Cuckooed

Cuckooed is a term used to describe a type of financial scam. It involves criminals gaining unauthorized access to a business's bank account and then using it to make fraudulent payments. The term originates from the cuckoo bird, which lays its eggs in the nests of other birds, effectively taking over the host's resources.

The cuckooed scam typically begins with a phishing attack or social engineering to obtain sensitive business information, such as login credentials for online banking. Once the criminals have access, they might create a new payee on the business's account, often a company they control. They then initiate a payment to this fraudulent payee, sometimes disguising it as a legitimate business transaction. The victim may not realize the theft has occurred immediately, especially if the fraudulent payment is small or occurs during busy periods.

Businesses are particularly vulnerable to cuckooed attacks due to the volume of transactions they handle and the potential for internal employees to fall victim to social engineering tactics. Recovery of funds can be challenging, as the money is often quickly moved through multiple accounts. Prevention strategies include implementing strong cybersecurity measures, multi-factor authentication for banking access, employee training on identifying phishing attempts, and regular monitoring of bank statements for any unusual activity.