Protect Yourself Against Social Engineering

Small business owners face a multitude of cyber threats, with social engineering attacks being among the most insidious. These attacks exploit human psychology to manipulate individuals into divulging confidential information or performing actions that compromise security. Understanding the tactics cybercriminals employ is crucial for safeguarding your organization.

What is Social Engineering?

Social engineering involves manipulating individuals to perform actions or divulge confidential information. Unlike technical hacking methods that exploit system vulnerabilities, social engineering targets human vulnerabilities. Cybercriminals rely on psychological manipulation, often appealing to users’ emotions, sense of urgency, friendliness, or willingness to help others. These attacks exploit fundamental aspects of human nature, such as trust and the instinct to assist.

Attackers may use sympathy by pretending to be in distress, urgency by claiming an immediate security threat, or authority by impersonating executives or law enforcement. Additionally, social engineers leverage curiosity—such as baiting victims with a seemingly interesting email attachment—or reciprocity, where an attacker offers help in return for access to information. Because these techniques exploit ingrained social behaviors, even well-trained individuals can be susceptible without constant vigilance. Common tactics include phishing emails, pretexting (fabricating scenarios to obtain information), baiting (offering something enticing to lure victims), and tailgating (following someone into a restricted area).

Social Engineering Attacks

Cyber criminals often prey upon service organizations, because their workforce is trained to reply quickly and dutifully to their clients. Employees default to obedience with customers and cyber criminals exploit this fact. Several high profile attacks illustrate the risks.

1. Insider Threats in Financial Institutions

In December 2024, reports surfaced about bank employees selling customer data to online scammers. Lower-paid staff members were implicated in leaking sensitive information, facilitating scams that drained customers’ savings. This underscores the importance of internal security measures and employee vetting within financial institutions. (1)

2. Ransomware Attack on SRP Federal Credit Union

SRP Federal Credit Union experienced a ransomware attack that compromised personal information of over 240,000 individuals. The breach included names, dates of birth, driver’s license numbers, Social Security numbers, and financial information. This incident highlights the devastating impact of ransomware attacks on financial institutions and their customers. (2)

3. Patelco Credit Union’s Service Disruption

In June 2024, Patelco Credit Union suffered a ransomware attack that halted banking services for nearly half a million members. The attack led to a prolonged outage, preventing customers from accessing online banking, mobile apps, and even conducting debit and credit card transactions. This incident illustrates how cyberattacks can severely disrupt financial services and affect a large customer base. (3)

4. Breakwater Federal Credit Union Fraud Attack

Breakwater Federal Credit Union was targeted in a card-based fraud attack, compromising approximately 500 debit cards. Of these, 147 saw fraudulent transactions totaling around $43,139. The attack involved automated software guessing card numbers, emphasizing the need for robust security measures to protect against such fraudulent activities. (4)

5. North Korean Crypto Heists

In 2024, North Korean hackers stole over $650 million in cryptocurrencies through sophisticated social engineering and phishing methods. The largest theft was $308 million from Japan’s DMM Bitcoin exchange, leading to its closure. These incidents highlight the global scale of social engineering attacks and their significant financial impact. (5)

Protective Measures

To defend against social engineering attacks, small business owners should consider the following strategies:

• Employee Training: Regularly educate staff about recognizing and responding to social engineering attempts. Simulated phishing exercises can be effective in raising awareness.
• Implement Multi-Factor Authentication (MFA): Requiring multiple forms of verification adds an extra layer of security, making it more difficult for attackers to gain unauthorized access.
• Establish Clear Protocols: Develop and enforce policies for handling sensitive information and verifying unusual requests, such as financial transactions or data access.
• Regular Security Audits: Conduct periodic assessments to identify and address vulnerabilities within your systems and processes.
• Secure Physical Access: Ensure that only authorized personnel have access to sensitive areas and information, preventing unauthorized physical breaches.

Conclusion

Social engineering attacks pose a significant threat to businesses of all sizes. By understanding the tactics used by cybercriminals and implementing robust security measures, small business owners can protect their organizations from these deceptive practices. Staying informed about recent incidents and continuously educating employees are key components of a comprehensive cybersecurity strategy.

Dynamic Edge Can Help

Since 1999, Dynamic Edge has helped hundreds of small and mid-sized businesses maximize the return on their technology investment. Contact us today for a free network assessment, so that we may help you implement cost-effective security solutions to keep your organization and its clients safe and productive. Our Help Desk features friendly, experienced engineers who answer calls live and solve more than 70% of issues on the first call.