Stephen Dougherty, CEO of RexxField Cyber Investigations, returns to Detonation Point presented by Elastio for a wide-ranging conversation about the evolving cyber fraud landscape.
From business email compromise (BEC) and cryptocurrency scams to AI-powered social engineering, Stephen shares what he is seeing firsthand and why many familiar fraud tactics continue to work. Matt and Stephen also look back on their time helping launch the U.S. Secret Service’s Global Investigative Operations Center (GIOC) before shifting gears for some obligatory sports talk.
Business Email Compromise Is Still a Major Threat
Nine years after Matt and Stephen helped launch the GIOC, BEC remains a significant problem.
Stephen shares examples of attackers gaining access to email accounts, creating malicious email rules, and using lookalike domains to manipulate communications between businesses. In one recent case, fraudulent rules prevented a victim from receiving legitimate messages about unpaid invoices, allowing the scammers to control the payment conversation.
Stephen also discusses RexxField’s work tracing stolen funds and investigating the infrastructure behind these attacks, including efforts that have recovered millions of dollars for fraud victims.
How Social Engineering and AI Are Changing Scams
The conversation turns to cryptocurrency investment scams, pig butchering, and the increasingly sophisticated ways criminals gain a victim’s trust.
Stephen describes a case in which a victim downloaded a fraudulent version of a cryptocurrency app that appeared legitimate. After entering sensitive account information, the victim ultimately had $800,000 in cryptocurrency stolen from their real account.
AI adds another layer to the challenge. Stephen explains how scammers can use AI to strengthen social engineering, particularly in romance and investment scams where victims may believe they are developing a relationship with a real person. Voice and video cloning are also becoming cheaper, easier to access, and more convincing.
Can We Make Cybercrime Less Profitable?
Education and law enforcement remain important, but Stephen argues that neither can solve the cyber fraud problem alone.
Instead, he and Matt discuss the need to combine law enforcement, education, technology, and financial disruption. One of the bigger questions is how to make fraud less economically attractive to criminals by finding better ways to stop the flow of stolen money and disrupt the infrastructure that enables these crimes.
Nine Years Since the GIOC
Matt and Stephen also reflect on the nine-year anniversary of the U.S. Secret Service’s Global Investigative Operations Center.
They discuss what worked in the GIOC’s early days, what they learned as the operation expanded, and the challenges that can come when high-performing teams scale too quickly. Their conversation offers lessons that extend beyond government, including the importance of maintaining cohesion, speed, and a clear mission as organizations grow.
And, Of Course, Sports Talk
No conversation with Stephen would be complete without some sports.
Matt and Stephen wrap up with their takes on the Phillies and Eagles, the NFC East, predictions for the upcoming NFL season, and a few early Super Bowl picks. They even revisit memories of watching the World Cup together at the GIOC.
More From the Detonation Point Blog
Continue exploring conversations on cybersecurity, fraud, investigations, and leadership:
- SIM Swapping: How to Protect Your Digital Identity with Mark Kreitzman
- Beyond the Badge: Leadership, Cyber & the Next Mission with Ray Shuler
- Going Undercover to Infiltrate Cybercriminal Networks with Rich LaTulip
Hear the Full Episode
Watch or listen the full conversation with Stephen Dougherty on Detonation Point presented by Elastio.
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