What happened when a client’s client got hacked?

by | Aug 15, 2025 | IT News & Insights New Zealand | Cybersecurity, AI & Microsoft Updates

Sometimes the best way to understand cybersecurity isn’t through theory, but through real examples. Recently, one of our clients experienced a perfect demonstration of why layered security matters – and how our KARE security suite can stop threats before they cause damage.

The Attack: When Familiar Becomes Dangerous

The incident started in the most common way possible: with an email. Our client received what appeared to be routine communication from one of their own clients – someone they knew and trusted. The email looked legitimate, the sender was familiar, and clicking the embedded link seemed like the natural next step.

But appearances can be deceiving in the world of cybersecurity.

What Actually Happened

Unknown to our client, the email they received hadn’t actually come from their trusted contact. The sender’s account had been compromised, and cybercriminals were using this trusted relationship to spread their attack further. When our client clicked the link, they were being directed to a malicious website designed to steal credentials, install malware, or worse.

This is a textbook example of a business email compromise (BEC) attack combined with lateral movement – where attackers use one compromised account to target connected businesses and contacts.

Where KARE Stepped In

Here’s where the story takes a positive turn. The moment our client clicked that malicious link, KARE’s web protection kicked into action. The AI-powered security agent running in their browser immediately identified the destination as malicious and blocked access to the site.

The threat was stopped dead in its tracks.

Our client never even saw the malicious website. Instead, they were presented with a clear warning that the site had been blocked for their protection. What could have been a successful cyberattack became nothing more than a brief interruption to their day.

The Investigation: Understanding the Bigger Picture

Following the incident, our client did exactly the right thing – they raised a support ticket with us. Our security team immediately began investigating to understand the full scope of what had happened.

The investigation revealed an important detail: while our client’s systems remained completely secure thanks to KARE’s protection, their business contact – the original sender – had indeed been compromised. This confirms that the attack was genuine and potentially serious.

Why This Demonstrates Layered Security

This incident perfectly illustrates why we design KARE as a layered security solution. Here’s what worked:

Email Security: While the malicious email made it through (which isn’t uncommon when it comes from a legitimate, previously-trusted account), this was just the first layer.

Web Protection: The AI-powered web security agent in the browser acted as the crucial second layer, identifying and blocking the malicious destination in real-time.

User Awareness: Our client’s decision to report the incident allowed us to investigate and confirm the nature of the threat, providing valuable intelligence for future protection.

Ongoing Monitoring: Our security team was able to verify that no compromise had occurred and provide peace of mind.

What This Means for Your Business

This real-world example highlights several important cybersecurity realities:

Trusted Senders Can’t Always Be Trusted: Even emails from familiar contacts can be dangerous if their accounts have been compromised. Traditional email security can’t always catch these attacks because they come from legitimate accounts.

Human Error Is Normal: Our client’s response was entirely reasonable – clicking a link from a trusted contact is what most people would do. The key is having security systems that protect against these natural human responses.

Modern Threats Require Modern Solutions: Traditional antivirus software might not have caught this attack. It required AI-powered, real-time web analysis to identify and block the threat.

Quick Response Matters: By reporting the incident immediately, our client helped us understand the threat and confirm their systems remained secure.

The Bottom Line

Cybersecurity isn’t about preventing every single threat from reaching your organisation – that’s impossible in today’s interconnected world. Instead, it’s about creating multiple layers of protection that can catch threats at different stages of an attack.

In this case, KARE’s web protection acted as the crucial safety net when the first line of defence (email security and user awareness) wasn’t enough. The AI agent recognised the threat and stopped it before any damage could occur.

This incident serves as a perfect reminder that effective cybersecurity is about building robust, layered defences that can adapt to the constantly evolving threat landscape. When attackers get creative, your security needs to be even more creative in response.

Most importantly, it shows that with the right security measures in place, what could have been a serious breach became nothing more than a brief interruption – and a valuable learning experience.


If you’re interested in learning more about how layered security can protect your business, or if you’ve experienced a similar incident, don’t hesitate to reach out to our team. Understanding these real-world examples helps us all stay better protected.