Finance glossary

What Is Spoofing?

Bristol James
6 Min

Spoofing is a type of cybercrime in which attackers disguise their identity by falsifying information to appear as someone else, typically a trusted entity. The goal is to deceive the victim into interacting with the malicious source or providing sensitive information such as passwords, credit card numbers, or personal data. Spoofing can take many forms, including email spoofing, caller ID spoofing, and website spoofing, and it’s often used with phishing attacks or other social engineering tactics to gain unauthorized access to data or financial accounts.

Understanding Spoofing

Spoofing relies on the ability to manipulate certain aspects of communication or online interactions to mislead a target. Attackers can forge email headers, change IP addresses, or even manipulate website URLs to make their fraudulent efforts look authentic. This deceptive approach often tricks individuals or businesses into trusting the spoofed entity, making them more likely to hand over confidential information or take actions that compromise their security.

Spoofing often involves exploiting the fact that most users rely on visual or superficial cues when determining if a communication is legitimate. For example, if an email looks like it’s from a familiar contact, recipients may not examine the actual email address or other suspicious elements in detail. This can lead to severe consequences such as identity theft, unauthorized transactions, or data breaches.

How Spoofing Works

There are many types of spoofing, and each type works in a unique way to deceive its targets. For instance, in email spoofing, attackers manipulate the email header to make messages appear as if they’re sent from a legitimate source, such as a bank or business partner. This tactic often tricks recipients into providing sensitive information, such as passwords or financial details, under the false belief that they are interacting with a trusted entity.

Caller ID spoofing is another variation, where attackers disguise their phone number to make it seem as though the call is from a recognized organization, like a local authority or reputable company. Once the victim answers, the attacker takes advantage of this false trust to gather personal or financial information.

In website spoofing, fraudsters create nearly identical copies of legitimate websites, such as online banking or retail sites. When users visit these fake sites and enter their credentials or payment details, the attackers capture the information for fraudulent use. 

Each of these spoofing tactics is designed to exploit trust in different ways, but they all aim to deceive victims into giving up valuable information.

Types of Spoofing

There are several types of spoofing that individuals and organizations should be aware of. Each method has different characteristics, but the main goal is the same: to deceive the victim. Let’s go over the main types of spoofing:

1. Email spoofing

Email spoofing involves sending an email with a forged sender address. Attackers often craft messages that look like they come from a reputable source, such as a trusted business or colleague. These emails may include malicious attachments or links designed to steal sensitive information or install malware on the victim’s device.

2. Caller ID spoofing

Caller ID spoofing occurs when attackers manipulate the phone network to display a trusted number on the recipient’s caller ID. Scammers use this technique to impersonate government agencies, financial institutions, or even family members to gain the victim’s trust and collect sensitive data.

3. Website spoofing

Website spoofing is when a fraudulent website is created to mimic a legitimate one. The spoofed website may be indistinguishable from the real one, and attackers use these sites to trick users into entering personal details, passwords, or payment information.

4. IP spoofing

IP spoofing involves attackers disguising their computer’s IP address to impersonate another device online. This is often used in Distributed Denial of Service (DDoS) attacks, where large volumes of traffic are directed at a network to overwhelm it, making the target inaccessible.

5. GPS spoofing

GPS spoofing occurs when attackers broadcast fake GPS signals to deceive a GPS receiver into providing incorrect location information. This type of spoofing can be used to mislead individuals or automated systems that rely on GPS for navigation or tracking.

6. DNS spoofing

DNS (Domain Name System) spoofing, also known as DNS cache poisoning, happens when attackers alter DNS records to redirect traffic from a legitimate website to a fraudulent one. This method is often used to gather sensitive information like login credentials or credit card details.

Spoofing Red Flags

Recognizing the warning signs of spoofing is crucial for protecting against potential attacks. While spoofing tactics are becoming more sophisticated, there’re still some key indicators that can help you spot fraudulent activity:

  1. Mismatched email addresses or domains. Even if the display name looks familiar, always check the actual email address or domain for irregularities. If an email claims to be from your bank but the email address looks suspicious (e.g., from a free email provider), it could be spoofed.
  2. Unusual requests. Be cautious of unexpected or urgent requests for sensitive information. Legitimate organizations rarely ask for passwords, credit card details, or Social Security numbers via email or phone calls.
  3. Poor grammar or spelling. Many spoofing attempts contain poorly written messages with noticeable spelling and grammatical errors. Professional organizations are unlikely to send communications with these kinds of mistakes.
  4. Unsecure websites. Before entering any personal information online, make sure the website is secure. Look for “https://” at the beginning of the URL, indicating that the site uses encryption to protect your data.
  5. Strange phone numbers. Even if a phone number appears to be legitimate, pay attention to any unusual behavior. If the caller is hesitant to answer questions or insists on acquiring sensitive information right away, it’s likely a scam.

How to Prevent Spoofing

While spoofing can be difficult to prevent entirely, there are several steps individuals and businesses can take to reduce the risk of becoming a victim:

  1. Use multi-factor authentication (MFA). Adding an extra layer of security to your accounts makes it harder for attackers to gain unauthorized access. MFA requires users to provide two or more verification methods (e.g., password and phone number) before accessing an account.
  2. Install security software. Keeping your software up to date and using reputable antivirus and anti-phishing tools can help detect and block spoofing attempts before they cause harm.
  3. Educate employees and users. Awareness training is crucial for reducing the risk of spoofing in a business environment. Teach employees how to recognize spoofing attempts and encourage them to verify communications before responding.
  4. Verify suspicious communications. If you receive an email or phone call that seems suspicious, take the time to verify it. Contact the company or individual through a known, trusted method to ensure the communication is legitimate.
  5. Enable email authentication. Businesses can reduce email spoofing by using email authentication methods like DMARC, SPF, and DKIM. These protocols help verify the origin of emails and prevent malicious actors from forging email addresses.

What Is the Difference Between Spoofing and Phishing?

While spoofing and phishing are closely related cyberattack methods, they’re not the same. Spoofing refers to any attack where a cybercriminal disguises their identity to appear as a trusted entity. This deception can occur through email, phone calls, websites, or even IP addresses. The main goal of spoofing is to trick the victim into believing that the communication is coming from a legitimate source. For example, in email spoofing, a scammer might make an email appear as though it’s from a trusted sender, such as a bank, to gain the recipient’s trust and steal sensitive information.

Phishing, on the other hand, is a specific type of cyberattack that uses deception to trick victims into providing personal or financial information. It often involves spoofing tactics but has a clear intent: to steal data or spread malware. Phishing typically comes from fake emails, text messages, or websites that urge victims to take immediate action, like clicking a malicious link, downloading an attachment, or entering login credentials.

So, essentially, spoofing is the method used to disguise the attack, while phishing refers to the broader strategy of using deception to steal information. Phishing often involves spoofing, but not all spoofing attacks are phishing attempts. For example, a spoofed phone call from someone pretending to be a legitimate business might not ask for sensitive information but could be used to spread false information or cause confusion.

Summary

  • Spoofing is a form of cyberattack where attackers disguise their identity to trick victims into providing sensitive information.
  • Some types of spoofing include email spoofing, caller ID spoofing, website spoofing, and IP spoofing.
  • Red flags for spoofing include mismatched email addresses, unusual requests, and unsecure websites.
  • Preventing spoofing involves using tools like multi-factor authentication, security software, and employee training to detect and avoid scams.
  • Spoofing impersonates trusted sources to gather information, while phishing deceives users into revealing personal details through fake communications.

 

Related articles

Finance glossary

What is MFA?

Multi-factor authentication (MFA) is a security method that requires users to prove their identity using two or more distinct factors before accessing …

Read more
Finance glossary

What are imposter scams?

Imposter scams are a type of fraud where scammers pretend to be trusted individuals, companies, or government agencies to deceive victims into …

Read more
Finance glossary

What is accounts payable fraud?

Accounts payable fraud is a deceptive practice that exploits vulnerabilities in a company’s payment processes. It occurs when individuals—whether employees, vendors or …

Read more

The new security standard for business payments

Eftsure provides continuous control monitoring to protect your eft payments. Our multi-factor verification approach protects your organisation from financial loss due to cybercrime, fraud and error.