Page 63 - Cyber Defense eMagazine October 2023

end there. Incidences like these destabilize public trust in the organization's competence to safeguard
sensitive information and shield themselves against cyber threats, leading to strained relationships or
even a potential loss of customers and business opportunities. Additionally, businesses may face legal
and regulatory consequences including penalties; legal battles are never easy.

Reliance on traditional systems and resultant vulnerabilities

Centralized databases, manual processes and paper-based documentation make traditional invoicing
systems more susceptible to cyber attacks, especially today when technology is advancing at an
unprecedented pace, and is being made accessible to everyone- including malicious actors ready to take
advantage of vulnerabilities.

Inherent vulnerabilities of systems aside, cybercriminals are also adept at exploiting human vulnerabilities
through phishing attacks, initiating unauthorized attacks or deceiving individuals into disclosing
confidential information. It’s not surprising how social engineering is a much preferred technique for
fraudsters to entrap their victims. As convenient as email communications are in many business settings,
when it comes to invoicing processes, such modes of communication including manual data entry, make
it easier for fraudsters to manipulate invoices, impersonate legitimate vendors or redirect payments to
fraudulent accounts.

For instance, using techniques such as email spoofing to mimic the email addresses and domains of
trusted entities, hackers send fraudulent invoices that appear to be from legitimate sources. Needless to
say, this leads to unauthorized fund transfers- thanks to altered payment information on the compromised
invoice. Hackers may also intercept the transmission of invoices between the sender and the recipient,
and subsequently alter payment details to modify the invoice during transit.

Sometimes scamsters go a step further and create counterfeit vendor accounts or impersonate trusted
entities while submitting fraudulent invoices to businesses. Unaware of the deceit, organizations may
process these invoices, leading to financial losses and ensuing legal complications. As a case in point,
consider the million dollar scam that cost tech giants like Google and facebook $122 million many years
ago. Fast forward to the beginning of this year and we had the PayPal scam doing rounds.

Blockchain: Safeguarding invoicing processes against fraudulent activities

It’s no surprise that with sophisticated technology becoming increasingly accessible to common man, the
potential for its misuse is also bound to spiral out of control. Take generative AI for example- its ability to
generate humanesque text and multimedia content makes it easier for bad actors to impersonate others
and manipulate sensitive information. However, technology being extremely dynamic, has a solution for
(almost) everything. The area of invoicing is no exception. Enter, blockchain technology.

Blockchain brings a commendable level of tamper-proof integrity to invoicing, by providing an immutable
ledger that meticulously records every transaction. This means that once a transaction is recorded, it
cannot be altered or deleted, making it exceedingly difficult for fraudsters to manipulate invoicing data or

Cyber Defense eMagazine – October 2023 Edition 63
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