Business E-mail Compromise: How to Stop This Billion-Dollar Scam
Business e-mail compromise (BEC) isn’t just another cyberthreat—it’s one of the most financially devastating scams businesses face today. And with AI-driven tools making these attacks more convincing than ever, the risks are only increasing.
In 2023 alone, BEC scams caused $6.7 billion in losses worldwide. Worse yet, incidents surged 42% in early 2024 compared to the previous year. If you’re not taking this threat seriously, it’s only a matter of time before your business is targeted.
What Is Business E-mail Compromise (BEC)?
BEC attacks go beyond typical phishing scams. These highly targeted cyberattacks exploit compromised or spoofed e-mail accounts to manipulate employees, partners, or vendors into sharing sensitive information or transferring funds.
Unlike traditional phishing, BEC scams don’t rely on suspicious links or malware that can be caught by security filters. Instead, they take advantage of human psychology—trust, urgency, and authority—to trick victims into making costly mistakes.
Why Are BEC Scams So Dangerous?
The reason BEC attacks are so effective? They exploit human trust rather than technical vulnerabilities. The fallout can be severe:
- Financial Losses: The average loss per BEC attack exceeds $137,000, with little chance of recovering stolen funds.
- Operational Disruption: These scams can freeze business operations, forcing companies into damage control mode.
- Reputational Damage: If client data is compromised, how do you explain the breach to them?
- Loss of Employee Confidence: If a company falls victim to BEC, employees may feel less secure in their own roles.
The Most Common BEC Scams to Watch Out For
Cybercriminals have gotten creative with BEC attacks, using different tactics to trick businesses. Here are the most common:
- Fake Invoices: A hacker impersonates a vendor and sends a seemingly legitimate invoice for payment.
- CEO Fraud: Attackers pose as an executive, pressuring employees to send urgent wire transfers.
- Compromised E-mail Accounts: A legitimate e-mail account is hacked and used to send fraudulent requests.
- Vendor Impersonation: Scammers pretend to be trusted third-party vendors, making fraudulent requests seem routine.
How to Protect Your Business from BEC Attacks
The good news? With the right strategy, you can stop BEC scams before they hit your business.
1. Train Your Team Like It’s Game Day
- Teach employees to scrutinize emails labeled “urgent” or containing unusual payment requests.
- Require verbal confirmation for any financial transactions.
- Encourage a culture of skepticism—when in doubt, verify!
2. Enforce Multifactor Authentication (MFA)
MFA adds an extra layer of security, ensuring that even if a hacker steals a password, they still can’t access sensitive systems. Enable it on all business-critical accounts, especially for email and financial platforms.
3. Test Your Backups—Don’t Assume They Work
A BEC attack can lead to data loss. Regularly test your backups to ensure they’re functional and accessible in an emergency.
4. Lock Down E-mail Security
- Use advanced e-mail filtering to block phishing attempts.
- Audit employee permissions and restrict access to sensitive data.
- Disable automatic forwarding rules to prevent compromised accounts from secretly rerouting messages.
5. Verify Every Financial Request
Any time a financial request comes in—especially via email—verify it using a secondary communication channel (such as a phone call) before proceeding.
Next Steps for Strengthening Security
Cybercriminals are evolving, but you don’t have to be their next victim. By training your team, locking down email security, and enforcing verification protocols, you can turn your business into a fortress against BEC scams.
Let’s Lock Down Your Business
Want to ensure your company is protected against BEC and other cyberthreats? Start with a FREE Network Assessment. We’ll uncover vulnerabilities, secure your systems, and make sure hackers don’t stand a chance.
Click here to schedule your FREE Network Assessment today!
Let’s stop BEC in its tracks—before it stops your business.
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