Email is the go-to tool for team collaboration and client communication, but it comes with its own set of risks. A single weak link in your email security could give cybercriminals the keys to your business’s most valuable assets.
One of the most dangerous email threats businesses need to be aware of is business email compromise (BEC) — a fast-growing cybercrime that preys on unsuspecting organizations.
What is business email compromise (BEC)?
BEC attacks involve a scammer impersonating an executive, an employee, or a vendor to deceive others into performing fraudulent actions, typically involving the transfer of money and/or sensitive information. These attacks come in many forms, such as:
- CEO fraud: Attackers impersonate high-level executives, usually via official-looking email, to trick employees into authorizing large financial transfers or confidential actions. These emails often pressure employees into acting quickly without questioning the request.
- Account compromise: Hackers infiltrate an employee’s email account, observe internal conversations, and send deceptive messages. Because the emails appear to come from a legitimate source, recipients are more likely to be tricked by the scam.
- Fake invoice scams: Fraudsters impersonating third-party vendors send fake invoices with altered payment details, tricking employees into paying them instead of the legitimate vendor.
- Data theft: Cybercriminals masquerading as employees request sensitive business data, such as customer records or intellectual property, often under the guise of routine business requests.
- Attorney impersonation: Scammers pose as legal representatives to demand urgent financial actions or confidential information, using legalese to make the request seem authentic.
The growing threat of BEC attacks
BEC scams have evolved. They now involve , now involving elaborate research and targeted deception. Cybercriminals often study a company’s public-facing website or LinkedIn profiles to identify key employees and their roles within the organization.
They may also monitor social media for personal information or recent business activities, which can then be used to craft highly convincing fake emails.
For instance, an attacker masquerading as a company’s CEO on a mission trip to a foreign country may request an urgent wire transfer of funds, citing unforeseen circumstances. Due to the high likelihood of email recipients being manipulated in these attacks, they’re a popular choice for cybercriminals.
What’s worse is that BEC scams can cause massive financial damages, costing businesses as much as $4.9 million per incident. There’s also the potential for sensitive information to be stolen or compromised, resulting in legal and reputational consequences for the organization.
How can businesses defend against BEC attacks?
While the risks posed by BEC attacks are significant, there are several proactive measures businesses can take to reduce the likelihood of falling victim to these scams:
Security training
Cybersecurity awareness training teaches employees how to spot the red flags of potential scams, such as like unusual emails asking for sensitive financial details or updates to account information. Hosting regular training sessions and running phishing simulations can sharpen their awareness and help them detect threats before they cause harm.
Implementing proper payment procedures
Businesses should adopt strict protocols for financial transactions, including multiple approvals for large wire transfers. These protocols can prevent an employee from making an unauthorized payment simply because they received a fraudulent email. Before processing any payments, employees should verify requests directly with the requester through a different communication channel (e.g., phone call or instant message).
Email security tools
Businesses should implement strong email security measures, such as anti-phishing tools and email filters that can flag suspicious messages. These are designed to detect and block malicious emails before they reach employees’ inboxes, greatly reducing the hit rate of BEC scams.
Multifactor authentication (MFA)
With MFA, even if an attacker manages to steal login credentials, they won’t be able to access the account without completing an additional step — usually entering a code sent to a secondary device or providing biometric information (e.g., fingerprints).
Data loss prevention (DLP)
DLP tools scan outgoing emails for potentially risky data — such as financial records, personal information, or proprietary business data — and block them from being sent without authorization. By flagging emails that contain sensitive content, DLP systems prevent critical information from slipping through the cracks and into the hands of cybercriminals.
Prompt incident response
Having a clear and effective incident response plan is essential for minimizing the impact of cyber threats. Employees should know the steps to take when a security issue arises, including notifying the IT or security team immediately. The incident response team must move swiftly to evaluate the situation, neutralize the threat, and minimize potential harm.
Lastly, continuous reviews and refinement of the response plan ensure the organization stays ready to effectively manage future security challenges.
If you need help implementing proven BEC security measures and strategies, predictiveIT is here to assist you. Our team of experts can provide comprehensive risk assessments, employee training, incident response professionals, and cutting-edge defenses to keep your business safe. Contact us now to fortify your security.
