The lover’s tale
Abigail thinks she’s in love. It must be love. She’s been looking for love for a while and Elliot seems like the perfect guy. Many of her friends have warned her about internet romances but Elliot’s different. He has never asked her for money. Never asked her for anything. She thinks he might be quite wealthy in fact. He is always moving money around. He’s been struggling lately though. So, she’s been helping him transfer money to his accounts. For some reason, he’s having issues sending money over to his overseas account. Abigail doesn’t really know the reasons why, nor does she question it. It all seems too complicated, and as long as it’s not her money she’s transferring over, it must be okay… besides he’s committed to the relationship. He said they will be together soon.
Over the past couple of weeks Abigail’s been transferring money for Elliot’s family or friends. They are all preparing for a big holiday and need the money ready to meet them. It’s not much – a couple of hundred here and there. Now he’s asked for her help to transfer funds from the sale of his property in Australia.
Just a few days ago, Abigail received $250,000 to her account. She’s not meant to transfer everything over to him though. Elliot told her that while he was excited to have sold his house, he needs to move the money in parts to avoid government taxes. He’s asked her to transfer just under $10,000 at a time, over several days, because that way it doesn’t trigger any alerts. Abigail doesn’t completely understand the reasoning, but Elliot is good to her. He said they will meet face-to-face now that he has sold his house, and she is excited to finally put a face to her love.
For the third day in a row she has made the transfer. Something strange has happened though, all her accounts have now been frozen, and her bank keeps leaving messages to call them back.
The practitioner’s tale
Meanwhile your client, Grace, is frantic. She hasn’t received her house’s sale proceeds yet. It’s been a couple of days; how has this happened? You arranged the transfer of the money according to her instructions which you received just before finalising the payment. You look back at the details and see the account name Abigail King and a different BSB – not your client’s.
Wait. What’s happening?
Going back through the email trail you realise that there’s something funny about the email address. The instruction did not come from Grace. Blood drains from your face… you call the bank immediately to try and stop the funds from disappearing. Hopefully it’s not too late.
The Hacker’s tale
Meanwhile, Elliot is busy moving money around several of his accounts across the world and connecting with different people online. While he’s looking for a way to gain access to steal the funds, he has also been cultivating internet romances with men and women to transfer the funds outside of Australia. He loves living in the internet era where crimes can be performed anonymously, and no-one ever has to see his face. On the internet you can pretend to be whoever you want, and a lot of people believe you.
Unfortunately, the above scenario is all too common. Cyber criminals often use middlemen to transfer stolen money to their accounts. These middlemen are real people, with real accounts and they don’t have unusual bank account activity. Known as money mules, they are sometimes recruited or deceived into helping cyber criminals carry out these crimes. Offenders like our fictious character Elliot.
These criminals have been known to recruit money mules via romance scams or employment scams. In a romance scam, the ‘money mule’ is emotionally invested and could also be considered a victim. Employment scams often offer potential money mules a job that requires minimal effort with lucrative returns – for instance, a small commission for receiving and transferring money.
According to the Australian Federal Police , it is a crime to transact in the movement of stolen funds, even if you are unware that you are acting as a money mule. Money mules are caught because they are not trying to hide their activities, and when caught, they can have their entire bank accounts, including their own funds, suspended and potentially face criminal prosecution.
How can I protect myself?
Be wary of advertisements for a guaranteed income or job with lucrative returns and very little effort
Don’t transfer money on behalf of someone else, especially when you have never met them
Never give your bank details to anyone
Protect your personal information and be suspicious if anyone asks you for those details
Be cautious of people seeking financial assistance or asking you for financial details – money sent via wire transfer is rarely recoverable
As a business operator, when receiving instructions to transfer money, confirm that the instructions you’ve received have come from your client - verbally confirm details or changes with your client
Be cautious of situations where the name on the account differs from that of your customer
I think I am a victim, what can I do?
Anyone who has disclosed their bank account details, received funds into their account or suspect that they are a victim of a mule scam should contact their bank or financial institution immediately.
For more information on this and more, please refer to Scam Watch
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Just got back from an awesome vacation, and yes, my cape is always on…
To address your questions, firstly, phone cloning is about having access to the phone and duplicating the SIM card. The likelihood of this happening, although possible, is considered relatively low. Because MFA is something you know and have, you would still need to know other information besides that gained from the cloned SIM card.
Also, offering practitioners the ability to choose their own PEXA name is part of our technology roadmap.
Today, what we have is MFA at login. Our teams are actively working on additional security validations that will be rolled out in the future. For example, cyber security, as we know it today, relates to three elements: something you know, for example your password, something you have, for instance, your phone, and something you are, biometrics. Our goal is to drive towards a seamless experience, and very much like Microsoft and Google, only ask for your validation when the three elements don’t match up.
On our secure digital communication… that’s a great question. However, I’m unable to provide more details here – you’ll have to wait for the announcement and I have a feeling that you’ll be excited at what’s to come. I’m looking forward to answering your questions then!
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Story one | Shhh! Someone's listening...
An uninvited guest, Elliot, has inserted himself into your conversation. You are sitting at a coffee shop having a chat with your client Grace, and unbeknownst to you, Elliot, at the next table is virtually listening to your entire conversation. This unwanted guest eavesdrops the conversation with your client and gathers all their critical information. When you leave the table, he continues the conversation with your client pretending to be you.
I know what you’re thinking - this would not be possible face-to-face. Your client, Grace, knows what you look like, what you sound like. But what if I told you that this is not improbable at all… this is happening online today.
This seemingly far-fetched scenario is a very real cyber-attack method, aptly called man-in-the-middle (MITM). The hacker, in this instance, Elliot, effectively intercepts your conversation, places himself in the middle and conveys the information he wants to pass on to both sides.
How could this happen?
Hackers like Elliot use various methods to gain access to your computer systems. Elliot may have used a phishing scam, or capitalised on poorly secured Wi-Fi routers, often found in public areas with free hotspots. His goal is to obtain your password and access your email account. The current statistics show an increase of 80% in hacks performed through an email compromise.
Changing your password may not be enough
Once Elliot has got into your system, he can create a rule that automatically forwards your emails to a secondary account. This means that any email you receive is also sent to his email account. Using further filtering with key words, he only needs to monitor what he deems as relevant emails. So, even if you regularly change your email password, in this scenario, the hacker still has access to your emails.
How does it work?
With access to your emails, Elliot then uses the information he has obtained, and, mimicking your email style, he can begin a new conversation as you, with your client, Grace. With valuable context acquired, the hacker then impersonates Grace, responding to your emails.
Once he has obtained the information required, he then exits the conversation. You and your client, Grace, are none the wiser, until that is, you realise you are a victim of a scam. By then, money has exchanged hands and you may or may not be able to recover missing funds.
What can you do to protect against a MITM attack?
Be aware of potential phishing emails. They could appear to be from a trusted source, masked as from your family, friends or even your bank. Instead of clicking on the link, type the website address into your browser.
Moving your mouse over the link will show the website name. If the name doesn’t look like the site, don’t click on it.
Use secure Wi-Fi networks, or if using public networks, connect with a virtual private network (VPN)
Ensure you have a comprehensive internet security solution . An interesting article on this topic can be found here .
I think I am a victim, what can I do?
If you suspect that you’re a victim of a scam:
Change your passwords to be unique on all of your systems.
Check if there are any forwarding rules in your email account, and if found:
Record the email address being forwarded to
Confirm no-one in your organisation created this rule
Have your team check their email accounts for forwarding emails and reset their passwords too
Inform your clients by telephone and verbally reconfirm all details, especially bank account details
Delete the rule
If this has impacted your PEXA business, inform PEXA Security alias – firstname.lastname@example.org . PEXA is working with Law Enforcement to identify these types of behaviours and any information you provide could help in the tracking and potential capture of those involved in cyber-crime.
Multi-factor authentication (MFA) provides an additional level of security to access your PEXA Workspace. The levels include your PEXA account name, password, your MFA token, and your digital signing token and pin. However, you still need to be vigilant when it comes to communicating with your client. Soon, PEXA will introduce a new app that will allow your clients to input financial data directly into the Workspace and enable you to request and receive information from your clients securely. [Stay tuned]
As our world becomes more and more connected online, it’s important to be aware of the cyber threats that could compromise the security of your personal information and business operations. Cyber criminals have a low cost of entry into criminal activities and they often have the anonymity to avoid detection. With many targets they will usually go for the easiest person to scam so stay informed and be aware. Collectively, we are better together, as we work as one to reduce the threat of cyber-crime and stay smart online.
By Craig Brown, Head of PEXA Security
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The team at PEXA continues to explore techniques and technologies to align with the ever-changing security landscape. Below is an update on current security initiatives happening on the PEXA platform including our insights into a topical security concern – phone porting.
In September, multi-factor authentication (MFA) was rolled out to PEXA members. MFA requires the user to provide two or more types of evidence to verify their identity when logging in to an account or completing a transaction. This includes a password and unique authentication code which regularly changes. Members choose to receive an authentication code by SMS, the PingID mobile app, or the PingID desktop app.
MFA was added as another layer of authentication on top of digitally signing . Members with the relevant authority must digitally sign-off transactions with their unique [bespoke] digital signing token and PIN, confirming that all details are correct prior to the transfer of funds.
More than verification
Additionally, we initiated the following measures to boost the protection of members while transacting online:
Increased monitoring of unusual activity surrounding password resets, new user creations and changes to BSB and account numbers. If such activity is detected by PEXA, a member of PEXA’s team will contact members to confirm that the activity is legitimate.
Machine learning algorithms to detect behavioural anomalies on a per user basis. If the behavioural pattern of a user changes, PEXA’s risk profiling mechanism is activated to trigger an alert. The member will then be promptly contacted by PEXA’s Security team.
Workspace time stamps and summary screen so that members can see when the Financial Settlement Schedule was last updated and by which user.
A current concern from industry is the possibility of phone porting – a situation where a scammer uses your personal details to port your mobile number from one provider to another, therefore accessing further personal details.
With a suite of security measures in place to protect PEXA members and your clients, and lawyers and conveyancers continuing to practice their due diligence, the
small percentage of members who have chosen to receive their authentication code via SMS should not be alarmed.
It is important to note that for phone porting to occur, the scammer would require several pieces of a user’s ID, as well as the ability to convince a service provider to transfer the SIM details from one telco to another. Therefore, not only would the scammer need to know the targeted user’s personal information, they would also need to know if that user has chosen SMS as the preferred method.
To assist in preventing this from happening, I advise members to remain vigilant of people calling, emailing and requesting personal details.
If you have any questions about this information, please don’t hesitate to reply below.
Craig Brown Head of PEXA Security
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This checklist will help you protect your identity and the integrity of the network when using your PEXA login credentials and Digital Certificate to electronically sign in PEXA.
Following the steps below will help you remain compliant with your professional obligations, and those set out in the Model Participation Rules which govern your use of PEXA. Non-compliance with these obligations may result in the Registrar of Titles in your jurisdiction instructing PEXA to suspend or terminate your access to the network.
Ensure you are the only person who knows your PEXA password
Upon registering with PEXA, unique credentials are provided to an organisation’s nominated Subscriber Manager. If required, the Subscriber Manager can then create individual user profiles with unique login details for additional employees within their organisation. Employees should never share User IDs or password login details for PEXA.
Select different passwords for your email, desktop access and PEXA
Using the same password across multiple log in channels is risky - if one was compromised, then all could be compromised. Strong passwords have a minimum of 10 characters and use a mix of uppercase and lowercase letters, numbers and special characters like !, &, and *. # (Using a special character in your password will increase the difficulty of breaking it significantly).
Ensure each employee required to sign documents and authorise funds in PEXA has their own Digital Certificate
Every Subscriber is required to obtain and maintain at least one Digital Certificate. The number required will depend on how many people will be signing on behalf of the organisation. Digital Certificates are assigned to an individual – when used to digitally sign, both the signer and organisation are clearly identifiable. If your Digital Certificate is shared within your firm and misused in a PEXA transaction, you will be identifiable as the signer.
Ensure no one else has access to your Digital Certificate and PIN
Your Digital Certificate is your unique, binding electronic signature. If a digitally signed document in a PEXA transaction is called into question, and it is suggested that the owner of the Digital Certificate was not the person who applied it, your professional reputation and ability to claim on your professional indemnity insurance could be impacted. Whenever your digital signature is applied in PEXA, it is taken to be signed by you and is binding, similar to a ‘wet’ signature. It is important to check documents and the Financial Settlement Schedule prior to signing. Should someone other than the owner of a Digital Certificate use it to sign in PEXA, it may be considered the equivalent of forging a ‘wet’ signature. We suggest you do not leave it inserted in your computer, and instead consider locking it away and ensure secure storage provisions are available for all employees with a Digital Certificate.
Plan ahead to ensure your business has sufficient coverage to sign in PEXA
Consider how many people in your organisation may be required to digitally sign in PEXA and arrange Digital Certificates for each unique user. When managing operations, you may need to account for staff leave, those who are frequently out of the office, and ensuring there are enough people present who are trained and authorised to sign in PEXA.
Know what to do if you or a staff member move on to a new job
A Digital Certificate identifies both you and the firm, therefore cannot be taken by the owner to a new job. A new Digital Certificate will need to be ordered by their new employer. In these circumstances, Digital Certificates must be cancelled by calling the PEXA Support Centre on 1300 084 515.
Multi-factor authentication (MFA)
MFA is utilised to confirm that the person logging in to PEXA is the person who owns the profile being used, and not someone else. MFA requires the user to provide two or more types of evidence to verify their identity when logging in to an account or completing a transaction. As MFA requires the owner of the profile to pair their mobile phone, logging in requires the user to have their device on them, enabling them to receive their authentication code by SMS or the PingID app directly. It’s important to note that each Subscriber will be required to authenticate with their own device every 12 hours.
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