I. “We Thought MFA Was Enough.” Spoiler: It Wasn’t.
When I first came across the April 2025 breach disclosure from a mid-sized software firm based in Ontario, one thing stood out: the complete trust they had in their email security setup.
The company (name withheld due to NDA agreements) had MFA, antivirus, a firewall, and some user training in place. But what they didn’t have was email authentication enforcement—no DMARC, no SPF reject policy, no DKIM alignment. And that’s how the attacker got in.
It started like it always does: one email. One click.
II. Anatomy of the Breach: A Play-by-Play Breakdown
Day 1:
An employee from the finance department received an email from what looked like the CFO.
Subject line: “Urgent Transfer Request – Final Approval Needed.”
It wasn’t caught by spam filters—because it passed SPF and DKIM using a lookalike domain.
Day 2–4:
The attacker, having tricked the employee into clicking a link and logging into a spoofed Microsoft 365 page, gained access to the mailbox.
The real problem? They set up auto-forwarding rules to quietly monitor all inbound and outbound emails.
Day 5–7:
With access to sensitive internal communications, the attacker launched a second wave—targeting vendors, clients, and internal approvers. At least one vendor paid an invoice to the attacker’s account.
III. The Fallout: Here’s What It Cost Them
By the time IT realized what had happened, they were dealing with more than a compromised account. This was a supply chain-level breach with real-world financial damage.
Here’s what they had to deal with:
$180,000 lost via fraudulent transfers
28 business days of disrupted client communication
Privacy Commissioner of Canada involved due to data exposure
Reputational damage with two long-standing enterprise clients
A fine of $75,000 under PIPEDA for not having sufficient technical safeguards
Let that sink in. A lack of basic email authentication controls cost them over a quarter million dollars.
IV. What Should’ve Happened Instead
This breach wasn’t about “sophisticated threats.” It was about a failure to implement the basics.
If they had deployed YourDMARC—or any strong domain protection strategy—the spoofed CFO email would’ve never hit the inbox.
1. Enforce DMARC, SPF, and DKIM
With a DMARC policy set to reject, emails from fake [email protected] wouldn’t have made it past the first mail server.
2. Detect Lookalike Domains
YourDMARC could have alerted them that a similar domain—theirc0mpany.ca—had just been registered and was used in email.
3. Monitor for Suspicious Mail Flow
The auto-forwarding rules would’ve triggered alerts under email flow monitoring.
4. Apply Zero-Trust Principles to Inbox Access
Session-based security and behavioral monitoring would’ve flagged anomalous login patterns from Europe.
V. The Long Road to Recovery (and Reputation Repair)
The company responded by bringing in outside security consultants, sending breach notifications, and conducting a full internal audit.
They’re now a YourDMARC client, of course—but they learned the hard way.
They also revamped their incident response protocol, re-trained staff, and rolled out stronger phishing-resistant MFA (using passkeys, not SMS).
But one thing the CEO shared with us, which stuck with me:
“We assumed phishing was someone else’s problem. That assumption cost us six figures.”
Final Takeaways: This Could’ve Been You
This wasn’t a massive enterprise. It was a normal, growing mid-market business with decent IT policies.
And still—one email slipped through. And from there, it snowballed.
If you think your business can’t be targeted—or that MFA alone is enough—this story proves otherwise.
The real fix?
Start by securing your domain. Enforce DMARC. Stop the email before the user even sees it.
Because after that?
It’s often too late.