The Rising Menace: Brand Impersonation Scams Soar in Middle East & Africa

Fake and Scam Websites on the Rise in Middle East and Africa

Increasing Instances of Brand Impersonation Scams

According to a recent study conducted by cybersecurity firm Group-IB, the number of detected fake and scam websites pretending to be reputable brands from the Middle East and Africa increased by 135% in the past year. The research also found a 162% increase of brand impersonation scam detections overall in the region. Brand impersonation scams differ from phishing attacks, as they involve cybercriminals deceiving victims into voluntarily providing money or sensitive information rather than stealing personal data unknowingly.

Sharef Hlal, the head of Group-IB’s Digital Risk Protection Analytics Team, highlights that while the Middle East and Africa experienced a significant scam uptick, it was lower than the Asia-Pacific region, where brand impersonation scams rose by 211% in 2022.

Tactics Used by Scammers and Financial Impact

Scammers are resorting to a range of tactics to reach potential victims and evade countermeasures. The study found that scammers heavily rely on a myriad of domains and social media accounts. One particular scam-as-a-service affiliate program called Classiscam has seen notable growth. Group-IB has identified 1,366 Classiscam groups, emulating 251 brands from 79 countries. The financial damage from this scam scheme alone is estimated to amount to at least $64 million.

Furthermore, the study reveals a rapid increase in the number of scam resources hosted on the .tk domain, belonging to Tokelau, a territory of New Zealand. The .tk domain does not charge for registering websites, making it a convenient choice for scammers. In fact, 38.8% of all scam resources examined by Group-IB in the second half of 2022 were hosted on the .tk domain.

Hlal explains that scammers primarily create fake websites, which they then promote through social media. To expand their reach, scammers can create numerous fake accounts that publish sponsored posts. According to Group-IB, 92% of scams impersonating companies in the Middle East and Africa utilized social media, showcasing an increase from 80% in 2021.

Impacted Industries: Finance, Telecommunications, Logistics, and Oil & Gas

Group-IB’s research found that scammers targeted brands from various sectors across the Middle East and Africa. The finance industry was the most affected, accounting for 74.2% of intellectual property violations. These violations include illegal use of trademarks, misrepresentation of brand partnerships, scam advertising, fake social media and messenger accounts, and fake brand applications.

Comprehensive data from Group-IB’s “2022 Global State of Scams Report,” which was published in collaboration with the Global Anti Scam Alliance and ScamAdviser, reveals that scams worldwide caused over $55 billion in damages last year.

Cybersecurity Risks in the Middle East and Africa

The Growing Threat Landscape

The surge in brand impersonation scams in the Middle East and Africa highlights the growing threat landscape in the region. Cybercriminals are increasingly leveraging the internet’s anonymity to exploit unsuspecting individuals and organizations. With the increasing reliance on digital platforms for business operations and communications, it is crucial to understand the risks associated with internet security.

The Importance of Internet Security

Internet security plays a pivotal role in protecting individuals and organizations from cyber threats. It involves implementing measures to secure devices, networks, and data from unauthorized access, data breaches, and other malicious activities. In the face of rising brand impersonation scams, it is essential to adopt robust internet security practices.

Protecting Against Brand Impersonation Scams

To mitigate the risk of falling victim to brand impersonation scams, individuals and businesses can take several proactive steps:

1. Stay informed: Stay updated on the latest tactics used by scammers and the industries that are most targeted. Regularly scan news sources, credible reports, and advisory warnings to gain insights into emerging threats.

2. Verify website authenticity: Before making any transactions or providing sensitive information, verify the authenticity of websites by checking the URL, SSL certificate, and reviewing user reviews or professional reports.

3. Be cautious on social media: Exercise caution while engaging with posts, comments, or messages from unknown or suspicious accounts. Scrutinize the content and verify the legitimacy of the account before sharing personal or financial information.

4. Implement secure browsing habits: Ensure that all devices are updated with the latest security patches and utilize secure browsing methods, such as HTTPS encryption. Use reputable antivirus software and firewalls to provide an additional layer of protection.

5. Educate employees: Provide cybersecurity training to employees, emphasizing the risks associated with brand impersonation scams. Encourage them to exercise caution and report any suspicious emails, messages, or websites.

6. Report incidents: If you encounter a brand impersonation scam or suspect fraudulent activity, report it to the relevant authorities or cybersecurity organizations. By doing so, you contribute to raising awareness and preventing further scams.

Conclusion

The rise in brand impersonation scams in the Middle East and Africa underscores the urgent need for enhanced internet security measures. As cybercriminals continue to evolve their tactics, individuals and organizations must stay vigilant and implement robust cybersecurity practices. By raising awareness, staying informed, and adopting secure browsing habits, we can collectively combat the growing threat landscape and protect ourselves from falling victim to brand impersonation scams.