The FBI recently warned of an uptick in phishing attacks designed to impersonate government officials. Phishing is becoming more precise and more convincing, with criminals focusing on high-value targets such as IT managers. For enterprise organizations, a dangerous trend called whaling is emerging. It’s critical to know what whaling is and what cybersecurity measures you need to implement in response.
What Does Whaling Mean in Cybersecurity?
In the world of cyber threats, “whales” are high-value targets, usually C-suite executives with connections to the corporation’s financial assets. Whaling attacks attempt to trick CEOs, CFOs, and other senior employees into authorizing payments, but these wire transfers end up in the bank accounts of cybercriminals.
In some cases, the goal is to get the target to reveal valuable organizational data, such as proprietary secrets or sensitive client information. Bad actors can use this data for extortion or sell it on the dark web.
What Is the Difference Between Whaling and Phishing?
Whaling is a type of phishing attack. In fact, this threat is also called whaling phishing. There are more than a dozen variants of cyberattacks related to phishing:
- Vishing: Voice phishing with phone calls and video chats
- Smishing: Phishing attacks that use SMS texts
- Pretexting: A social engineering attack with an elaborate backstory or ruse
- Baiting: Online scams and other reward-based attacks
- Website spoofing: Fake websites designed to steal user login credentials
All of these attacks have similar goals: to convince victims to download malware or ransomware, authorize fraudulent payments, or share usernames and passwords.
Traditional phishing attacks aren’t picky, often going after low-level workers or managers. On the other hand, whaling always targets senior staff (e.g., VP of finance) or corporate executives.
Another key difference is that phishing attacks are usually broad and generalized. Cybercriminals can send hundreds or thousands of messages, knowing that most won’t pan out. With whaling, bad actors target a specific individual.
What Is an Example of Whaling?
Imagine that your organization’s Chief Accounting Officer receives an email from the CEO outlining a new project that is time-sensitive and lucrative. The message tells the CAO to authorize several payments related to the project. The email looks like it comes from the executive’s corporate email account, and it sounds legitimate.
Five minutes later, another email arrives, this time from your legal department. The lead attorney discusses the “project” from a legal perspective and authorizes the CAO to send the required funds.
Does this scam sound too complicated to be effective? Actually, it’s exactly what happened to a Silicon Valley company called Ubiquiti Networks, resulting in losses of over $45 million.
How Does Whaling Phishing Work?
Whaling phishing isn’t a short-term or improvised cyberattack. Criminals often spend weeks or months doing research on the target and preparing a convincing trap.
Spoofed or Real Credentials
Whaling often uses business email compromise, or sending fraudulent emails that impersonate real company employees. Some BEC attacks spoof email accounts to make them seem legitimate, such as accounts related to clients, third-party providers, or well-known brands (e.g., Microsoft or Google). Other times, cybercriminals take over real employee email accounts by stealing credentials.
Convincing Messages
The next step is to send one or more messages to the targeted executive. For example, an email pretending to be from a personal secretary may ask a CEO on a business trip to authorize a credit card transaction. The “secretary” claims she needs to purchase new airline tickets for the CEO because of a supposedly canceled flight.
These days, whaling isn’t limited to the realm of email. With enough source data (just three seconds in some cases), AI can enable bad actors to replicate the voice of trusted employees. As AI deepfakes become more widespread and convincing, video chats can also be an avenue for whaling. In 2024, an employee in the UK authorized a $25 million wire transfer, believing he was in a video call with company executives. In reality, the entire conversation was created using AI.
How Can Your Organization Safeguard Against Whaling Attacks?
Effectively fighting phishing threats requires a combination of technical, cybersecurity, training, and governance initiatives. These defensive measures should be part of any enterprise risk management framework.
Identify High-Value Targets for Whaling Attacks
There’s no reason to let your organization be blindsided by phishing. Perform a detailed risk analysis to determine which executive positions pose the greatest threat in the event of BEC or phishing.
Use State-of-the-Art Communications Security Tools
Antivirus tools can’t prevent all threats from phishing, but they help protect against malware and ransomware infiltration. Enterprises should leverage data loss prevention tools and spoofing detection software for email servers. IT security professionals must set email rules that flag suspicious domains and block prohibited actions, such as activating outbound links.
Create Organizational Policies for Wire Transfers
One of the most effective ways to stop finance-oriented phishing attacks in their tracks is to have strong organizational policies. Place restrictions on wire transfers or purchases that exceed a certain minimum.
At minimum, two executives should sign off on high-value transactions, preferably three. Any truly critical business decisions that affect the company should be made in person, not over the phone or by email.
Obtain Executive Buy-In
Creating procedures is only effective if your organization follows through. Unfortunately, some executives have an “It won’t happen to me” mindset.
One solution is to prepare special training courses for senior management. Assign a C-level executive (CIO, CISO, etc.) to periodically review compliance. Run whale phishing simulations.
Limit Social Media Activity
Unless required by law or by responsibilities (e.g., public relations duties), your organization should follow a zero-trust policy for social media. Senior management and other employees should avoid public sharing of personal data.
Seemingly harmless posts about vacation plans or daily work activities can give cybercriminals the ammunition they need for credible social engineering attacks. Videos are even more dangerous because they contain usable audio.
Learn More About Whaling in Cybersecurity
There’s no one-size-fits-all approach to phishing threats, especially for global organizations. Preventive safeguards must be customized to your company’s risk profile. Understanding what whaling is in cybersecurity is important, but it’s only the first step. Contact us to discover cutting-edge solutions for enterprises.
