Business Email Compromise (BEC) attacks are one of the most expensive and fastest growing cybercrimes in the world. Contrary to conventional phishing attacks BEC scams are based on impersonation and social engineering and are therefore difficult to spot with standard security tools.
According to reports from global cybersecurity business are losing hundreds of millions every year due to BEC fraud. These attacks affect companies of all sizes, ranging from small start-ups to large corporations that often exploit the trust of their customers, urgency, and insecure email practices.
In this article you’ll discover the basics of what business email Compromise threats are, and the way they operate and, most importantly, how to avoid being the victim.
What Is a Business Email Compromise (BEC) Attack?
The Commercial Email Compromise (BEC) attack is a form of cybercrime that involves attackers taking on the appearance of an official, trusted employee vendor, business partner in order to fool victims into transferring money or revealing sensitive information.
Contrary to mass phishing attacks, BEC attacks include:
-
Highly targeted
-
It is important to do your research
-
Most of the time, there is no malware or harmful hyperlinks
This makes them highly powerful and hard to detect.
Common Types of Business Email Compromise Attacks
Learning about the most popular BEC attack strategies can be the very first stage towards the prevention.
1. CEO or Executive Impersonation
The attackers pose as CFO, CEO or a senior executive, and demand urgent transfers of funds, or the transfer of sensitive information.
2. Vendor or Supplier Fraud
Hackers can compromise or alter the email address of a vendor, and then send fraudulent invoices or bank details that have been updated.
3. Payroll and HR Scams
Attackers pose as employees and ask for direct change in deposit or tax information.
4. Account Compromise
A legitimate email account for employees is compromised and utilized to request fraud-related transactions within the company.
Warning Signs of a Business Email Compromise Attempt
BEC attacks typically include subtle warnings, like:
-
Requests for confidential or urgent assistance
-
Misspellings of a few letters in emails or domains
-
Requests to bypass approval processes normally used
-
Modifications to payment instructions
-
The pressure to act swiftly without confirmation
Instructing employees to spot the warning signs is crucial.
How to Avoid Being the Victim of a Business Email Compromise Attack
1. Implement Multi-Factor Authentication (MFA)
Multi-factor authentication provides a crucial security layer for email accounts. In the event that login information get lost, MFA prevents unauthorized access.
Best technique: Enable MFA for all financial, email or administrative accounts.
2. Verify Payment and Bank Detail Changes
Never accept any modifications to payment instructions sent via email on their own.
What can you do instead:
-
Verify your requests by using a verified phone number
-
You must obtain a second approval for financial transactions
-
All verification procedures must be documented.
3. Train Employees on BEC Awareness
First line defense for employees is BEC attacks.
Training that is effective should comprise:
-
Real-world BEC examples
-
Social engineering techniques
-
Reporting procedures for suspicious emails
A regular cybersecurity education significantly lowers the risks.
4. Use Email Security and Anti-Spoofing Controls
Controls on technology help stop attempts to impersonate.
Essential security measures for emails include:
-
SPF (Sender Policy Framework)
-
DKIM (DomainKeys Identified Mail)
-
DMARC (Domain-based Message Authentication)
These protocols stop hackers from spoofing your domain.
5. Enforce Strong Internal Approval Processes
Make clear the procedures to:
-
Wire transfers
-
Vendor payments
-
Payroll adjustments
A single employee shouldn’t be able to approve transactions that are high-risk.
6. Monitor and Audit Email Activity Regularly
Unusual time of login, location or forwarding rules could be a sign of account compromise.
Audits that are regularly conducted should be looking for:
-
Unauthorized rules for mailboxes
-
Suspicious login attempts
-
IP addresses that are not recognized
7. Limit Public Exposure of Executive Information
Attackers frequently research executives via social media and on company websites.
Reduce risk by:
-
Limiting the number of email addresses available to the public
-
Avoiding the need for excessive details about your organization online
-
Educating executives on social engineering risks
8. Establish a Clear Incident Response Plan
If there is a suspicion of a BEC incident is suspect, swift intervention is essential.
A response program should contain:
-
Freezing affected accounts
-
Calling your bank right away
-
Conserving evidence of emails
-
Notifying the legal and IT teams.
The quicker you react to a request, the better chances of recovering the funds.
What to Do If Your Business Falls Victim to a BEC Attack
If you think your company may have been compromised, follow these steps:
-
Make contact with your bank immediately
-
Change compromised account credentials
-
Inform your security and IT teams.
-
Inform the relevant authorities
-
Review and enhance security controls
Delays can significantly diminish chances of recovering.
Final Thoughts: Preventing Business Email Compromise Is a Shared Responsibility
Businesses Email Compromise attacks are successful because they take advantage of the trust of people and processing weaknesses and not only technical weaknesses. In order to prevent them, it is necessary to take advantage of:
-
Education of employees
-
Strong email security
-
Clear verification procedures
-
Executive awareness
By taking a proactive approach now, your company can greatly reduce its exposure towards one of the more harmful cyber-attacks that threaten modern businesses.
