The Business Email Compromise

What is Business Email Compromise (BEC)?

Business Email Compromise (BEC) is a type of cybercrime where attackers manipulate business emails to trick employees into transferring funds, sharing sensitive data, or granting unauthorized access. These scams often involve impersonating executives, vendors, or trusted contacts to gain trust and execute fraudulent activities.

How Does BEC Work?

BEC attacks typically follow these steps:

1. Reconnaissance:

• Attackers research the company, employees, and business processes.
• They gather information from public sources, social media, and previous breaches.

1. Email Spoofing or Account Compromise:

• Cybercriminals use phishing techniques to steal login credentials.
• They may spoof an email address to appear as a trusted sender.

1. Deception and Manipulation:

• Attackers impersonate executives, vendors, or partners.
• They create a sense of urgency, requesting wire transfers, sensitive data, or login details.

1. Execution of Fraudulent Transactions:

• Employees unknowingly comply, transferring funds or sharing confidential information.
• The attackers withdraw funds or misuse the obtained data.

Common Types of BEC Attacks

1. CEO Fraud: Attackers impersonate a company executive, instructing employees to make urgent payments.
2. Invoice Scams: Cybercriminals pose as vendors and request payment to a fraudulent account.
3. Payroll Diversion: Hackers trick HR teams into updating direct deposit details to reroute salaries.
4. Attorney Impersonation: Scammers pretend to be lawyers handling confidential business matters.
5. Data Theft: Attackers target HR or finance departments to steal sensitive employee or customer data.

How to Prevent Business Email Compromise?

✔️ Enable Multi-Factor Authentication (MFA) to secure email accounts.
✔️ Verify Payment Requests via phone calls or in-person confirmations.
✔️ Educate Employees on recognizing phishing emails and suspicious requests.
✔️ Monitor Email Traffic for anomalies like login attempts from unusual locations.
✔️ Implement Email Security Measures such as SPF, DKIM, and DMARC authentication.
✔️ Limit Publicly Available Information about executives and financial transactions.

What to Do If You’re a Victim of BEC?

✅ Report the incident to IT/security teams immediately.
✅ Notify your bank to attempt a transaction reversal.
✅ Alert law enforcement and cybersecurity agencies.
✅ Change affected passwords and strengthen security settings.
✅ Educate employees to prevent future incidents.