May 22, 2025
Understanding Business Email Compromise: A Growing Cyber Threat
By: Taryn Wilson, Chief Financial Crimes Officer
Business Email Compromise (BEC) is a sophisticated form of cybercrime targeting companies of all sizes. It involves cybercriminals gaining access to legitimate business email accounts or spoofing them to deceive employees, customers or partners into transferring money or sensitive information.
How BEC Works
BEC attacks typically follow a few common strategies:
- Email Spoofing or Account Takeover: Attackers impersonate a company executive, vendor or trusted partner.
- Social Engineering: Fraudsters craft convincing messages that create urgency – such as a fake invoice or a request to change payment details.
- Financial Fraud: The goal is often to trick employees into wiring funds to fraudulent accounts or disclosing confidential business data.
Common BEC Scenarios
- A “CEO” emails a finance officer requesting an urgent wire transfer.
- A “vendor” asks for payment to a new bank account.
- An “HR manager” requests employee tax forms or personal details.
Why BEC Is Dangerous
Unlike traditional phishing scams, BEC attacks are low-volume but high-impact. They are tailored, often lack obvious red flags and can lead to significant financial losses – often in the thousands or even millions of dollars.
How to Protect Your Business
- Enable Multi-Factor Authentication (MFA): Secure email accounts against unauthorized access.
- Verify Requests: Always confirm payment or sensitive information requests via phone or an alternative communication channel.
- Train Employees: Educate staff to recognize red flags such as urgent requests, unfamiliar bank details or slightly altered email addresses.
- Monitor Financial Transactions: Implement dual control processes for fund transfers.
- Use Email Authentication Protocols: Adopt domain-based verification tools to prevent spoofing.
Business Email Compromise is a serious and growing threat, but with proactive security measures, organizations can significantly reduce their risk. Awareness, training and verification are key tools in defending against this form of cybercrime. For additional information and resources, please refer to our Business Guide on Cybersecurity Awareness.
