Are you protecting your organization against business email compromise (BEC) and fraud? These cyberattacks aren’t just a possibility — they are something your company is highly likely to face, and attacks are only getting more sophisticated.
A recent report found 70% of organizations experienced attempted BEC attacks in 2023, and 29% said they were victims of one or more successful BEC occurrences.
Keep reading to learn more about business email compromise (including CEO fraud, fake invoices, and employee errors) and BEC prevention strategies to help reduce the likelihood of a successful attack.
Business email compromise (BEC) is a sophisticated form of cybercrime where attackers impersonate a legitimate company or contact to manipulate or deceive employees, partners, or vendors into transferring funds or sharing sensitive information. These attacks typically involve careful social engineering tactics, where the attacker studies the target organization’s communication patterns and relationships. Once they have enough information, they send fraudulent emails that appear to come from a trusted source, such as a CEO, CFO, or a key vendor. These emails often contain urgent requests for wire transfers, payment redirections, or the sharing of confidential data, making it difficult for employees to detect the fraud.
The impact of BEC can be devastating, leading to significant financial losses, legal liabilities, and damage to a company’s reputation. Unlike other types of cyberattacks that might rely on malware or technical exploits, BEC preys on human trust and the natural flow of business communications, making it harder to prevent with traditional security measures alone.
Businesses are increasingly adopting advanced email security solutions, employee training programs, and multi-layered verification processes to combat BEC. By understanding the methods and risks associated with BEC, companies can better protect themselves from these highly targeted and potentially costly attacks.
BEC poses a serious threat to B2B payments because it exploits trust within established business relationships and targets one of the most common communication methods.
In a BEC attack, cybercriminals may impersonate key personnel or vendors to deceive employees into making unauthorized payments or changing payment details (like routing payments to a fraudulent account set up by the hacker). These fraudulent transactions can result in substantial financial losses, as large sums of money are often transferred in B2B payments.
According to the FBI, the cost of BEC continues to rise each year. Businesses lost $446,100,000 because of BEC attacks in 2022 — up from $430,500,000 reported in 2021 and $258,400,000 reported in 2020.
Beyond the immediate financial impact, BEC can also have long-term negative effects on a company’s reputation and operational efficiency. When a business falls victim to a BEC scam, it may erode trust with partners and vendors, who may question the company’s ability to secure sensitive information and financial transactions. This loss of trust can lead to damaged relationships, reduced business opportunities, and increased scrutiny from regulatory bodies. Additionally, the time and resources required to investigate and recover from a BEC incident can disrupt normal operations and divert attention away from core business activities.
What are the most common types of BEC? Protect your business from sophisticated cyber threats by understanding the kinds of threats you are likely to face. By recognizing these tactics, you can better safeguard your company’s communications and payment processes.
Company leadership can often make changes or request funds without raising flags. Attackers may impersonate high-ranking executives, such as CEOs or CFOs, to authorize fraudulent wire transfers or request sensitive information. Employees may feel pressured to act quickly due to the apparent authority of the sender, making this tactic highly effective.
Gaining access to legitimate employee email accounts means attackers can request payments or sensitive data from other employees, vendors, or clients. Because the emails come from a trusted source, they are often difficult to detect as fraudulent, leading to successful compromises.
Cybercriminals send forged invoices that appear to be from legitimate vendors, tricking accounts payable departments into making payments to fraudulent accounts. These invoices often mimic real billing details and may be sent from email addresses that closely resemble those of trusted suppliers. This could include sending duplicate invoices or sending fraudulent invoices for goods or services that weren’t provided by any vendor.
While prevention is a crucial part of a solid security strategy, you also need to know how to catch questionable emails before they can cause damage. BEC detection is essential for preventing financial losses and protecting the integrity of your B2B payment processes. Early detection allows businesses to intercept fraudulent activities before they can cause significant harm.
Teach your team how to spot suspicious emails. Look for inconsistencies in email addresses, such as slight misspellings or unexpected changes in domain names, which can indicate a fraudulent sender. Unusual requests for urgent payments, changes to payment instructions, or breaking typical protocol should also be treated with caution, as they are common tactics in BEC scams.
BEC prevention can be as simple as asking yourself, “Would the CEO really ask me to do this?” Or even, “How can I double-check that this is a legit request?” Pay attention to unusual communication patterns, such as a sudden change in tone or style from a known contact, or requests that ask you to bypass standard procedures. An executive demanding a wire transfer outside of normal business hours or without prior notice is a behavioral red flag that warrants further verification.
Use email security tools that flag suspicious activity, such as emails sent from unrecognized IP addresses or devices. Monitoring for anomalies in email headers or encrypted communication can help detect BEC attempts, as attackers often bypass traditional security checks by manipulating technical aspects of email transmission.
5 Business Email Compromise Prevention Strategies
How can you best combat BEC? BEC prevention means implementing these strategies effectively to reduce the risk of falling victim to sophisticated email scams that can be costly to your company.
Implement robust verification processes with tools like the Trustmi Trust Network to verify your vendors. Require multiple approvals for wire transfers and use secure channels for confirming payment instructions to help prevent unauthorized transactions. Businesses should ensure that these processes are clearly defined and consistently followed, with all employees aware of the steps needed to verify the legitimacy of payment requests.
Verifying a bank account exists and validating that it also belongs to the right party are two different things. You need to ensure you have a process in place to validate every vendor before making payments.
People are typically the weakest link in cybersecurity. Even those with the best intentions may not be up to speed on best practices or might cut corners trying to find efficiencies. It’s important to have regular training in place to educate employees on topics like BEC threats, including how to identify phishing attempts and social engineering tactics. Training should be tailored to different roles within the organization, ensuring that everyone understands their part in maintaining email security and knows how to respond to potential BEC scenarios.
A haphazard approach to vendor relationships can leave a gap in your security setup. Businesses should establish strong vendor management practices, including verifying vendor contact information regularly and using secure methods for communication. Consider implementing automated tools to manage vendor relationships, track changes, and flag suspicious activities to reduce the risk of BEC through compromised or impersonated vendor accounts.
Investing in the right tools can help your company combat everchanging cyber threats. Deploy advanced technology solutions, such as AI-driven email filters and anomaly detection systems, to monitor for signs of BEC and other email-based threats. Companies should regularly update and integrate these tools into their broader security infrastructure to ensure they stay ahead of hackers and increasingly sophisticated BEC tactics.
Preventing email compromise and fraud is critical for safeguarding your company's financial health and reputation. Trustmi offers advanced B2B payment solutions designed to protect your business from sophisticated email-based threats. With cutting-edge technology and comprehensive fraud detection tools, Trustmi helps you secure your B2B payment processes, ensuring that every transaction is safe and verified.
Don’t leave your business vulnerable. Reach out to Trustmi today to learn how our solutions can protect you from BEC and other forms of payment fraud.
Let us help you secure your future with confidence.
Stay connected by signing up to our mailing list.
We promise not to spam :)
.png)
