Understanding the Risks Posed by Spoofing

In Spoofing, computer hackers act like a person or business that the recipient does not suspect and show themselves. Spoofing is used to perform cyber-attacks and access sensitive data. Spoofing applies to e-mails, websites, and platforms such as IP addresses on the computer. Spoofing is the cause of financial crimes related to criminal activities, so there is money laundering when there is a fraud.


Meaning Of Spoofing


Spoofing related to cybersecurity, online systems is cyber crimes such as gaining the trust of the other party, accessing systems, stealing data, stealing money. Spoofing can be accomplished with different tactics, depending on the hacker's ability to make themselves look like someone else. Spoofers hide contact information to reveal they're true identity so systems do not notice them. Hackers exploit network and system vulnerabilities and steal data to perform malicious activities. In addition, they emulate another user or computer system to bypass certain access controls into corporate networks. There is a variety of spoofing, such as caller ID fraud, URL and GPS fraud, email fraud, text message fraud. Spoofer can occur with every online communication.


Spoofing is not alone an illegal activity, because in some cases they may imitate their contact information, IP addresses, in order to protect their people or corporate identity and obtain some frustrations. In such cases, no criminal action is applied to these individuals and institutions. However, if fraud is carried out to defraud a person or institution, this is illegal. Depending on the severity of the identity attacks, they may be subject to fines and even prison terms. Spoofing can be done in many different ways.


Email Spoofing


The most common form of online spoofing is Email fraud. Spoofers send email to multiple individuals and organizations. E-mail contents often contain promotions or logos of trusted institutions, so individuals or organizations trust when clicking on this email. Email contents sent include attachments of malicious sites. Often, fake banking websites are created and emails are linked to them. As a result, when people click on these emails, they are directed to the fake site where they have to log in, and if they log in, the Spoofers reach their identity information.


In addition, spoofers can use social engineering to convince individuals to freely disclose sensitive identity information. Because if people do not click on these emails and then trust the malicious sites and share information, the efforts of the spoofers will be wasted. While doing this activity, the spoofer targets a small group within the company and sends personalized emails to these individuals.



IP spoofing


Each device that connects to the Internet has an IP address and a string that tells other devices where it is. If the devices used to send information to the internet, this information includes an IP address. The personal data of the device used with the IP address is visible. That's why Spoofers want to be able to hide the IP address of the computer because location etc. information should not be displayed. With IP fraud, it can hide the sender's identity or mimic another computer system. One purpose of IP address spoofing is to gain access to a network that authenticates users' IP addresses.


Many closed networks on the Internet only accept packets in a range of pre-approved IP addresses. This is a security measure that prevents unknown devices from entering. So this activity is an example of an Anti-Spoofing activity. Also, IP fraud is particularly popular for DDoS attacks, in which a hacker overloads a network with incoming traffic. Spoofers can surprise targets with IP counterfeiting by making hacker traffic appear as coming from multiple sources.


Caller ID Spoofing


Spoofers can pretend to come from a specific number in this fraudulent activity and deceive individuals and institutions. These people use certain geographic number codes that are generally trusted when making calls. They tell the people they are looking for from reliable institutions, which can be state authorities. Spoofers' main objectives in these calls are to reach people's passwords, social security numbers, account information, credit card information, and any other sensitive information. In these conversations, Spoofers generally apply social engineering techniques.


Man-in-the-middle (MitM) Spoofing


Free Wi-Fi is available in the local restaurants, hospitals and schools, and people who do not want to end their own secure internet generally trust and connect to these Wi-Fi networks. However, this free and unencrypted Wi-Fi service may not be as secure as expected, hackers can easily infiltrate these networks. This has the perfect layout for Man-in-the-middle (MitM). Criminals prefer people who use this network to redirect funds, access sensitive personal information such as credit card numbers, access to financial sites, etc. Spoofers can use the information they obtain in this way to commit a financial crime and this situation has a negative impact on the person whose information is stolen.


What Is the Connection of Spoofing With Money Laundering?


Spoofers commit crimes by using the information they obtain through spoofing activities they carry out in certain ways. These crimes can be financial crimes. A striking notable example is that criminals can perform a large number of financial transactions on behalf of someone who steals credit card information, this transaction may sometimes be credit, sometimes it may be taking real estate. Sometimes it can be used for a much smaller transaction, for example, to take inventory from an online video game. Criminals are also likely to get caught in these financial transactions because the person whose card information is stolen complains to the necessary institutions. For this, Spoofers wash their earnings with money laundering methods and turn them into clean money.


To give an example of this issue, online video games and inventories taken with stolen credit cards are sold cheaper on the black market and the dirty money is turned into clean money. Income from fraud-related criminal activities needs to be laundered, so there is an important relationship between Spoofing and money laundering. Malicious Spoofing and money laundering is a crime. Many financial institutions have separate units that work to prevent these illegal activities. Organizations can build more collaboration between fraud and AML departments to prevent Spoofer. If institutions protect themselves from a money laundering activity caused by Spoofing, they will not be subject to regulatory penalties, nor will they lose their corporate reputation.


How to Prevent a Spoofing


There are many ways to prevent spoofing, the common name of which is anti-spoofing. For example, safe screening habits should be obtained. Information such as passwords, credit card information, and Social Security number should only be shared on encrypted websites using HTTPS. When an email or phone call is received from any institution and person, this information should not be answered with certainty. Any content seen on the internet should not be clicked, IP addresses, etc. should be checked before the connection is established or without interacting with these sites. There should be no suspicious transactions. In addition, advanced technological solutions such as KYC and AML are used today for Anti-Spoofing activities. Banks can detect that the person who trades with the appropriate identification is actually a Spoofer.








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