A Business Email Compromise (BEC) attack is a type of cyber fraud targeting companies that conduct wire transfers and have suppliers abroad. This attack involves cybercriminals gaining access to an official email account or creating a convincingly fake one. They use this access to perform unauthorized fund transfers or obtain confidential information by impersonating company officers or trusted partners.

In a BEC attack, you might receive an email that looks like it’s from your boss, a colleague, or a vendor you regularly deal with. The email usually instructs you to wire funds for what seems to be a legitimate business reason, such as settling an invoice. However, the bank details provided for the wire transfer belong to the attacker. Alternatively, the email could ask you to provide sensitive company information, which can be used for further fraud.

BEC Relies on Social Engineering Techniques

BEC attacks rely heavily on social engineering techniques. Attackers spend significant time researching your company’s vendor relationships, billing systems, and the communication habits of team members who handle payments. This preparation helps them craft emails that are hard to distinguish from legitimate business communications.

To protect yourself from BEC attacks, always verify payment and information requests directly through known and trusted communication channels. Be wary of sudden changes in business practices or payment details, and implement dual-factor authentication and verification processes for financial transactions. Training employees to recognize the signs of BEC and other phishing attempts is also crucial. Given that BEC scams have led to billions of dollars in losses globally, taking these precautions is not just advisable; it’s imperative for safeguarding your business assets.

The Hidden Cost of Business Email Compromise (BEC)

Business Email Compromise (BEC) has swiftly become one of the most financially damaging online crimes. It exploits the fact that so many of us rely on email to conduct business—both personal and professional. In these scams, attackers focus not on technology but on manipulating individual behaviour to achieve their fraudulent goals.

According to the FBI’s Internet Crime Report, BEC scams accounted for over $1.7 billion in losses, which is nearly half of all losses reported from cybercrimes that year. This staggering amount underscores the effectiveness of BEC attacks, which typically involve deceiving staff into making wire transfers or providing sensitive information under the guise of legitimate business requests.

What Makes Business Email Compromise (BEC) Successful

One of the reasons BEC attacks are so successful is their reliance on careful preparation by the attackers. They often involve deep reconnaissance where the attackers study their targets, learning the nuances of their transactions and relationships. This preparation enables them to craft highly convincing emails. For example, they might mimic the writing style of your CEO asking you to wire funds urgently for a confidential deal.

Protect yourself by verifying all email requests for funds or sensitive information through a secondary communication channel, such as a phone call or face-to-face conversation. Be especially cautious if the request involves urgency or deviation from normal procedures. Implementing company-wide security protocols for confirming the legitimacy of requests can significantly reduce the risk of falling victim to these scams.

Recognizing the sophisticated nature of BEC scams is essential. Stay informed and vigilant. Each decision to double-check a request for money or data could save you millions.

How Does It Work?

A Business Email Compromise (BEC) attack targets companies primarily through the use of sophisticated email fraud. It starts when an attacker gains access to a corporate email account or creates a convincingly similar one. This attack method primarily relies on human psychology rather than technological vulnerabilities.

Here’s how it typically unfolds: first, the attacker researches your company to identify key personnel in finance or related roles who handle money transfers. They gather enough information about your company’s structure, billing cycles, and vendors to convincingly impersonate employees or trusted partners.

The Hacker Crafts An Email

Once they have this information, the attacker crafts an email that mirrors the tone, language, and format of communications usually seen within the company. This email might appear to come from the CEO, CFO, or a trusted vendor. It will likely direct you to urgently wire funds for what appears to be a legitimate business reason, such as completing a confidential transaction. The provided payment details direct funds to the attacker’s account.

To execute a BEC attack, attackers may also exploit email rules by setting forwards to monitor communications without raising alarms. This allows them to intercept additional information and craft more convincing follow-up emails if the initial attempt does not succeed.

To defend against BEC attacks, always verify financial requests via another communication method, such as a phone call, especially if they deviate from normal procedures. Be skeptical of any email that pressures you to act quickly or secretly. Implement advanced security measures like two-factor authentication and ongoing training to recognize and respond to BEC tactics.

How To Recognize BEC In Your Emails?

Spotting a Business Email Compromise (BEC) attack requires vigilance and an understanding of common indicators. Here are key signs to watch for:

Urgency and Secrecy

BEC emails often create a sense of urgency or pressure you into acting quickly. The message might insist on bypassing standard procedures or request confidentiality. Such tactics are designed to rush you into making mistakes. Take your time to review the email. Verify any urgent financial requests directly with the requester through another communication method, like a phone call, especially if the request seems unusual or requires bypassing normal procedures.

Unusual Sender Email Address

Check the sender’s email address closely, even if the name appears correct. Attackers often use email addresses that are similar to known addresses but include small, easy-to-miss alterations, such as ‘rn’ instead of ‘m’ or ‘.co’ instead of ‘.com’. Always compare the email address to previous correspondence to spot discrepancies.

Changes in Payment Details

A common red flag in BEC scams is sudden changes to bank account details for invoice payments. If an email claims that a vendor has changed their payment information, verify this directly with the vendor using a phone number or email address you know is genuine, not those provided in the potentially fraudulent email.

Poor Grammar and Odd Phrasing

While some BEC attacks are sophisticated, many still contain language errors or phrases that don’t quite fit the supposed sender’s usual style. If an email from a colleague or a regular contact doesn’t sound like them, or contains unusual grammar, it’s worth double-checking.

Attachments or Links

If an unexpected email from a senior executive or colleague comes with an attachment or a link, proceed with caution. BEC attackers may use malware-laden attachments or links to steal further information. Verify the authenticity of the email before opening any attachments or clicking on any links.

By keeping these points in mind and maintaining a protocol for verifying unusual requests, you can significantly reduce the risk of falling victim to a BEC attack. Always stay alert and question anything that seems out of the ordinary.

Best Practices To Follow

To effectively defend against Business Email Compromise (BEC) attacks, you need to implement stringent security protocols and maintain a high level of awareness among your team. Here are the best practices:

Verification Protocols

Establish strict protocols for verifying all requests for funds transfer or confidential information, especially changes in payment details or urgent financial requests. Use known contact information to verify these requests via a secondary communication method, such as a phone call or an in-person meeting. Do not use the contact details provided in the suspicious email.

Awareness Training

Conduct regular training sessions with your employees about the dangers of BEC and the tactics commonly used by attackers. Include real-life scenarios and recent examples of BEC attempts to help employees recognize potential threats. Reinforce the importance of questioning unusual requests and verifying through independent means.

Multi-factor Authentication (MFA)

Enable MFA for all email accounts and financial systems. This adds an additional layer of security, making it more difficult for attackers to gain unauthorized access even if they have compromised email credentials.

Email Security Solutions

Implement advanced email security solutions that include features like anti-phishing filtering, link protection, and anomaly detection. These tools can help identify and quarantine suspicious emails before they reach the intended recipients.

Incident Response Plan

Develop and maintain a robust incident response plan specific to BEC attacks. This plan should outline the steps to take when a suspected attack is detected, including how to contain the attack, assess the impact, and notify affected parties. Regularly review and update the plan to adapt to new threats.

What to Do When Under a BEC Attack?

If you suspect a BEC attack, act immediately to minimize damage:

• Alert your IT or cybersecurity team to begin an investigation.
• If a transaction has been made, contact the bank immediately to stop the transfer.
• Notify all relevant parties within the organization to be on alert for further suspicious activities.
• Preserve all evidence, including emails and logs, for investigation and potential legal actions.

By staying vigilant and prepared, you can significantly reduce the risk of falling victim to a BEC attack.

Essential Practices to Counter Business Email Compromise Attacks

In the face of rising Business Email Compromise (BEC) attacks, protecting your business isn’t just about implementing technology—it’s about cultivating vigilance and preparedness. BEC scams, which cleverly manipulate the trust you place in digital communications, can lead to substantial financial losses and damage to your business’s reputation.

You hold the power to shield your operations from these deceptions. By setting up robust verification protocols for all financial transactions and sensitive communications, you prevent unauthorized access and transactions. Make it a standard practice to double-check everything, especially when requests deviate from normal procedures or seem unusually urgent.

Invest in Data Security Awareness

Investing in your team’s data security awareness is equally crucial. Regular training sessions not only keep everyone up-to-date on the latest security threats but also reinforce a culture of security. Remember, the more knowledgeable your team, the stronger your business’s defences.

Implementing multi-factor authentication for email and financial systems adds another layer of security, complicating efforts by attackers to gain unauthorized access. This simple step can be the barrier that keeps your assets safe.

Finally, having a clear, actionable incident response plan ensures that if an attack occurs, you can react quickly and effectively to mitigate its impact. This readiness minimizes potential losses and helps in the swift recovery of your operations.

Take these steps seriously and integrate them into your daily business processes. Your proactive efforts today are crucial investments in securing your future against sophisticated cyber threats.

FAQs

1. What is a Business Email Compromise (BEC) attack?
A Business Email Compromise (BEC) attack is a type of phishing where a cyber attacker impersonates a high-ranking company official or a trusted vendor to extract money transfers, sensitive company information, or access credentials from unsuspecting employees.

2. How can I identify a BEC attack?
BEC attacks often involve unexpected email requests for urgent wire transfers or confidential information sharing. Look for unusual language, requests that deviate from normal procedures, and any changes in payment details. Always verify such requests directly with the sender through a known and trusted communication method.

3. What should I do if I suspect an email is part of a BEC scam?
Do not respond to or act on the request directly. Verify the request by contacting the purported sender via a phone call using a number you know to be genuine. Notify your IT or security team immediately to investigate further.

4. How can organizations protect themselves from BEC attacks?
Organizations should implement stringent security protocols, including two-factor authentication on email and financial accounts, regular security training for all employees, and advanced email filtering technology. Establishing a verification process for financial transactions and sensitive requests is also crucial.

5. What are the immediate steps to take if my organization falls victim to a BEC attack?
Immediately contact your financial institution to stop any fraudulent transactions. Report the incident to your local law enforcement or cybercrime unit. Conduct a security audit to understand how the breach occurred and take steps to strengthen security measures to prevent future attacks.