Business Email Compromise Jumped 81! Last Year Learn How to Fight It
In recent years, electronic mail (email for short) has become an essential part of our daily
lives. Many people use it for various purposes, including business transactions. With the
increasing dependence on digital technology, cybercrime has grown. A significant cyber
threat facing businesses today is Business Email Compromise (BEC).
Why is it important to pay particular attention to BEC attacks? Because they’ve been on
the rise. BEC attacks jumped 81% in 2022, and as many as 98% of employees fail to report
the threat.
What is Business Email Compromise (BEC)?
Business Email Compromise (BEC) is a type of scam in which criminals use email fraud to
target victims. These victims include both businesses and individuals. They especially
target those who perform wire transfer payments.
The scammer pretends to be a high-level executive or business partner. Scammers send
emails to employees, customers, or vendors. These emails request them to make payments
or transfer funds in some form.
According to the FBI, BEC scams cost businesses around $1.8 billion in 2020. That figure
increased to $2.4 billion in 2021. These scams can cause severe financial damage to
businesses and individuals. They can also harm their reputations.
How Does BEC Work?
BEC attacks are usually well-crafted and sophisticated, making it difficult to identify them.
The attacker first researches the target organization and its employees. They gain
knowledge about the company’s operations, suppliers, customers, and business partners.
Much of this information is freely available online. Scammers can find it on sites like LinkedIn, Facebook, and organizations’ websites. Once the attacker has enough information, they can craft a convincing email. It's designed to appear to come from a high-level executive or a business partner.
The email will request the recipient to make a payment or transfer funds. It usually
emphasizes the request being for an urgent and confidential matter. For example, a new
business opportunity, a vendor payment, or a foreign tax payment.
The email will often contain a sense of urgency, compelling the recipient to act quickly.
The attacker may also use social engineering tactics. Such as posing as a trusted contact or
creating a fake website that mimics the company's site. These tactics make the email seem
more legitimate.
If the recipient falls for the scam and makes the payment, the attacker will make off with the funds. In their wake, they leave the victim with financial losses.
How to Fight Business Email Compromise
Educate Employees
Organizations should educate their employees about the risks of BEC. This includes providing training on how to identify and avoid these scams. Employees should be aware of the tactics used by scammers. For example, urgent requests, social engineering, and fake websites.Enable Email Authentication
Organizations should implement email authentication protocols.Deploy a Payment Verification Process
Organizations should deploy payment verification processes, such as two-factor authentication. Another protocol is confirmation from multiple parties. This ensures that all wire transfer requests are legitimate. It’s always better to have more than one person verify a financial payment request.Check Financial Transactions
Organizations should deploy payment verification processes, such as two-factor authentication. Another protocol is confirmation from multiple parties. This ensures that all wire transfer requests are legitimate. It’s always better to have more than one person verify a financial payment request.Establish a Response Plan
Organizations should establish a response plan for BEC incidents. This includes procedures for reporting the incident. As well as freezing the transfer and notifying law enforcement.Use Anti-phishing Software
11 Businesses and individuals can use anti-phishing software to detect and block fraudulent emails. As AI and machine learning gain widespread use, these tools become more effective. The use of AI in phishing technology continues to increase. Businesses must be vigilant and take steps to protect themselves.Need Help with Email Security Solutions?
