Social Engineering and its Risk Management.

Introduction

Social engineering is a strategy used by hostile persons to mislead and deceive people into disclosing sensitive information, gaining unauthorized access to networks, or doing activities that may compromise security. In order to get over conventional security measures, it makes use of human psychology, trust, and vulnerabilities. Despite the fact that this type of trickery has always existed, information and communication technology have greatly advanced it. 

In this new context, social engineering techniques in the digital world can be viewed from two different perspectives:

1.       Either by utilizing psychological manipulation to get access to an IT system where the scammer's true goal is located, such as by pretending to be someone over the phone and encouraging the target to visit a malicious website that infects the target's workstation, etc.

2.       Or using IT tools as a stepping stone for psychological manipulation strategies to accomplish a goal outside the IT domain, such as using phishing to get banking passwords for stealing the victim's money.

 This article will explore the idea of social engineering, current statistics, most common forms along with the risk and its management.

Current Statistics of Social Engineering are as follows:

 

Two types of social engineering that are very common in the current context are as follows:

1.       Phishing: Phishing is a social engineering attack frequently used to obtain user data, including login credentials and credit card details. It happens when a victim opens an email, instant message, or text message after being tricked into doing so by an attacker posing as a trustworthy source.

The recipient is eventually deceived into clicking an unsafe link, which can result in installing malware or redirection to the same-looking website requesting the user account details resulting in either compromise of the workstation or user accounts.

Vishing: Vishing, often known as voice phishing, is a type of cybercrime where attackers call their victims and obtain their personal information. Vishing attacks are carried out by cybercriminals who utilize social engineering strategies to get their victims to give away personal information in order to access financial accounts.

 

Vishing is very popular in the current context where fraudsters call bank customers pretending to be the bank’s staff and request the account number and OTP for the KYC update. The anatomy of the vishing attack can be seen in the above figure.

Risk and Impact of Social Engineering

It is critical to understand that social engineering effects might go beyond short-term financial losses or data breaches. It is also important to recognize the psychological and emotional impact that social engineering attacks have on the victims, who may feel stressed, anxious, or violated. Some of the risks associated with social engineering with its associated impacts are as follows: 

Information disclosure:

Social engineering attacks frequently seek to obtain people's sensitive information. Personal information, login information, financial information, and confidential company data are examples of this. The following are some dangers and effects of information disclosure:

1. Loss of Sensitive Data: Social engineering attacks may lead to the loss or unintentional disclosure of sensitive data, including property rights or personally identifiable information (PII). This may result in financial fraud, identity theft, or other illegal offenses.
2. Identity Theft: Social engineers can assume someone's identity if they have access to personal information, which allows them to engage in a variety of fraudulent actions. For people, identity theft can have serious financial and reputational repercussions.

Financial Losses:

Social engineering attacks might target specific people or groups in order to make money. Financial loss risks and effects include:

1. Fraudulent Transactions: Social engineers can carry out fraudulent transactions by tricking others into submitting payment information, causing financial losses for both individuals and businesses.
2. Business email compromise (BEC): BEC attacks can be facilitated by social engineering techniques like email spoofing or impersonation. This entails convincing workers to make unlawful wire transfers or reveal financial information, resulting in large financial losses for businesses.

Reputational Damage:

Social engineering attacks have the potential to seriously ruin people's and organizations' reputations. Reputational harm risks and effects include:

1. Loss of Brand and Customer Trust: Successful social engineering attacks have the potential to damage a company's reputation and lose clients. This may result in a loss of clients, missed business prospects, and an adverse image for the brand.
2. Legal and Regulatory Implications: Social engineering violations can have legal and regulatory repercussions in sectors with stringent compliance standards. This covers potential penalties, legal actions, or inquiries into privacy infractions or insufficient security measures.

Risk Management of Social Engineering

Understanding the risks and effects of social engineering shall enable people and organizations to take proactive actions to reduce the weaknesses that social engineering can exploit. Risk management is essential for reducing the risks that social engineering attacks pose. This part covers the most important tactics and procedures that individuals and organizations can use to manage the dangers posed by social engineering.

Security Awareness and Training:

Security awareness and training shall be provided to both employees and customers on a regular basis to educate the employees regarding social engineering and its impact. Customers shall be provided with regular educational materials, blog posts, or FAQs mentioning the relevant topics. Technology cannot protect all the time against social engineering hence awareness is the last mile to fight against it. Awareness shall help users to identify the red flags, report them immediately to the concerned party, and always remain vigilant.

Strong Password Policies:

The organization shall implement strong password policies for both internal and external services provided by it. Using password complexity with a regular rotation of passwords and the feature of two-factor authentication shall add an extra layer of security, making it more difficult for attackers and fraudsters to gain unauthorized access.

Secure IT Infrastructures:

Organization and Individuals shall regularly patch their IT equipment to mitigate the vulnerability that is present which can be exploited through social engineering. Individuals or end users shall always download the application on their mobile phones from a safe and secure store and shall always scan the applications that are not downloaded from known sites.

Vendor and Third-Party Management:

Organizations these days outsource their services to third-party vendors for better service. However, access to third parties can be one of the channels for data loss. Each and every organization shall assess vendors and third parties properly by reviewing the security protocols and procedures followed to access the organization's system or sensitive data. Proper due diligence shall be implemented to reduce risk to external entities.

Fraud Reporting and Response:

The organization shall provide clear reporting channels for customers and employees to report suspicious activities immediately to the concerned department or units. These reporting channels shall be easily accessible and easy to use. The organization shall ensure the reports are promptly analyzed and immediately responded to. Proper guidance with details steps shall be provided to mitigate the potential risk and recover from any losses.

Conclusion

As a persistent and always-changing threat, social engineering takes advantage of human weaknesses to get through technical security measures. It's crucial to keep in mind that social engineering techniques change all the time. A few of the major concerns it brings to persons and enterprises are information leakage, unauthorized access, financial losses, and reputational damage. Individuals and organizations can take proactive actions to reduce the vulnerabilities that social engineering exploits by being aware of these dangers and their effects. To remain ahead of potential risks and maintain a strong defense against social engineering attacks, regular assessment and enhancement of risk management policies, personnel training, and technical controls are crucial.