The rise of social engineering and the cost of personal devices: A security perspective

Many potential weak links and vulnerabilities can be exploited in business settings, whether in microenterprises, medium-sized companies or large corporations. Some weak links require a high level of technical knowledge to detect, making them difficult to protect against attacks. Others, however, are easily exploited and often overlooked, presenting low-hanging fruit for threat actors.

Unfortunately, in the latter case, humans are an ever-present weakness that can be easily exploited, unwittingly exposing enterprises to risks—whether it is by fraudsters targeting them mercilessly with sophisticated scams, such as smishing and robocall attacks, or because employees are simply bypassing security tools to optimize their work. In today’s remote/hybrid corporate world, BYOD policies are more widely implemented to boost employee productivity and reduce hardware costs, although both of those reasons may not always hold true in practice. While BYOD may bring these benefits, it also potentially carries a significant cyber risk.
 

Social engineering: Smarter and more dangerous

With the increasing sophistication of social engineering (and today with the use of artificial intelligence [AI] and deep fakes to create highly convincing voice impersonations), even the savviest users can have difficulty detecting these attack schemes.

Scammers will typically seek out the weakest link in an organization, which often is the human element—such as disgruntled employees, lost personal devices used for work or executives who think they are communicating with someone they know. Wherever your weak link lies, there is a prime opportunity for threat actors to gain access through phishing (email/messaging), vishing (phone/voice) or smishing (text/Short Message Service [SMS]) attacks. For instance, a global ride-sharing company’s network was compromised in late 2022 when an attacker targeted a contractor who was using a personal device. After the device was infected with malware, the threat actor bought the contractor’s corporate password on the dark web. After repeatedly rejecting multifactor authentication requests, the contractor eventually accepted a request, allowing the threat actor to gain network entry.¹

As another example, one of the world’s largest media and entertainment companies recently had to shut down its computer systems for 10 days² after it appeared that hackers successfully impersonated an employee and convinced the IT help desk to obtain the user’s credentials to access and infect the system. Just through some basic online research on social media, the hackers seemingly managed to eventually take control of a multibillion-dollar company’s computer systems. If these types of attacks and scenarios can happen to global brands with nearly limitless resources, what does that say for midmarket organizations?

With such a high level of network access, threat actors have a great deal of leverage, ready to demand a ransom or go straight to disclosing or selling your sensitive data on the dark web. Breaches of this nature can also significantly damage your brand reputation, translating to potential drops in share prices and the possible alienation of consumers with data privacy concerns.
 

Corporate usage of personal devices is proving costly.

Enterprises must also contend with the fact that humans have the natural inclination to make their lives as easy as possible, always looking to simplify and streamline operations. This inclination has translated into the growing use of personal devices, which can present a dangerous risk to enterprises as they lose visibility and control not just over business processes but also over corporate security. This risk is not always created maliciously by the employee. Instead, it simply reflects a very human impulse to get things done in a convenient and timely fashion. While there are potential advantages of using personal devices in terms of business productivity, their use can nonetheless compromise the integrity of the work environment. Most worryingly, they can lead to regulatory compliance failures and expose the enterprise to financial liability.

This is similar to what happened recently in several high-profile cases in the U.S. financial services industry, which came to light in 2021. A number of large financial services providers were heavily fined (from US$10 million to more than US$100 million each) by federal agencies such as the U.S. Securities and Exchange Commission (SEC) for improper policing of employees’ use of off-channel messaging services and for failing to maintain and preserve all official communications by their employees. The fallout was costly, both from a reputation and financial standpoint.

The human risk factor cannot be understated. As so many unfortunate tales making recent news headlines highlight, the digital landscape is fraught with danger and risks. The challenge for enterprises now is to constantly manage both attacks and device misuse while minimizing the potential blast radius on business operations.

Regulated industries in the crosshairs

Verizon has been working to enhance security for enterprise customers across various sectors. Notable work comes in helping defend organizations in heavily regulated spaces such as financial services that face growing challenges from two fronts: stricter regulatory pressure and increasingly complex social engineering attacks. At a minimum, corporate devices are a requirement for regulated companies. Using personal devices without recordkeeping software carries heavy legal and financial consequences for regulated organizations, as noted earlier.

In the United States alone, more than US$1.5 billion in penalties have been racked up since the SEC started investigating recordkeeping tactics at financial institutions.⁶ That includes 16 Wall Street firms that were fined US$1.8 billion for allowing employees to discuss deals and trades on personal devices via text messages/WhatsApp.⁷ As useful as mobile device management (MDM) software may be in curbing cyber threats, personal devices still carry significant risks; it’s still up to the end user to remember to maintain the security posture.

Corporate devices have security benefits you cannot get with BYOD. Swapping personal devices for corporate-issued ones can allow IT staff to gain a better grip not just on internal/external communications but also on various integrity and security aspects of mobile devices. When organizations offer corporate-liable devices from Verizon, they are gaining enhanced security protections and controls not available on personal devices.

This can help to address common vulnerabilities for organizations. For example, when trying to comply with regulators, many companies are contenting with high levels of robocalls. Unfortunately for banks, robocalls have become tougher to detect because threat actors use advanced deep fake technologies to recreate synthetic speeches, allowing them to impersonate banking customers.

Among the Verizon solutions that can be used to counter such attacks are compliant calling, voice authentication and defense solutions.

Financial services are not the only regulated organizations under intensive attack. Healthcare providers are also being targeted by opportunist social engineers, with fraudsters focusing on employees similarly through smishing and vishing attacks. Third-party, low-quality internet service providers (ISPs) may sometimes provide numbers to threat actors, who subsequently use the numbers to conduct targeted attacks against those employees.

Organizations can take a proactive perspective, as Verizon offers executive protection services. Our threat hunting team can scour the dark web and help remove personally identifiable information (PII)—such as email addresses, phone numbers and physical addresses—about high-level employees that can be used to target them (and their family and social circles) in social engineering attacks.
 

Implementing a comprehensive defense plan

The first step any business must take in defending its network from social engineering attacks is to understand the nature of the cyber risks being faced. An outline should be created to establish a clear understanding of how to mitigate, minimize, transfer or accept the identified risks. This risk assessment is a critical step because it allows you to identify your assets, threat entities and risk appetite. From there, putting together a comprehensive defense plan becomes much easier because you know what your security goals are and what red flags to look out for.

A defense plan against social engineering attacks comprises two main functions: threat detection and trust enforcement. Both functions apply equally to help detect and counter high-level threats and low-level vulnerabilities.

Threat detection is a cybersecurity discipline that focuses on identifying and dealing with threats such as cyberattacks, compromises, data breaches and incidents once they occur. This is done by spotting and helping stop unauthorized access, malware, social engineering schemes, etc. Trust enforcement is all about getting out in front of potential attacks by leveraging techniques such as identity management, passwords, encryption, access control, authentication, etc. Both of these functions form the bedrock of a broader defense plan against social engineering attacks that protect networks, applications, devices and identities.

Verizon provides both of these functions in five key areas of control: awareness training, mobile security policy, security protection controls, detection and response, and monitoring and testing across devices, applications, identities and networks.
 

Social engineering defense plan recommendations