175.000 EUR stolen from The municipality of Krimpen aan den IJSSEL

The municipality of Krimpen aan den IJssel in South Holland, the Netherlands fell victim to a CEO fraud cyberattack, losing over 175,000 euros.

A criminal organization impersonated a director of the municipality and asked an employee to pay several invoices via email. As a result, the municipality transferred funds to multiple foreign accounts. This is just one example of the increasing number of CEO fraud cases reported to the Dutch Fraud Helpdesk, which has received close to one hundred reports so far.

CEO fraud, also known as whaling, is a type of cybercrime that involves impersonating a senior executive or CEO of an organization to deceive an employee into performing an action that results in a financial loss. The attackers often use social engineering techniques to gain the trust of the employee and convince them to carry out a task that is in fact fraudulent. In most cases, the attackers will use email as the primary communication method, but they can also use other forms of communication, such as text messages or phone calls.

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The consequences of CEO fraud can be devastating for businesses and organizations. Not only does it cause financial losses, but it can also harm the reputation of the organization and undermine employee morale.

To avoid falling victim to CEO fraud, organizations should implement security measures such as two-factor authentication, strong passwords, and network segmentation. However, perhaps the most effective way to prevent CEO fraud is through employee education and awareness. Organizations should train their employees on how to recognize suspicious emails, verify requests for payments or sensitive information, and report any suspicious activity to their IT department.

In the case of Krimpen aan den IJssel, the municipality plans to provide additional training to its employees on how to recognize and report fraudulent emails, as well as increase monitoring of payment processes. The municipality has also apologized to the council and informed its members of the incident. Finally, the municipality has filed a police report to investigate the incident.

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