Phishing is among the oldest forms of cybercrime, dating back to when email was first introduced in the early 90s. Over the years, it has become a go-to tactic for cybercriminals, with an estimated 75% of all cybersecurity threats arriving through email in 2024.
Recently, a new trend of phishing known as whaling phishing has emerged, which specifically targets C-suite executives and other high-ranking individuals. Unlike traditional phishing attempts that are usually somewhat random and distributed to high volumes of recipients, whaling messages contain tailored messaging aimed to exploit an executive’s access, authority, and public exposure.
The consequences of a successful whaling phishing attack can be severe, both for the executive and the organization. Financially, such attacks can lead to fraudulent wire transfers and theft of company funds, along with fines due to regulatory breaches. If threat actors gain access to sensitive systems, the damage could extend to include customer identity theft, malware or ransomware installations, and extended downtime.
In 2020, the co-founder of an Australian hedge fund was duped into authorizing fraudulent transactions totaling $8.7 million, following a whaling phishing attack that looked like a regular Zoom invitation.
So why are executives, in particular, such an attractive target for phishing? There are a few key reasons.
Access to High-Value Information
An executive is not just another employee at a company. Sure, they likely receive a salary just like everyone else, but their role comes with far greater responsibility, influence, and exposure. As such, they enjoy privileged access to sensitive information and data, along with direct lines of communication with critical stakeholders.
For example, if there is a merger in the works, the CEO or CFO certainly know about it, but a regular employee working in accounting will likely find out only after it’s officially announced. Executives often have the most permissive access to payment systems, database storage systems, HR resources and more.
It’s precisely this high-level access to company secrets, finances, and strategic plans that criminals find attractive.
Authority to Make Decisions
Not only do executives have access to critical information, but they also have the authority to make decisions with significant financial and operational implications.
The combination of access and authority is a double win for cybercriminals, and they can exploit it in two ways: by gaining unauthorized access or knowledge to sensitive information that they can letter sell or ransom or by getting the executive to approve fraudulent actions, such as a wire transfer.
Available Information to Craft Personalized Messages
Since the C-suite is essentially the face of the company, they often engage in various PR activities, whether it’s publishing press releases, appearing in interviews, or posting on social media. Unfortunately, partners and clients aren’t the only ones interested in these communications.
Before launching a whale phishing attack, cybercriminals also diligently study their target’s publicly available information to gather details they can use to craft convincing and highly targeted phishing messages.
Even a single sentence in a random interview can reveal crucial insights that help attackers tailor their scam and increase the likelihood of success.
Busy Schedules Leading to Rash Decisions
Executives are a busy bunch. They typically have meetings throughout the whole day and need to make high-stakes decisions on the fly, without much room for pondering or carefully evaluating every detail.
And that’s exactly what leads to vulnerabilities in their security posture. In the rush to address pressing matters, executives may accidentally click on a malicious link or respond to a sophisticated phishing email that appears legitimate.
But one simple lapse in judgment can cost the company millions, or a reputation that takes years to rebuild.
How to Protect Executives and Organizations
To protect executives and other decision-makers, organizations must implement proactive measures that improve security awareness and provide support in recognizing and blocking phishing emails.
- The best approach to raising security awareness is through regular phishing simulations that replicate real-world tactics in a controlled environment. The simulations should be role-specific, so executives learn the high-level targeted threats they’re most likely to encounter, while other employees receive training tailored to their everyday responsibilities.
- Technical measures will also help, particularly around stopping suspicious emails from getting to the inbox in the first place. Email authentication protocols such as DMARC and DKIM help by verifying the authenticity of email domains, ensuring that spoofed emails don’t make it to user inboxes.
- To limit the risk of financial fraud, organizations should implement multi-level authorization so that someone posing as an executive can’t single-handedly approve high-value or sensitive transactions.
The Role of Cybersecurity Leadership
Strong security leadership on the same level as other executives is also essential for improving the organization’s resilience to phishing.
The security leaders can hold others accountable for their role in minimizing risk for the organization, as well as inform them about the latest threats and best practices.
Ideally, this responsibility lies with a dedicated Chief Information Security Officer (CISO), who can focus exclusively on the organization’s cybersecurity efforts. However, if a formal CISO role does not exist, other tech executives, such as the CTO or CIO can assume these responsibilities.
Conclusion
Cybercriminals are looking for the easiest possible way to gain access to your company’s digital presences. By compromising an executive, they can bypass the layers of technical and operational hurdles that typically stand between them and the organization’s most sensitive data.
It’s important for executives to realize that their position of authority and far-reaching influence makes them the ideal target for phishing scams. Therefore, they must remain vigilant in their approach to dealing with security threats, and be an example for the rest of the workforce.
