What is Business Email Compromise (BEC): Understanding and Mitigating

In 2024, Business Email Compromise (BEC) attacks remain one of the most prevalent and damaging cyber threats facing organizations.

According to the FBI's Internet Crime Complaint Center (IC3), BEC attacks have resulted in over $2.7 billion in reported losses globally in the first half of 2024 alone. 

What is Business Email Compromise (BEC)?

Business Email Compromise (BEC) is a type of cybercrime where attackers infiltrate or impersonate a legitimate business email account to deceive employees or business partners into transferring funds or sensitive information. These attacks can take various forms, including fake invoice schemes, CEO fraud, and account compromise. Attackers often study their targets carefully, waiting for the perfect moment to strike, typically by sending an email that appears to come from a trusted source, such as a company executive or a familiar vendor. 

Types of BEC Scams: 

• Fake Invoice Scheme: Attackers impersonate a supplier and request payment for a fake invoice. 
• CEO Fraud: An attacker poses as a CEO or other high-ranking executive, instructing an employee to transfer funds urgently. 
• Account Compromise: The attacker gains access to an employee's email account and uses it to request payments or sensitive information from business contacts. 
• Attorney Impersonation: Attackers impersonate a lawyer or legal representative and request urgent, confidential information or payments.
• Data Theft: Attackers target HR or finance departments to steal sensitive employee or financial data, which can be used for further attacks or sold on the dark web. 
• Gift Card Scams: Attackers impersonate executives and ask employees to purchase gift cards for personal or business reasons, then send the card details to the attacker. 
• Payroll Diversion: Attackers target HR or payroll departments to change direct deposit information, diverting employee pay checks to fraudulent accounts. 

Attackers often exploit psychological tactics such as urgency and authority to pressure their victims into acting quickly without thorough verification. BEC emails often evade traditional defenses because they appear to come from a trusted source, lack typical signs of phishing, and use language and formatting consistent with the business's normal communications. 

Mitigating BEC Risks

Organizations can mitigate the risks of Business Email Compromise attacks by implementing multi-factor authentication, using advanced email filtering systems, and conducting regular security audits. Employee training is crucial; staff should be aware of the tactics used in BEC attacks and know how to handle suspicious emails. Additionally, establishing strict verification processes for financial transactions can prevent unauthorized transfers. 

What to Do If You Fall Victim to a BEC Scam

If you suspect a Business Email Compromise attack, act immediately. Contact your IT department, report the incident to law enforcement, and notify your bank or financial institution to stop any unauthorized transactions. Quick action can help minimize damage and prevent further losses. 

To spot a Business Email Compromise attack, be vigilant for unusual requests, especially those involving money transfers or sensitive information. Verify the sender’s email address, scrutinize any changes in writing style or tone, and double-check the authenticity of unexpected or urgent requests, particularly if they involve confidential information.