Written by Jim Becker and published by the Logistics Journal; This article will be featured in the March issue of the Logistics Journal

Imagine if your small business lost $50,000, money that vanished into thin air. Would your company survive? You might struggle for the short-term, but chances are smaller amounts like these wouldn’t necessarily be a death blow to your company.

Now up the amount to $100,000. Are you starting to sweat at the thought of your company losing six digits worth of revenue? If 100 grand makes you nervous, then you don’t want to entertain the notion of $230,000 leaving your bank account without a trace.

But this is what almost happened to Becker Logistics. In the run-up to Christmas 2011, a very clever and enterprising group of hackers took our telephone and computer infrastructures by storm. With no prior warning, these thieves wasted little time gaining access to our bank account and initiating multiple wire transfers totaling $230,000.

Luckily, we discovered the theft in time, but the most disturbing part of the ordeal was learning how close the hackers had come to robbing us blind. After such a difficult experience, I knew we needed to get the word out to other small business owners, particularly 3PL’s and those in the transportation and logistics sector. Unfortunately, many freight brokers and freight carriers do not know how vulnerable their phone and computer systems really are.

By following the tips below, you can install multiple levels of security that will deter hackers from targeting your company.

1. Work with your phone provider to protect your system.

One of your top priorities should be immediately cancelling call forwarding for your main number. Call forwarding is the perfect invitation to hackers looking for a vulnerable phone line. Because we had our phones arranged to forward calls that came into the main number, the hackers were able to easily intercept existing calls by simply changing the number with our service provider. They were able to field calls for any department within our company, including Accounting, LTL Dispatch, and TL Dispatch, going so far as to negotiate freight quotes if they so chose. They were even able to pose as the real Becker Logistics and lend some authenticity to their dealings with our bank.

2. Avoid easy-to-guess or common passwords.

Too often, business owners will choose passwords that are easy for hackers to break through, such 1234, 5555, or 0000. Once criminals get their hands on your personal information, they can search for other popular passwords, including the last four digits of your Social Security number or your birthday. A good rule of thumb when it comes to pass codes: If it’s hard for you to remember, it will be even harder for thieves to figure out. Come up with a password that is as long as possible and includes a combination of letters and numbers. Keep a copy in a secure place for when you need to refer to it again.

3. Protect your data from internet snoops.

SSL technology (Secure Sockets Layer) has been the mainstay of secure online information transfers since the early days of the worldwide web. However, additional protection has been required to shore up areas where hackers have finally breached the technology. Complementary software is available to cover the weaknesses in SSL and validate every certificate passed through your SSL portal. This has become especially important in the age of wifi hotspots, which leave the usage and habits of customers vulnerable to SSL hacks. If the hacker hits one of your customers while they’re on a wireless network, any information the customer shared with you is left bare for the hacker to do with as they wish. You can’t stop the hacker from attacking your customers, but you can keep them from invading your system based on the data they glean from customer computers.

4. Request safety checks on your accounts.

One of the best ways to stop criminals in their tracks is by requesting safety checks on your accounts. For example, if you’ve deactivated call forwarding and an unknown party calls your provider to reactivate it, the caller should be prompted for a password. If the caller does not know the password, then no changes can be made to your preferences. The same applies to internet access or website hosting accounts. Furthermore, ask your service providers to notify you immediately when someone attempts to make changes to your accounts.

5. Implement a two-tier system for wire transfers.

We were fortunate enough to stop the wire transfers before they made it through, but with the proper security measures there is no reason you have to worry about money leaving your account. For starters, make it a rule with your bank that all transfers must be authorized by at least two people within your company, preferably the Controller and the owner. Additionally, require your bank to call you for authorization on an unlisted number such as a home or cell phone. Be suspicious of wire transfer scams by email. Oftentimes, these emails come with attachments that are really executable files. Once opened, the files phish information from your computer and send it to the hackers.

6. Open a report with the FBI.

If you ever experience fraud or suspect you might have been the target of fraud, do yourself and other small business owners a favor by filing a report with your local FBI office. The FBI is more than willing to assist you whenever needed, and if the information you provide to them proves useful, you might actually help catch hackers before they have a chance to strike at your fellow business owners. Don’t be afraid to make your voice heard.

Corporate America has the tools and resources to monitor outside theft and stop it before it escalates. Small businesses may not have the same kind of budget to combat criminals, but they are far from helpless. Talk to your IT department about safeguarding your SSL portal, call your telephone and internet providers to fortify your systems, and place restrictions on your bank accounts that will send hackers looking elsewhere. A little extra work now can go a long way to ensuring your company and its financials stay secure.

James F. Becker

CEO

Becker Logistics, Inc.

www.BeckerLogistics.com

Blog@BeckerLogistics.com

800 GO BECKER 800.462.3253 ext. 110