TORONTO: Attempts at cyber wire fraud globally, via emails purporting to be from trusted business associates, surged in the last seven months of 2016, the US Federal Bureau of Investigation (FBI) said in a warning to businesses.
Fraudsters sought to steal $5.3 billion through schemes known as business email compromise from October 2013 through December, the FBI said in a report released Thursday by its Internet Crime Complaint Center (ICCC).
The figure is up sharply from the FBI’s previous report, which said thieves attempted to steal $3.1 billion from October 2013 through May 2016, according to a survey of cases from law-enforcement agencies around the world.
The number of business-email compromise cases, in which cyber criminals request wire transfers in emails that look like they are from senior corporate executives or business suppliers who regularly request payments, almost doubled from May to December of last year, rising to 40,203 from 22,143, the FBI said.
The survey does not track how much money was actually lost to criminals.
Robert Holmes, who studies business email compromise for security firm Proofpoint Inc., estimated the incidents collated by the FBI represent just 20 percent of the total, and that the actual losses could be as much as double the figures reported by the FBI.
The losses are growing as scammers become more sophisticated, delving deeper into corporate finance departments to find susceptible targets, he said.
“This is not a volume play; it is a carefully researched play,” he said.
The US is by far the biggest target market, though fraudsters have started to expand in other developed countries, including Australia, Britain, France and Germany, Holmes said.
The FBI has said that about one in four US victims responds by wiring money to fraudsters. In some of those cases, authorities have been able to identify the crimes in time to help victims recover the funds from banks before the criminals pulled them out of the system.
The US Department of Justice said in March that it had charged a Lithuanian man with orchestrating a fraudulent email scheme that had tricked agents and employees of two US-based Internet companies into wiring more than $100 million to overseas bank accounts.
Fraudsters have also used spoofed emails to trick corporate workers into releasing sensitive data, including wage and tax reports, according to the advisory.
FBI warns of surge in wire-transfer fraud via spoofed emails
FBI warns of surge in wire-transfer fraud via spoofed emails
CMA CGM, global carriers suspend Gulf transits on security fears
RIYADH: Shipping and logistics across the Middle East were disrupted after major carriers halted routes and ordered vessels to seek shelter following joint US-Israeli attacks on Iran and Tehran’s warning restricting transit through the Strait of Hormuz.
At least 150 tankers, including crude oil and liquefied natural gas vessels, dropped anchor in open Gulf waters beyond the Strait of Hormuz, while dozens more were stationary on the other side of the chokepoint, shipping data showed on March 1, Reuters reported.
The tankers were clustered in open waters off the coasts of major Gulf oil producers, including Iraq and Saudi Arabia, as well as LNG giant Qatar, according to Reuters estimates based on ship-tracking data from the MarineTraffic platform.
This comes as French shipping giant CMA CGM instructed vessels operating in the Gulf to move to safe shelter and suspended some Suez Canal transits as security risks escalated along one of the world’s busiest trade routes.
The Strait of Hormuz, a narrow waterway between Iran and Oman, is one of the world’s most critical energy chokepoints, carrying about 30 percent of global oil supplies along with significant volumes of liquefied natural gas.
The world’s third-largest container line said all vessels currently inside or bound for the Persian Gulf had been instructed to proceed immediately to safe shelter, while certain canal transits were halted until further notice and ships were rerouted via the Cape of Good Hope, according to a statement.
The precautionary move comes as shipping companies reassess operations across the region following military strikes and retaliatory attacks that have heightened security risks along critical maritime corridors linking Asia, Europe, and the Middle East.
“This decision is dictated by safety considerations and is made in compliance with our Bill of Lading Terms and Conditions,” the statement said.
It added: “Customers will be contacted as soon as we have more details of the possible alternative ports where their cargo could be discharged.”
The UK Maritime Trade Operations warned that the regional maritime security environment remains unstable, citing heightened military activity across key shipping lanes.
“The maritime security environment across the Arabian Gulf, Gulf of Oman, North Arabian Sea, Bab al Mandab and the Strait of Hormuz remains highly volatile, with ongoing regional military activity contributing to an elevated threat to commercial shipping,” UKMTO said in an advisory.
The agency added that mariners should expect disruption to navigation and communications systems.
UKMTO said there is “significant military presence and activity across the region” and warned vessels of an increased risk of miscalculation or misidentification near sensitive maritime infrastructure.
Despite circulating reports, the agency said “no official closure of the Strait of Hormuz has been formally communicated to the maritime industry through recognized maritime safety channels.”
Separately, Japanese shipping companies have also begun restricting movements near the Strait of Hormuz, Reuters reported.
Nippon Yusen instructed vessels to halt transit in the area on Feb. 28, while Mitsui O.S.K. Lines said its ships were remaining in safe waters, citing crew and cargo safety as its top priority.
Kawasaki Kisen Kaisha said several of its vessels in the Persian Gulf were placed on standby, noting that, unlike other maritime routes, there are limited diversion options for ships operating near the strait.
“Until the situation stabilizes, we will not attempt to send vessels through the strait, nor dispatch additional ships towards the area,” a spokesperson said.
German shipping group Hapag-Lloyd has also suspended all vessel transit through the Strait of Hormuz until further notice because of the evolving security situation, it said.
This comes as a Palau-flagged oil tanker was hit off Oman’s Musandam peninsula on March 1, injuring four crew members, the country’s Maritime Security Centre said, following drone strikes on the Gulf nation’s commercial port of Duqm, Reuters reported.
The incidents mark the first time targets in or near Oman have been struck since Tehran launched retaliatory attacks across Gulf states after joint US-Israeli strikes on Iran.
The 20-member crew of the Skylight tanker was evacuated after the attack, which occurred about five nautical miles north of Khasab Port in Musandam, according to the maritime authority in a post on X. The centre did not specify what hit the vessel but said four crew members, among them 15 Indian and five Iranian nationals, suffered injuries of varying severity.
Oman’s Musandam peninsula shares control of the Strait of Hormuz with Iran, a strategic chokepoint through which roughly one-fifth of global oil consumption passes.
Earlier in the day, Oman’s state news agency reported that Duqm commercial port was struck by two drones, injuring one expatriate worker. Debris from another drone fell near fuel storage tanks, though no additional casualties or material damage were recorded.
