What is a Business Email Compromise scam?
A Business Email Compromise (BEC) scam is a type of cyber-attack where a fraudster is able to get access to a company’s email system and uses that access to commit fraud. The scam typically involves impersonating an executive or vendor of the company to trick employees into transferring money, obtaining gift cards, or providing sensitive information. BEC scams involve sophisticated social engineering tactics and impersonation scams, including artificial intelligence (AI) deepfakes, which can cause significant financial losses or reputational damages for the targeted company. These scams are often hard to spot because they rely on sophisticated impersonations, exploiting trust, established relationships, and authority within the company. It’s important for both employees and businesses to be aware of the signs of a BEC scam in order to protect themselves from becoming victims.
Common tactics used in Business Email Compromise scams
Incidents of Business Email Compromise (BEC) scams are on the rise, and it’s important to be able to spot the tactics that are often used in these types of scams. One of the most common things an attacker will do is impersonating a high-level executive or supplier within the company. This involves the scammer sending an email that appears to be from a CEO or CFO, asking the employee to process a financial transaction or transfer funds. Another tactic is using social engineering to gather information about the company and its employees. Scammers may research the company’s hierarchy, suppliers, and vendors to make their phishing emails appear legitimate. Additionally, BEC scammers often use urgency and pressure tactics to manipulate the recipient into acting quickly without verifying the legitimacy of the request. Companies should educate their employees about these tactics and implement strong email security measures and business practices to prevent falling victim to BEC scams.
Red flags to watch for
When it comes to spotting a Business Email Compromise (BEC) scam, it is crucial to pay close attention to these red flags in the emails you receive:
- Watch for suspicious email addresses that may have slight variations from the legitimate ones, such as using “rn” instead of “m” in the domain name.
- Be wary of unusual requests for urgent action or unusual payment methods. Scammers often use pressure tactics to manipulate victims into making quick decisions without verifying the authenticity of the request.
- Scammers impersonating someone may say that their email is the only way they can be reached or may make excuses for why you shouldn’t contact them another way.
- Look for poor grammar or spelling mistakes in the email content.
Take the time to carefully review any emails that raise suspicion and always verify payment requests through a separate communication channel, such as a phone call to the requesting party.
Verification of payment instructions
When receiving an email requesting a change in payment instructions or requesting payment to a new or unfamiliar account, it is crucial to verify the legitimacy of the request. This type of request is a common tactic used in Business Email Compromise (BEC) scams, where the scammer impersonates a legitimate business such as a vendor. To spot this type of scam, it is important to confirm any changes to contact information – and particularly payment instructions – through a secondary form of communication, such as a phone call to a known contact at the organization. Additionally, always double-check the email address and domain of the sender, as scammers often use fake email addresses that closely resemble those of legitimate businesses. Taking these steps to verify payment instructions can help prevent falling victim to a BEC scam and protect the financial security of your business.
The importance of double-checking before taking action
Business Email Compromise (BEC) scams are becoming increasingly sophisticated, making it crucial for individuals and businesses to take a minute and double-check the situation before taking any action. Scammers usually impersonate company executives or partners to add some authority to their urgency, making it easier deceive recipients into making quick financial transactions or sharing sensitive information. Taking the time to carefully review the details of an email, verifying the sender’s email address and any unusual requests, employees can reduce the risk of falling victim to these scams. It’s also important to verify any changes to payment instructions or wire transfer details directly with the individual or company involved, rather than relying solely on email communication. More sophisticated scammers will use a two-phased approach, first changing the contact information and later changing the payment information. That way, if you try to verify the change, the scammer has already updated the contact information, ensuring they are able to get the verification. Being diligent in double-checking can save individuals and businesses from significant financial loss and reputational damage.
Train employees to recognize potential scams
Business Email Compromise (BEC) scams are becoming more sophisticated and harder to spot. Businesses must train their employees on how to spot the warning signs of a potential scam or impersonation attempt. This includes educating them on common tactics used by scammers, such as spoofed email addresses or urgent requests for fund transfers. By providing regular training and raising awareness about the risks of BEC scams, employees can become more vigilant and better equipped to identify suspicious emails. This type of scam often preys on people with access to information and access to technology or financial resources. Therefore, it’s especially important to make sure employees with this type of access or permission have a better understanding of these scams than others. Additionally, businesses should encourage a culture of open communication where employees feel comfortable reporting any suspicious emails or requests to the appropriate authorities. Investing in employee training can ultimately help prevent costly losses due to BEC scams and protect the organization’s financial assets.
Reporting and responding to suspected Business Email Compromise scams
It’s important for individuals and organizations to be able to spot the warning signs and know what to do when they receive these messages. Since these scams often involve a cybercriminal impersonating a company executive or a trusted vendor, it’s crucial to let others in the organization know. If you suspect that you have been targeted by a BEC scam, be sure to report it immediately to your IT department or your company’s security team. Consider also alerting your financial institution and law enforcement to mitigate the impact of the scam. Before an incident, be sure your company has clear communication protocols for verifying information changes and financial requests. More importantly, make sure employees understand and follow those processes. By being vigilant and proactive, individuals and organizations can effectively respond to and prevent Business Email Compromise scams.
Business Email Compromise (BEC) scams are a growing threat, requiring increased vigilance and proactive work to protect against financial loss and reputational damage. Scammers will use many different tactics, such as impersonating high-level executives, using high-pressure, urgent tactics in their emails. To counter these scams, it is essential to train employees to recognize potential scams, promote open communication to report suspicious emails, and implement strong email security measures. Double-checking email details and verifying payment instructions through secondary communication channels can help prevent falling victim to BEC scams. If detected, BEC scams should be reported immediately to the proper authorities. Remember, being diligent and proactive can save businesses from significant financial loss and protect against these sophisticated cyber-attacks. Stay alert, educate yourself and your team, and implement security measures to safeguard your organization against BEC scams.