Jeffrey Wagner, CEO and founder of Aquilon Energy Services, recently published an article about the dramatic rise in corporate cyberattacks in the form of business email compromise. Recent studies have confirmed that stronger security is a top priority for CFOs and yet a common practice in settlement departments is exposing energy companies to significant risk.
An overlooked security risk in data operations
In spite of spending millions of dollars and countless hours to secure their data, financial execs at leading energy companies have overlooked a vulnerability in their settlement department operations — the common practice of emailing invoices and sensitive financial information.
Here’s the problem
Almost 50 percent of global organizations say they've experienced fraud or economic crime, as reported by the PwC 2018 Survey on Global Economic Crime and Fraud. The truly alarming data point is that this represents a 36 percent increase in fraudulent cyber activity from the previous year.
Email invoice delivery is fraught with risk. With little technical knowledge, hackers can easily exploit email correspondence, sending electronic invoices from what appears to be a trusted counterparty. The banking information and payment instructions, even on a PDF invoice, can be effortlessly changed, defrauding the real counterparty.
3 reasons why emailed invoices pose a security risk
The persistence of manual processes currently used by settlement departments cannot accommodate and secure the ever-increasing volume of data that crosses their desks.
With growing potential for critical data breaches and revenue loss from business email compromise (BEC) attacks, CFOs are appropriately focused on strengthening security. Here are three primary reasons why emailed invoices are an open invitation to hackers:1. A lack of security controls
2. Out-of-date information
3. No audit trail
It’s abundantly clear that email invoice delivery is risky and energy invoicing is in need of a secure solution. Read the complete article and learn how leading energy companies are eliminating the threat of business email compromise.
Aquilon Energy Services Inc. develops innovative software and service solutions for the energy industry. The Aquilon team combines deep industry insights with advanced technology to bring reliable, collaborative solutions to the energy market. The firm’s Energy Settlement Network (ESN®) enables energy participants of all sizes to manage, access and settle large volumes of power, oil and natural gas transactions with their counterparties. The company is based in Lisle, Illinois, and has an office in Houston. For more information, please visit www.aquiloninc.com.