Phishing scams are at the top of cyber criminals’ moneymaking lists. It’s upsetting that the important data of organizations such as Sony are under threat from phishing scams. But unlike the widespread notion, these scams affect small enterprise owners as much as they affect the big corporations.

The Internet Crime Complaint Center (partners with the FBI) and the National White Collar Crime Center (NW3C) have reported more than 300,000 cases of online phishing scams and other Internet related crimes.

Understanding what phishing is will help you identify what makes your small business so appealing to cyber criminals.

What is phishing?

Phishing is a serious problem, but the term can be a bit unclear. It is the act of illegally trying to obtain private information such as passwords, credit card account numbers, banking account information, usernames, or social security numbers.  Phishing is accomplished by creating fake logos, email addresses, authentic looking official websites, and phone numbers.  Victims are then under the illusion that it is official business and are compelled to give out their private information, which in turn can be used to steal their identity.  Small businesses often suffer from phishing, as the goal is to gain access to their customer’s private information such as credit card account numbers.

Examples of small business phishing scams

Thousands of small business owners have received emails from the IRS informing them that they must fill out W-4 forms or other tax forms, and return them via fax.  These emails look surprisingly real.  Right down to the official IRS government seal.  Unfortunately, many owners are afraid that they are going to be audited by the IRS if they don’t take care of it quickly.

At the official website, IRS.gov, the IRS states that it will not contact companies through email first. Beware and use caution before clicking on a link claiming to be from them.

Your company email can be a target

Thieves can gain access to a business by focusing on a particular individual by sending them deceitful emails that conveys a professionally sincere image. Most of the time these emails will contain a computer virus or malware. It has the ability to infect a company’s entire network, which allows thieves to gain access to confidential data.

Phone phishing

Phone phishing refers to deceitful phone calls where thieves pose as banks and ask for the victim to “verify” account numbers over the phone in order to steal confidential information.

How to protect your business against phishing

The Anti-Phishing Work Group offers wonderful tips on how to keep your small business from becoming a victim of phishing. Here are several of their tips:

• Make sure your employees are aware of what phishing scams are, and are cautious when reading and responding to suspicious emails.  Always err on the side of caution.  Instead of clicking a link, open another browser window and go to the official website.
• Never give out company financial information such as bank routing numbers to an inquiry made via email.  Your bank does not need you to confirm your account information…they already have that. An email like that even if it has your bank’s logo is a fake. Make it a habit to check your accounts regularly for suspicious charges and withdrawals.
• Make sure every computer used has up-to-date virus and malware protection.  Schedule regular full system scans.  Never download “anti-virus” software from an unknown entity. It’s better to stick with trusted brands.

It is nearly impossible for law enforcement to stop phishing, so the best method of defense is the education of your employees for identifying, dealing with, and staying up to date with phishing scam trends.