“Always verify requests for financial transactions, especially if they come from an email, even if the sender appears to be someone you know.”
In the recent times, Business Email Compromise or commonly known BEC has become a major threat to the businesses worldwide. According to the FBI, BEC has been responsible for more than $26 billion losses globally in 2019, and the trend is on the rise. This kind of cyberattack is highly concerning to both cybersecurity professionals and business owners due to its sophistication, complexity, and difficulty in detection. In this blog, we’ll dive into the roots of BEC, how it works, and what are the precautionary measures.
BEC is a type of phishing attack where cybercriminals pretend to be an executive or other high-level employee within an organization in order to dupe staff members, suppliers, or customers into sending money or disclosing personal information. Hackers frequently start an attack by taking over an email account or making a fake email address that looks real. The attacker then requests that the recipient take action in a fake email that appears to be from a reliable source.
Types of Business Email Compromise
There are several types of BEC, including:
- CEO Fraud – In this kind of business email compromise (BEC), cybercriminals pretend to be the CEO of a company in order to persuade staff members to transfer money to an account under their control. In many cases, the email may come from a spoofed email address that appears to be legitimate.
- Attorney Impersonation – In this type of BEC, the attacker poses as a lawyer or other legal professional to trick the victim into sending sensitive information or money to the attacker.
- Invoice Scams – This type of BEC involves the attacker sending a fake invoice to the victim, asking them to transfer funds to a specific account. The email frequently appears to be from a reliable source, so the victim may not realize they have been duped until it is too late.
- Account Compromise – In this type of BEC, the attacker gains access to an employee’s email account and uses it to send fraudulent emails to other employees, vendors, or customers.
How does Business Email Compromise work?
Typically, BEC attacks start with the attacker conducting research on the target company and locating senior executives or other crucial personnel. Once they have identified their target, the attacker may use a variety of tactics to gain access to their email account or create a fake email address that looks legitimate. The attacker then asks the victim to send money to a particular account or divulge sensitive information in a fraudulent email that is sent to them.
In some circumstances, the attacker might employ social engineering strategies to gain the victim’s trust. For example, they may spend weeks or even months sending legitimate-looking emails to the victim before making their fraudulent request. By building trust, the attacker can increase the chances that the victim will fall for their scam.
BEC attacks are often successful because they are difficult to detect. The attacker may use tactics like spoofing a legitimate email address or using a domain name that is similar to the victim’s domain name. To further increase the likelihood that the victim will act without thinking, the attacker may use social engineering strategies to make the email appear urgent.
Why is Business Email Compromise a threat?
BEC attacks are a significant threat to businesses for several reasons:
- Loss of Funds – BEC attacks are designed to steal money from victims. Once the attacker has convinced the victim to transfer money to their account, it can be challenging to recover the funds.
- Reputational damage – If a business falls victim to a BEC attack, it can damage their reputation with customers, vendors, and partners.
- Legal Consequences – Depending on the nature of the attack, a business may face legal consequences if they fall victim to BEC.
How to Prevent BEC Attacks?
While BEC attacks can be challenging to detect and prevent, there are some measures that organizations can take to mitigate the risk. Some of the most effective strategies include:
- Educate Employees on BEC Scams:
The first line of defence against BEC attacks is employee education. Employees should receive training on how to spot shady emails and how to double-check any odd requests, particularly those involving confidential information or financial transactions. The risk of successful BEC attacks can be decreased by providing employees with regular security awareness training that keeps them up to date on the latest strategies used by cybercriminals.
- Implement Multi-Factor Authentication:
Another effective defence against BEC attacks is the use of multifactor authentication (MFA). MFA mandates that users enter two or more forms of identification in order to access their accounts, such as a password and a security token or a biometric verification. By doing this, there is a significantly lower chance of systems like email accounts being compromised.
- Use Email Filters and Antivirus Software:
To recognize and block shady emails and attachments, businesses should also implement antivirus software and email filters. Emails that contain malicious software or phishing links can be recognized by email filters and blocked. Data theft and other malicious activity are less likely when antivirus software is used to detect and eliminate malware from infected systems.
- Establish Clear Policies and Procedures:
Organizations should establish clear policies and procedures for handling sensitive information and financial transactions. These policies ought to outline procedures for confirming requests, restricting access to private data, and disclosing unusual activity. Employees can contribute to ensuring the protection of sensitive information and the legitimacy of financial transactions by adhering to these procedures.
These BEC attacks are a growing threat to organizations of all sizes. Significant financial losses and reputational harm to the company may result from these attacks. Organizations should train employees on how to spot suspicious emails and respond to them, implement multifactor authentication, use email filters and antivirus software, and create clear policies and procedures for handling confidential data and financial transactions in order to prevent BEC attacks.
As cybercriminals continue to develop new tactics and techniques to target organizations, it is essential that businesses take proactive steps to protect themselves.
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