Email is a cornerstone of business communication, but its widespread use has made it a weapon of choice for cybercriminals. Among the various email-based tactics they employ, business email compromise (BEC) has emerged as one of the most deceptive and damaging. Without proper preparation and knowledge, your organization can be severely impacted by this sophisticated form of fraud, which threatens your finances, reputation, and data security.
In this article, we’ll cover the basics of BEC, how it operates, the warning signs to watch for, and steps you can take to protect your business.
What is business email compromise?
BEC is an advanced cyber scam in which criminals impersonate trusted individuals — such as CEOs, vendors, or business partners — to trick employees into transferring funds or disclosing sensitive information.
These attacks don’t depend on malware or suspicious links. Instead, they exploit the most vulnerable element in any organization: human trust. By leveraging personal or professional details and imitating familiar communication styles, cybercriminals craft messages that appear credible. As a result, they can bypass standard security protocols, including firewalls and basic spam filters.
BEC attacks can lead to significant consequences, including financial losses, damaged customer trust, and compliance penalties. According to the FBI, BEC scams have caused more than $55 billion in global losses between 2013 and 2023. Just last year alone, these attacks cost American businesses $2.77 billion.
How do BEC attacks work?
BEC attacks follow a simple yet highly effective pattern:
Target selection and research
Criminals begin by identifying organizations with valuable assets or frequent financial transactions. They spend weeks researching potential targets through personal records, company websites, and social media. Finance departments, HR personnel, and executive assistants become prime targets because of their access to money and sensitive data.
Impersonation setup
Attackers create fake email accounts that closely mimic legitimate addresses. They might use subtle misspellings such as “cornpany.com” instead of “company.com” or register domains that appear authentic at first glance.
Building trust
The initial contact often seems harmless — a simple introduction or routine business inquiry. Criminals use this phase to establish credibility and study communication patterns within the organization.
The strike
Once trust is established, attackers make their move. They request urgent wire transfers, invoice payments, or sensitive employee information.
How to recognize BEC attacks
Fortunately, even the most well-crafted BEC attempts tend to have one or more tells, including:
- Urgent financial requests: Any email demanding immediate wire transfers should trigger suspicion, especially if it bypasses normal approval processes.
- Secrecy requirements: Requests to keep transactions confidential or avoid discussing them with colleagues are major warning signs.
- Unusual communication patterns: Pay attention to emails from executives that don’t match their typical writing style or contain subtle grammatical errors.
- Pressure tactics: Criminals often impose fake deadlines or threaten consequences to pressure targets into acting quickly, leaving little time to verify requests or spot flaws in the emails.
- Contact information changes: Be suspicious of emails requesting updates to vendor banking information or suggesting new communication channels.
How to prepare your organization for BEC attacks
There are several strategies you can implement to protect your organization from BEC.
Employee training
Because BEC attacks often exploit human behavior, it’s essential to train employees to recognize the warning signs and understand the consequences of a successful attack. Host regular training to both refresh your employees and notify them of recent BEC trends.
Verification procedures
Make sure employees verify any request for sensitive information or funds transfer, especially if it involves a large sum of money. A simple phone call or follow-up message to confirm a request can prevent devastating financial losses.
Go further and set up a system where two people must approve wire transfers and payment changes.
Email security controls
Implement email filtering solutions that can flag suspicious emails, such as those from unfamiliar sources or with unusual attachments. These tools can proactively identify BEC emails and prevent them from reaching your employees.
Multifactor authentication
To minimize the risk of account takeover — a BEC method where attackers gain control of legitimate email accounts to send fraudulent emails — enable multifactor authentication. This solution uses additional verification, such as fingerprint scans or one-time passwords, to prevent unauthorized access to your company’s email systems, even if attackers have stolen login credentials.
Take action today
Don’t wait for a BEC attack to happen. Start implementing these protective measures today. Preventing an attack costs far less than dealing with a successful one.
If you’re worried about BEC attacks targeting your business, Refresh Technologies can help. Contact us today to discuss how we can strengthen your business’s cybersecurity against BEC and other threats.