Beware of Money Couriers: New Cybercrime Also Affects SMEs

Cybercriminals Find New Way to Defraud SMEs

It's happening again: the methods used by cybercriminals are becoming increasingly sophisticated. The US FBI is warning about a new tactic that can cause significant damage, including within Dutch SMEs. They are using so-called 'money couriers' to collect money from victims of cryptocurrency scams.

This phenomenon, also known as 'pig butchering' or 'romance baiting', is deceptive and can lead to substantial financial losses. It is crucial for you as an entrepreneur to be aware of this threat to protect yourself and your business.

This form of fraud is not new, but the method of money collection is. Previously, money had to be transferred directly through digital channels, which was easier to trace. Now, a physical component is added, complicating investigation efforts.

This is a concerning development that demands extra vigilance. Companies with employees can become unintentionally vulnerable if staff members fall victim to such scams.

How Does the New Scam Work in More Detail?

The fraudsters often start by establishing personal contact, typically via popular dating apps or social media. They build a relationship of trust, often under the guise of a romantic relationship or a promising investment opportunity in cryptocurrency. This trust-building process can take weeks or even months.

The victim is patiently persuaded to invest in a seemingly prosperous crypto platform, which the scammer controls themselves.

Once the victim has invested the money, or even wants to invest more, the scammers come up with the next ingenious plan. They convince the victim that the money needs to be moved soon, often with a fabricated excuse such as a technological update, a change in regulations, or a special discount for quick transfer. The victim is asked to withdraw the money from their bank account and then convert it to cash.

The new, dangerous element is that the victim is asked to hand over that cash to a 'trusted' third party. This third party is the money courier. Sometimes this is offered as a service by the scammer themselves, who claims to send a courier to 'safely' collect and invest the money.

In other cases, the victim, already in financial distress due to prior investments, might be misled into acting as the courier themselves.

What Does This Mean Specifically for SMEs?

For SMEs, there are several ways this new form of fraud can be dangerous. Firstly, your employees can become victims. If an employee faces this scam at home and has to cash out money, it can lead to significant personal financial problems.

This can negatively impact your employee's performance and well-being.

Furthermore, there is a risk that your company becomes directly or indirectly involved. Consider situations where an employee, ostensibly in the company's interest, is prompted to conduct such transactions, or when an employee acts as a courier themselves for personal financial gain or under duress. This can lead to legal issues and reputational damage.

The main point is that this fraud adds a physical component, making it harder to detect than purely online crime. Trust is not only damaged digitally but also in the physical world. It is therefore essential to inform and train your staff on cybersecurity and fraud prevention.

What steps can you take?

• Inform your staff: Organize training sessions on the dangers of online fraud, including the 'pig butchering' method. Explain how scammers gain trust and what red flags they should recognize.
• Be critical of investment proposals: Both personally and professionally, be very skeptical of quick and unrealistic profits, especially in the crypto world.
• Do not hand over cash: This is a huge red flag. Explain to your staff that handing over cash to strangers, or even to supposedly 'trustworthy' couriers, rarely has a legitimate reason.
• Verify identity: If a courier is being sent, this is extremely suspicious. Encourage always verifying the identity of a third party before any transaction takes place.
• Ensure a safe reporting policy: Make it easy and safe for employees to report suspicious situations or incidents without fear of reprisals.

Conclusion

The new method of fraud involving money couriers is a worrying evolution in the world of cybercrime. It makes the scams more tangible and harder to trace. For SMEs, it is important to be vigilant, inform your employees well, and follow clear procedures for financial transactions and suspicious proposals.

By acting proactively, you reduce the chance that you or your employees become victims of these cunning practices. Remain patient, critical, and continuously inform yourself and your team about new threats.

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