The dark side of the internet

Cyber-attacks are becoming a genuine threat to Kiwi trade businesses. Have you taken the simple steps needed to protect your electronic records, email, banking and invoicing data from viruses, hacking or ransomware?

Attacks on small businesses have skyrocketed in the past 12 months, as hackers target poorly protected systems for ransom.

In May 2016, hackers took control of a number of email accounts belonging to New Zealand building businesses and sent out fake invoices to their clients.

In one case, a Christchurch woman lost more than $25,000 after she received what appeared to be an email from the building company repairing her earthquake-damaged home asking her to make a payment into a different bank account because the company’s usual account was being audited.

The fraud was only detected when, around two weeks later, she met with her builders who wanted to know why the invoice hadn’t been paid.

The money was unable to be recovered, as it had been transferred to an overseas bank account.   

An IT specialist found that the builder’s company email had been hacked by someone in Nigeria. It was not an isolated incident; police reported that several other Christchurch businesses – including two other building firms – had been hacked.

Duped customers ended up handing over more than $100,000 in total, but about two-thirds of it was later recovered by the respective banks. 

Why builders?

It appears scammers are targeting builders because they are more likely to send invoices for large, one-off amounts.

While most builders might assume this won’t happen to them, it’s worth considering the following:

• You’re now more likely to become a victim of a cyber-attack than a burglary.
• In 2015, more than half of all crime in the UK was computer-enabled and cyber-crime is becoming easier to do, more aggressive and more sophisticated.
• In the same year, cybercrime cost New Zealand businesses more than $250m, with the number of incidents globally growing 38% year-on-year.

All it takes is a click on a link in an email, a website that looks legitimate or through a Facebook post and you’ve infected your computer or mobile device.

Hackers can then send your customers false invoices, try to hack your bank accounts or even shut down your systems and demand a ransom (often up to thousands of dollars) to release your files.

There are some simple steps you can take to minimise your risk of exposure to a cyber-attack, including some basic training for you and your staff.

How to protect yourself

Do you have up-to-date virus, firewall and malware software running?

Microsoft provides a free product and there are other well-known providers such as Norton, McAfee and Kaspersky. Consider also the following questions:

• Do you have a password set up on your computer and pin number for your phone?
• Who else has access to your computer and devices, and are you confident they wouldn’t accidentally infect it by clicking on a dodgy link?
• Are sensitive files locked or protected?
• How strong is your email password and is it the same as your internet banking one? If they support two-factor authentication (a method of confirming a user’s identity by utilising a combination of two different components, such as a password and fingerprint recognition software) you should consider this.
• Do you back up all your files to an external drive or remote location? You can schedule these in Windows or have your IT provider set one up for you.
• How would your reputation be affected if your customers were targeted by a hacker posing as you?

Further measures

To ensure you’re as prepared as possible to prevent cybercrime, consider having an independent specialist audit your systems. However, if the worst does occur, there is also good insurance available, which provides immediate professional support to get you back up and running quickly, as well as reimbursing your losses.

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Builtin Insurance is a specialist in insurance and guarantees for builders and trade professionals. 
For more information visit www.builtin.co.nz or contact Ben Rickard at ben@builtin.co.nz or 0800 BUILTIN.