In today’s business environment, trust is essential. Unfortunately, it’s also what fraudsters target first. One of the fastest-growing threats facing businesses involves spoofed communications and online account takeover scams. These attacks don’t rely on hacking systems; they rely on convincing people. And they’re working.

Why This Threat Is Growing

Spoofing and account takeover scams have become more sophisticated and increasingly common:

• 79% of organizations were victims of payment fraud attacks or attempts in 2024
• 83% experienced email spoofing attempts in 2023
• 67% of small businesses report at least one spoofing attempt each quarter
• The average financial loss from a successful incident ranges from $125,000 to $175,000
• Recovery can take three to six months for significantly impacted businesses

These aren’t just technology issues; they’re operational risks that can disrupt cash flow, damage reputations, and stall growth.

How Spoofing and Account Takeover Attacks Work

Spoofing and account takeover often happen together.

Spoofing occurs when a fraudster disguises a call, email, or message to appear as though it’s coming from a trusted source — a bank, vendor, colleague, or service provider. Caller ID spoofing can make a phone call appear to come from a legitimate business number. Email spoofing can mimic trusted domains with subtle variations that are easy to miss.

Once trust is established, the attack escalates.

A Common Attack Pattern — and Where Even the Savviest Businesses Get Tricked

In just a few steps, fraudsters can gain control of a business account:

1. Initial contact
A fraudster calls or emails pretending to represent a trusted organization, often using real employee names or publicly available information.

2. Creating urgency
They claim there’s suspicious activity, a system issue, or an urgent update required to prevent disruption.

3. The moment that feels routine — but isn’t
This is where many businesses are caught off guard.

The caller explains that they need to “verify your identity” and says a code will be sent to your mobile phone. They may pause the conversation to “follow procedure,” lending credibility to the request.

At the same time, the fraudster is attempting to log in to your online banking or financial system. That action triggers a legitimate multi-factor authentication (MFA) or secure access code to be sent to your phone.

Because the timing aligns perfectly with what the caller described, the message appears to confirm their story. Believing the bank initiated the verification, the victim shares the code.

In reality, that code was never meant to be shared — and doing so gives the fraudster access.

Legitimate financial institutions will never ask for MFA or one-time security codes over the phone, text, or email.

4. Account takeover
Once inside the account, fraudsters may change passwords, recovery details, phone numbers, or user permissions.

5. Financial manipulation
They can initiate wire transfers, ACH payments, or alter payment instructions — often before the activity is noticed.

Red Flags Every Business Should Know

Awareness is your first and most effective line of defense.

Communication Red Flags

• Caller ID or email addresses that appear legitimate but contain small inconsistencies
• Slight domain changes (extra characters or swapped letters)
• Urgent or threatening language demanding immediate action
• Requests for sensitive information via phone, text, or email

Account Activity Red Flags

• Unexpected password reset notifications
• Login attempts from unfamiliar locations or devices
• Activity outside normal business hours
• Sudden changes to user roles, permissions, or contact information

If something feels off, pause. Fraudsters rely on urgency to override caution.

Practical Steps to Protect Your Business

Strong protection doesn’t mean complicated protection — it means layered safeguards.

Strengthen Your Technology

• Enable MFA on all critical systems
• Implement SPF, DKIM, and DMARC email authentication
• Use real-time account activity alerts

Limit Access

• Assign role-based permissions
• Require multi-step verification for payment changes
• Review user access regularly

Train Your Team

• Verify unexpected requests through trusted channels
• Establish a formal verification process
• Reinforce one critical rule: never share MFA codes

Vigilance Is a Business Advantage

Spoofing and account takeover scams aren’t just cybersecurity issues — they’re business continuity risks. The most resilient organizations aren’t those that assume they won’t be targeted; they’re the ones that prepare as if they will be.

At Northern Bank, protecting your business means more than providing financial services. It means helping you recognize threats early, strengthen defenses, and respond with confidence.

You can always send questions and concerns to SecurityMatters@NBTC.com for any information security-related questions.