations
    Use technology to identify suspicious activity, including logins from unusual locations and IP addresses, a potential sign of a compromised account. Be sure to also monitor email accounts for malicious inbox rules, as they are often used as part of account takeover. Criminals log into the compromised account, create forwarding rules, and hide or delete any email they send from the account, to try to cover their tracks. Keep an eye on new domain registrations that could potentially be used for impersonation through typo-squatting techniques. Many organizations choose to purchase domains that are closely related to their own to avoid potential fraudulent use by cybercriminals. 
  4. Leverage artificial intelligence
    Scammers are adapting email tactics to bypass gateways and spam filters, so it is critical to have a solution in place that uses artificial intelligence to detect and block attacks, including account takeover and domain impersonation. Deploy purpose-built technology that does not rely solely on looking for malicious links or attachments. Using machine learning to analyze normal communication patterns within your organization allows the solution to spot anomalies that may indicate an attack.

Strengthen internal policies

Finally, help employees to avoid making costly mistakes: create guidelines and put procedures in place to confirm all email requests for wire transfers and payment changes. Require in-person or telephone confirmation and/or approval from multiple people for all financial transactions.

Source : This article was originally published at cybersecasia.net on January 17, 2020.