In the exciting era of technology, electronic mail, lovingly known as email, has seamlessly woven itself into the fabric of our daily lives, bringing connections and opportunities right to our fingertips! From personal communications to crucial business transactions, email has become an indispensable tool.
Yet, in this fast-paced digital landscape, we must also be mindful of the challenges that come our way. Cybercrime, unfortunately, has seen a rise due to our increasing reliance on technology. One prominent threat, Business Email Compromise (BEC), demands our attention.
But here’s the good news! By staying informed and vigilant, we can shield ourselves against such threats. Knowledge is power, and together, we can create a robust defense to keep our businesses and personal information safe.
Let’s embark on a journey of learning and collaboration. We’ll not only protect ourselves but also raise awareness, ensuring that everyone around us is empowered to recognize and report any potential threats. With this united front, we can stand strong against cyber adversaries.
So, let’s embrace the digital realm with confidence, armed with the tools to recognize and overcome BEC attacks. Together, we’ll build a safer and brighter digital future, where cybercrime’s power diminishes in the face of our collective resilience!
What is Business Email Compromise (BEC)?
Business Email Compromise (BEC) is a type of scam in which criminals use email fraud to target victims. These victims include both businesses and individuals. They especially target those who perform wire transfer payments.
The scammer pretends to be a high-level executive or business partner. Scammers send emails to employees, customers, or vendors. These emails request them to make payments or transfer funds in some form.
According to the FBI, BEC scams cost businesses around $1.8 billion in 2020. That figure increased to $2.4 billion in 2021. These scams can cause severe financial damage to businesses and individuals. They can also harm their reputations.
How Does BEC Work?
BEC attacks are usually well-crafted and sophisticated, making it difficult to identify them. The attacker first researches the target organization and its employees. They gain knowledge about the company’s operations, suppliers, customers, and business partners.
Much of this information is freely available online. Scammers can find it on sites like LinkedIn, Facebook, and organizations’ websites. Once the attacker has enough information, they can craft a convincing email. It’s designed to appear to come from a high-level executive or a business partner.
The email will request the recipient to make a payment or transfer funds. It usually emphasizes the request being for an urgent and confidential matter. For example, a new business opportunity, a vendor payment, or a foreign tax payment.
The email will often contain a sense of urgency, compelling the recipient to act quickly. The attacker may also use social engineering tactics. Such as posing as a trusted contact or creating a fake website that mimics the company’s site. These tactics make the email seem more legitimate.
If the recipient falls for the scam and makes the payment, the attacker will make off with the funds. In their wake, they leave the victim with financial losses.
How to Fight Business Email Compromise
BEC scams can be challenging to prevent. But there are measures businesses and individuals can take to cut the risk of falling victim to them.
Educate Employees
Organizations should educate their employees about the risks of BEC. This includes providing training on how to identify and avoid these scams. Employees should be aware of the tactics used by scammers. For example, urgent requests, social engineering, and fake websites.
Training should also include email account security, including:
- Checking their sent folder regularly for any strange messages
- Using a strong email password with at least 12 characters
- Changing their email password regularly
- Storing their email password in a secure manner
- Notifying an IT contact if they suspect a phishing email
Enable Email Authentication
Organizations should implement email authentication protocols.
This includes:
- Domain-based Message Authentication, Reporting, and Conformance (DMARC)
- Sender Policy Framework (SPF)
- DomainKeys Identified Mail (DKIM)
These protocols help verify the authenticity of the sender’s email address. They also reduce the risk of email spoofing. Another benefit is to keep your emails from ending up in junk mail folders.
Deploy a Payment Verification Processes
Organizations should deploy payment verification processes, such as two-factor authentication. Another protocol is confirmation from multiple parties. This ensures that all wire transfer requests are legitimate. It’s always better to have more than one person verify a financial payment request.
Check Financial Transactions
Organizations should check all financial transactions. Look for irregularities, such as unexpected wire transfers or changes in payment instructions.
If you don’t perform these according to a schedule, it is easy for them to get forgotten. Set up a calendar item for the review of financial transactions. Use a schedule that makes sense for your business and transaction volume.
Establish a Response Plan
Organizations should establish a response plan for BEC incidents. This includes procedures for reporting the incident. As well as freezing the transfer and notifying law enforcement.
Use Anti-phishing Software
Businesses and individuals can use anti-phishing software to detect and block fraudulent emails. As AI and machine learning gain widespread use, these tools become more effective.
The use of AI in phishing technology continues to increase. Businesses must be vigilant and take steps to protect themselves.
Need Help with Email Security Solutions?
It only takes a moment for money to leave your account and be unrecoverable. Don’t leave your business emails unprotected. Give us a call today to discuss our email security solutions.
Abuzz Technologies
Managed IT Services and Support in and around Philadelphia
Phone: 215.600.0349
Email: support@abuzztech.com
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