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Cybersecurity threats

Shadow AI: The Risk Already Inside Your Organization

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Shadow AI Graphic

Picture this: a member of your sales team has a big proposal due tomorrow. They paste the client’s contract into a free AI chatbot, ask it to summarize the key terms, and fire off the proposal in half the time it normally takes. Simple. Smart. Efficient.

Not only a potential compliance violation — but possibly a data breach.

That’s Shadow AI in action. No malicious intent. No awareness of risk. Just someone trying to do their job better, using the tools they know work.

It’s happening in nearly every organization right now. And most leadership teams have no visibility into it at all

Artificial intelligence is transforming how work gets done. From drafting emails and analyzing data to writing code and summarizing meetings, AI tools are now embedded in daily business workflows. But alongside this productivity surge is a fast‑growing and largely invisible risk: Shadow AI.

Many organizations are investing heavily in approved AI platforms—yet employees are often using AI tools outside of IT, security, and compliance oversight. This gap between sanctioned AI strategy and real‑world usage is where Shadow AI thrives.

Understanding Shadow AI—and how to manage it without stifling innovation—is now a critical leadership responsibility.

What is Shadow AI?

Shadow AI refers to the use of artificial intelligence tools, models, or services by employees without formal approval, governance, or visibility from IT or security teams.

It is the AI‑era evolution of “shadow IT,” but with higher stakes.

Examples of Shadow AI include:

  • Employees pasting sensitive documents into public AI chatbots to summarize or edit content
  • Teams using free or personal AI accounts instead of enterprise‑licensed tools
  • Developers calling external AI APIs directly from applications without review
  • Browser extensions, AI meeting note‑takers, or copilots accessing company data without oversight
  • AI features embedded in SaaS platforms that activate automatically without governance review

In most cases, there is no malicious intent. Employees are simply trying to work faster, meet deadlines, and stay competitive. The problem is that data, decisions, and workflows are now happening outside the organization’s control.

How Can Shadow AI Affect Your Business

Shadow AI is not just an IT policy issue—it is a business risk with financial, legal, and reputational consequences.

1. Data Leakage and Loss of Control

When employees input proprietary, customer, or regulated data into unapproved AI tools, that data may:

  • Be stored or retained by third parties
  • Be used to train external models
  • Leave the organization permanently with no retrieval or deletion capability

Once data crosses that boundary, control is effectively lost.

2. Regulatory and Compliance Exposure

Shadow AI can easily violate regulations such as:

  • GDPR
  • HIPAA
  • PCI‑DSS
  • Industry‑specific data handling rules

Because usage is untracked, organizations may not even know they are non‑compliant until an audit, breach, or regulatory inquiry occurs.

3. Security Blind Spots

Unapproved AI tools create invisible attack surfaces:

  • No audit logs
  • No monitoring
  • No incident response visibility

If sensitive data is exposed through an AI interaction, security teams may have no way to trace what happened, when it happened, or what data was involved.

4. Operational and Decision Risk

AI outputs can be inaccurate, biased, or misleading. When employees rely on ungoverned AI for:

  • Financial analysis
  • Legal drafting
  • Strategic recommendations

…errors can propagate into business decisions, contracts, or customer interactions with real downstream consequences.

5. Reputational Damage

A single incident involving leaked customer data or confidential strategy documents can erode trust with customers, partners, and regulators—often faster than the organization can respond.

Many companies try to “ban” AI tools outright. This rarely works.

Shadow AI persists because:

  • AI tools are easy to access and require no installation
  • Employees are rewarded for speed and efficiency
  • Approved tools often lag behind real business needs
  • Enforcement without alternatives drives usage underground

The reality is simple: people will use tools that help them do their jobs better.

The goal is not to eliminate AI usage—it is to make safe, governed AI easier to use than unsafe AI.

Mitigating the Risks of Shadow AI

Effective Shadow AI mitigation balances visibility, governance, and enablement—not prohibition.

1. Establish Clear AI Usage Policies

Define:

  • What data can and cannot be used with AI
  • Which tools are approved
  • Where human review is required
  • Accountability for AI‑assisted decisions

Policies should be practical, readable, and aligned with how people actually work.

2. Provide Approved, Easy‑to‑Use AI Alternatives

Employees turn to Shadow AI when approved tools are unavailable or inadequate.
Offering secure, enterprise‑grade AI solutions reduces the incentive to go elsewhere.

3. Increase Visibility Across the Environment

Organizations need visibility into:

  • Web‑based AI usage
  • SaaS‑embedded AI features
  • API integrations
  • Browser extensions and agents

You can’t manage what you can’t see.

4. Implement AI Governance and Risk Review

Treat AI like any other business‑critical system:

  • Vendor risk assessments
  • Data classification controls
  • Security and privacy reviews
  • Ongoing monitoring

AI governance should be cross‑functional—IT, security, legal, compliance, and business leadership.

5. Train Employees on AI Risk (Not Just AI Power)

Most employees are unaware of the risks they introduce.
Training should focus on:

  • Real‑world examples
  • Data handling expectations
  • When to stop and ask before using AI

The goal is informed use, not fear.

Shadow AI is not a future problem—it is already embedded in most organizations.
The question is no longer “Are employees using AI without approval?”
The real question is “Do we have visibility, governance, and safe alternatives in place?”

Organizations that respond with bans and blanket restrictions will fall behind.
Those that embrace AI responsibly—while managing risk—will move faster, safer, and with greater trust.

Have questions or need help with your AI implementation? Oversee My IT can help ~ Contact Us: Oversee My IT – Cybersecurity, Secure IT, Cloud services

Keep Kids Safe Online

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Social Engineering

January Recap: All You Need to Know About Social Engineering

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This month, we covered a range of topics concerning social engineering. Social engineering is now considered one of the most prevalent risks when it comes to online security. Most hackers rely heavily on social engineering tactics to lure unsuspecting users to divulge information.

It sounds complicated but it’s nothing more than the practice of manipulating people into revealing information through the use of false pretenses. It often creates a sense of urgency, fear or excitement, playing with people’s emotions to get them to do exactly what the hackers want them to do. In case you missed any of them, here is a brief summary.

social engineeringWeek 1: What Is Social Engineering and How Can It Affect Your Business?

We discussed the basics of social engineering and how the different types of attacks are used to exploit unsuspecting victims. We also looked at what makes up a successful social engineering attack and how attackers might use modern technology to increase their reach. Specifically, attackers may utilize deception techniques such as phishing emails or malicious links in order to gain access to personal information or data. Additionally, attackers may use impersonation tactics in order to manipulate their target into giving away information or credentials.

Social engineering is the infiltration of something secure, intending to acquire information or secure access through cunning means. With the use of modern technology, social engineering is now possible with the victims not even knowing. If you are caught unprepared, as a result, this could potentially lead to the downfall of your business. With awareness and the presence of mind, you can easily avoid becoming a victim. One of the commonly used methods is tailgating or entering the premises on the pretense that they are an authorized entity.

Simple practices like refraining from opening suspicious-looking emails and attachments would be very helpful. It is also advisable to implement multifactor authentication in all your systems and to keep your antivirus software updated. Click here to read more of our week-1 blog defining what exactly social engineering is.

 

Social Engineering scamsWeek 2: Where Does Social Engineering Scams Come from?

In order to prevent these attacks from being successful, it is important for users to remain aware and educated about cybersecurity best practices and protocols. This includes implementing strong passwords that include both upper- and lowercase letters, numbers, and special characters; avoiding suspicious links through email or messaging services; and utilizing two-factor authentication measures when possible–for example, when accessing accounts online or over public Wi-Fi networks. Users should also use secure VPNs whenever possible to protect their remote data..

There are more than 4.74 billion social media users today. Hackers are using social media to entice unsuspecting users into their traps. They create fake accounts that are used in either of the following four ways:. MIPs are bare profiles, usually with seductive profile photos that are meant to get people interested enough to add them as a contact. A hacker will then use this fake MIP to send malware through messenger or post malicious links on your wall. Fully Invested Profiles are intended purpose of fully invested profiles is the same as those created for MIPs. Click here to read more of our week-2 blog about the origin of social engineering.

 

 

Cybercriminals Use Social EngineeringWeek 3: The Top 5 Ways Cybercriminals Use Social Engineering

Finally, we presented best practices for staying safe online when encountering suspicious links or other potentially dangerous content. For example, links in messages can lead to malicious sites with malware that could compromise users’ personal information and devices. It is also important for users not to respond immediately if they receive an unexpected message from someone they do not know or recognize – even if it appears legitimate – as this could be an attempt by adversaries to gain access to sensitive data via impersonation techniques.

Cybercriminals use social engineering to play on victims’ emotions and gain their trust. There are a number of different ways that cybercriminals manipulate their victims online. Phishing is by far the most common and most effective tactic that hackers use in social engineering. This is where the hacker pretends to be someone that the victim knows, then asks for their login details. There are so many ways that cybercriminals use social engineering for malicious intent these days. Piggybacking, also known as tailgating, is when someone discreetly follows an authorized person into a restricted area of the building. As a business owner, it is crucial to ensure that you educate all your employees fully when it comes to social engineering attacks and other cybercrimes. Click here to read more of our week-3 blog and the top 5 social engineering threats.

By following these tips and remaining vigilant about potential attacks, everyone can make sure to stay safe online! Give us a call if you think you need help strengthening your business against attacks.

Cybercriminals Use Social Engineering

The Top 5 Ways Cybercriminals Use Social Engineering

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Social Engineering scams

Where Does Social Engineering Scams Come from?

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Social engineering scams are so much more rampant these days than ever before. There will certainly be suspicious-looking items in your inbox when you check your emails, which are most likely phishing emails. Many people now know to avoid clicking these malicious emails, which is a good thing. But still, their vast amount makes you wonder, where do social engineering scams come from anyway? The very simple answer to that is social media.

How Social Media Is Used for Social Engineering scams

According to the latest count, there are more than 4.74 billion social media users today. For hackers, each of these users is a potential target. Hackers are using social media to entice unsuspecting users into their traps because there is such a large online population. Specifically, they create fake accounts that are used in either of the following four methods.

Manipulating Public Opinion

People can be very impressionable, especially regarding things they see on social media. Social engineers take advantage of this vulnerability to sway the public’s view on certain things, like politics. Political parties routinely create millions of fake accounts to spread information that could sway voters during elections. Online, posts from phony accounts can spread quickly and have a significant impact on voters for very little money. This is what you call Social Engineering scams.

False Advertising

It is very common to see posts on social media where you can supposedly win a prize if you like or share their page. Or how about those pages that are apparently on the verge of closing down and need to dispose of their inventory quickly, where you can get a chance to get one of their products by simply sharing their page. These are nothing but social engineering scams called false advertising.

After Steve Jobs’ death, a viral post claimed Apple was honoring him by giving away iPhones and iPads.. Millions of people from around the world clicked on the malicious link, thinking they were just entering a raffle. What happened instead was that their devices got infected with a nasty virus.

Minimally Invested Profiles or MIPs

Minimally invested profiles are created en masse and are usually bare profiles, usually with seductive profile photos that are meant to get people interested enough to add them as a contact, typically on Facebook. Once the connection has been established, the hacker will then use this fake MIP to send malware through messenger or post malicious links on your wall. That is when they start the social engineering scams.

Fully Invested Profiles or FIPs

The intended purpose of fully invested profiles is pretty much the same as that of the MIPs, which is to get people to click on certain links. But an FIP involves more effort as it is made to look authentic to the eyes of the target victim. It could imitate the account of real contact, and they might try to add you saying that they created a new account because they were hacked, or they forgot the password, and so on.

You can actually spot these fake profiles easily by practicing due diligence. Check out every account before accepting friend requests. If the account is relatively new and is suspiciously lacking in friends or content, then that is a red flag right there.

Protect Yourself From Social Engineering Scams

Social media may be part of our daily lives, but that doesn’t mean you can use it carelessly. Never be caught unaware when you are online, especially when you are using social media. This goes for both your personal and business accounts. If you use social media for business, it’s best to train all your employees in online attack prevention.

We have prepared a Free ebook that you can read just to see how prepared you are to face social engineering scams or attacks. If you feel there is room for improvement, give us a call and we can step in anytime to boost your defense and increase your protection against online threats.

social engineering

What Is Social Engineering and How Can It Affect Your Business?

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Terms like phishing and malware have become very common terms these days because of their widespread use online. Did you know that these activities are but a small part of a much bigger operation known as social engineering?

Definition of Social Engineering

The term might be new but the practice has been going on for centuries. It’s the infiltration of something secure, intending to acquire information or secure access through cunning means. With the use of modern technology, social engineering is now possible with the victims not even knowing. If you are caught unprepared, as a result, this could potentially lead to the downfall of your business.

External Threats in Social Engineering

Businesses these days rely heavily on technology across all operations and as a result, it makes our life easier. This gives social engineers vast opportunities to trick people into providing all sorts of information, such as the following.

Phishing

Phishing is by far the most prevalent form of social engineering attack. It is a very straightforward kind of trickery, and that simplicity is also the reason why it is so effective. Through an authentic-looking email, the hacker would take victims to websites that look real and ask them to log in, which many people would do without a second glance. Just like that, you would just as well be giving the hackers the keys to your network.

Spear Phishing

This kind of social engineering attack is a highly targeted version of phishing. It is directed at specific victims and involves a great deal of preparation, making use of contacts and references very familiar to the targeted victim, making the scam almost imperceptible.

Baiting

Just as the term suggests, this strategy is all about enticing the victim to fall for the bait. There are many approaches to this, like telling them they won something then asking to click on a link to claim the prize, or letting them know that their computer has been infected and again, getting them to click on a link that will supposedly fix the problem.

Internal Threats in Social Engineering

Once a hacker is in the system, there are countless ways that they can steal information or wreak havoc on your business. So getting their foot in the door is of the utmost priority for many of these devious social engineers.

Doing this physically is not as difficult as it might seem. One of the commonly used methods is tailgating or entering the premises on the pretense that they are an authorized entity. Many hackers also take advantage of what they can glean from public information, which is surprisingly a lot, especially if they have the patience to do a regular observation of the target area, or are willing to go dumpster diving.

How to Keep Your Business Safe from Social Engineering Threats

It’s quite scary to think that many use social engineering tactics today, but with awareness and the presence of mind, you can easily avoid becoming a victim. Simple practices like refraining from opening suspicious-looking emails and attachments would be very helpful. It is also advisable to implement multifactor authentication in all your systems and to keep your antivirus software updated.

In conclusion, as a business owner, it would be in your best interest to have all employees undergo training that will equip them with the tools and skills needed to circumvent any social engineering attack. You can find out just how much your staff knows about social engineering and other online threats by having them read this Free ebook.

We can help bolster your company’s defenses against online threats of all kinds. From training your employees to updating your network, we can cover for you. Just let us know when you are ready and we will be happy to be of service!

Disaster Recovery

Quiz Time: How Well Do You Understand the Role of Backup Disaster Recovery?

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In recent weeks, we have talked a lot about backup disaster recovery and how important it is when running a business. We have discussed what a business owner needs to form a solid recovery strategy. We’ve also listed some terrible things that can happen if you don’t protect your business with a good plan for dealing with disasters.

It troubles us that many business owners do not fully understand backup disaster recovery and do not take it seriously. If you want to check your comprehension of this process, you can take this simple quiz we have prepared. It is very informative and reveals important facts about disaster recovery.

A Brief Quiz on Backup Disaster Recovery

The following are ten statements that have to do with backup disaster recovery. Read each one carefully and establish whether the statement is TRUE or FALSE.

  1. Cyberattacks are no longer as frequent as in previous years, so having a disaster recovery plan for your business data is not important anymore.
  2. Backup and recovery involve making copies of data and storing them in a safe place where they can be accessed and restored if needed.
  3. Cloud-based data backup is completely and permanently safe.
  4. Hiring a professional to back up your data and doing it yourself are equally reliable.
  5. You can only lose your data if a hacker infiltrates your system.
  6. Hackers can create a data breach through phishing attacks.
  7. There is no connection between being hacked and having weak passwords.
  8. Regularly updated cybersecurity software will protect you from phishing attacks.
  9. Data encryption is an effective way to protect your data from hackers.
  10. Implementing multi-factor authentication for all employees can be expensive for your company.

Quiz Answers

  1. FALSE.

Quite the contrary, cyberattacks are even more prevalent today than ever. There are also many new kinds of attacks that were unheard of as hackers have become more creative as we improve our disaster recovery plan.

  1. TRUE.

Data can be duplicated and stored in as many locations as you want. Usually, there is at least one on-site and one off-site location. Frequent backups are recommended.

  1. FALSE.

It’s safer than a few other types of storage, but cloud backups are still not 100% guaranteed to be safe, especially now that a rising number of cyberattacks are targeting the cloud.

  1. FALSE.

A professionally managed service provider can do so much more to protect and back up your data than you can do on your own for disaster recovery. This protection includes 24/7 monitoring and full restoration in case of a disaster.

  1. FALSE.

There are many ways of losing data. It could be through an online attack, human error, electronic failures, natural disasters, and many more.

  1. TRUE.

Phishing is now a common way for hackers to steal data, and it is also used to break into networks and encrypt data.

  1. FALSE.

According to surveys, approximately 80% of data breaches can be traced to weak passwords and are not recommended when having a disaster recovery plan.

  1. FALSE.

It is necessary to update your cybersecurity software. Unfortunately, this does not ward off phishing attacks. For protection from these scams, employee training and education are the best forms of protection.

  1. TRUE.

Data encryption is one of the most trusted methods of protection. A managed service provider can easily do this for you and keep your confidential information safe.

  1. FALSE.

Multi-factor authentication is one of the cheapest ways for business owners to protect their data and have disaster rcovery, but they don’t spend enough on it.

Evaluating the Results

As we said, there are a lot of false notions about backup data recovery. So if you did not get a perfect score, don’t fret! The good news is that you are now more informed. We can also help you protect your business with a reliable backup and disaster recovery strategy that you can quickly and systematically roll out whenever necessary.

If this Quiz was harder than it looked, then maybe you should watch out Free ebook to brush-up on the latest cyber trends. If you have any questions about your data security, give us a call and let’s solve that problem.

Disaster Recovery Plan

The Consequences of Not Having a Proper Disaster Recovery Plan

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We have often talked about how having a disaster recovery plan is one of the most crucial elements of good business management. Despite our constant posts and reminders, however, there are still thousands of business owners all over the world that do not take disaster recovery seriously.

Most businesses take precautions to protect other aspects of their business—car insurance, vendor contracts, and so on. But it’s scary that many people choose not to spend money on a good disaster recovery plan.

How will you handle a disaster that damages your data, equipment, or other resources? If you have prepared a business contingency plan for such events, you will have something to fall back on. There might be losses, but they will be minimal, and you will be able to restore everything soon enough.

If you don’t have a proper disaster recovery plan, you might not be able to continue with business operations. Here are some consequences you might face if you cannot prepare a suitable recovery plan for your business right from the beginning.

Disaster and Substantial Data Loss

Businesses rely on many kinds of data to operate properly. From marketing to sales to customer records, your company’s data plays a considerable role in day-to-day operations. If your data gets lost or damaged, your business can invariably collapse!

Even huge companies are not immune to the effects of data loss. Many people have had to spend millions of dollars just to get their data back after they lost it because of a cyberattack or a natural disaster.

Business Interruption

If a disaster hits your business and you don’t have the means to recover, your operations may come to a stop. You can’t work and earn money until your business is back on its feet. Without a proper disaster recovery plan, recovery can take a very long time!

Depending on the amount of damage, you will either need to rebuild your business or relocate. Either way, the process will be difficult if you don’t have a recovery plan.

Loss of Customers when not having a Disaster Recovery Plan

No matter how loyal some of your customers might be, it is unlikely that all of them will stick around if they see that your business has suffered from a disaster. Some may wait a while if they see you doing your best to recover and restore all lost information. They will take their business elsewhere if they discover you can’t fully recover.

What’s worse is that even if the disaster did not directly affect other clients, the news might spread quickly, and they might leave as well. New prospective clients might also think twice about entrusting their needs to you.

Huge Spending

Disaster recovery can be expensive, even with a plan, especially if you do not prepare for a disaster. Depending on the type of disaster, you may need to buy new hardware and re-encrypt any lost or damaged data. You are also losing a lot of money because you haven’t yet gotten back on your feet.

Disaster Recovery Plan: Final Thoughts

Research shows that 40% of businesses do not have a contingency plan in case of a disaster. These businesses will have a hard time getting their money back if something bad happens.

If you want to prepare your business for a disaster, we can help! Get in touch with us, and we will build a disaster recovery strategy to give your business the most comprehensive protection possible. If you want to test your Backup Disaster Knowledge, take our Free ebook.

Data Recovery Strategy

Things to Consider in Building a Data Recovery Strategy

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Disasters have different effects on our business, all of them unpleasant. We can avoid many of these disasters by setting up cybersecurity protocols to protect sensitive data. We can think of a data recovery strategy to help prevent these disasters from happening. Many threats avoid the tightest defences, leaving your system in complete chaos. With these breaches, you need a plan for recovering data that will keep your business running even if something unexpected happens.

Types of Disasters to Look Out For With Your Data Recovery Strategy

There are many types of disasters that can befall a business. The first type that comes to mind is the online attacks that lead to data breaches, hacking, and data theft if you don’t have a recovery strategy in place. Indeed, cybercrime is among the leading causes of data loss and damage these days. But there are also plenty of other dangers that you should be able to recover from.

Building Disasters

Natural disasters or man-made disruptions in the physical location of your business can cause a lot of damage and must be planned for. If you experience a fire or the power goes out, a bucket of water or generators might not be enough to save your business. You will also need a good data recovery strategy that you can rely on.

Communication Failure

Digital and non-digital disasters can also cause a failure in communication. Hacking and data breaches, for instance, can hinder inter-departmental communication. Natural disasters can also cut off communication channels, but differently.

Application Failure

Hardware and software that haven’t been updated regularly can cause systems to crash, which can cause data loss or damage if we have no recovery strategy for our data. You can protect your business from these things by ensuring your equipment and all apps are always up to date.

Datacenter Disasters

Malware attacks are the most common cause of data centre disasters. Viruses, phishing software, and similar tools can directly target your company’s data for theft or use them to make ransom demands.

City and Regional Disasters

These are more widespread disasters that affect the entire city or state. It can be harder to stop these disasters because they are often out of people’s control. Typhoons, floods, earthquakes, and other similar natural disasters are examples of this type.

National and Worldwide Disasters

These disasters happen on an even bigger scale. They can be physical or digital and can quickly spread to many places. The recent pandemic is an example of a disaster that was so bad that it stopped all businesses globally. Similarly, many types of data attacks also target victims on a global level. That is why we should always have a data recovery strategy in place when this type of disaster happens. 

Critical Elements of an Efficient and Reliable Data Recovery Strategy Solution

Now that you know what you are up against, you can plan a data recovery strategy that will work best for your business. When making a strategy, prioritize which parts of your business must be recovered first.

Each business is unique and has its own specific needs and priorities. To understand the best data recovery strategy for your business, you need to know about your resources, finances, risks, insurance, supply chain, and compliance needs.

The Crucial Role of Dependable Backup In Data Recovery Strategy

When coming up with a data recovery strategy, you should always have a copy of all your data for when something goes wrong. You can store your backup in the same place as your business, which sometimes works and is usually the easiest option. But usually, cloud-based data backup is much more reliable, especially in natural disasters that could destroy your physical data storage.

Final Thoughts

Preparing a data recovery strategy for your business is not something you should take lightly, as you can see. It will take a lot of careful thought, time, and, ideally, the expertise of cybersecurity experts.

One step you can take is to read our Free ebook. You’ll feel safer knowing your credentials are not for sale by hackers!

You know your business best, so you are in a great position to make a strategic plan for data recovery. But if you would like to take advantage of our team’s expertise and experience in data recovery, we are more than happy to help! Call us anytime, and we will prepare your business for any disaster.

Social Media Phishing

Quiz Time: Can You Handle Social Media Phishing Attacks at work?

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