On the rise: Business email compromise

What is business email compromise (BEC)?

Business email compromise (BEC) is a type of cybercrime in which attackers use email fraud to deceive organizations into transferring funds or disclosing sensitive information. These attacks typically involve impersonating executives, business partners, or vendors through email spoofing or compromised accounts. Unlike traditional phishing attacks, BEC does not rely on malware or malicious links but rather on social engineering to manipulate targets. Advanced phishing protection plays a crucial role in preventing BEC by detecting suspicious emails and safeguarding user accounts from cybercriminals who employ phishing tactics.

BEC attacks have become one of the most financially damaging cyber threats, with global losses reaching billions of dollars annually. Cybercriminals often spend weeks or months researching their targets, understanding internal business processes, and crafting highly convincing fraudulent emails to exploit human error. Organizations must adapt their security strategies to counteract emerging threats that integrate advanced technologies and social engineering tactics.

How coes BEC work?

BEC attacks typically follow a structured pattern:

1. Target research and reconnaissance: Attackers gather publicly available data about the organization, including key executives, suppliers, and financial transaction workflows. This research may involve scraping company websites, social media, or business directories.

2. Email spoofing or account compromise: Attackers either spoof an email domain to appear as a trusted sender or gain direct access to an employee’s email account through phishing or credential stuffing, exploiting the vulnerability of these accounts, especially those in finance-related roles. Learn more about email spoofing and how to prevent it.

3. Social engineering and deception: The fraudulent email is carefully crafted to appear legitimate. Attackers may create a sense of urgency, instructing the recipient to bypass standard procedures to complete a wire transfer or share confidential data. Explore how social engineering works and how to defend against it.

4. Execution of fraudulent transactions: The victim follows the fraudulent instructions, unknowingly transferring funds to an attacker-controlled account or sharing critical information that can be exploited further. These funds are often redirected to fraudulent bank accounts, impacting multiple businesses associated with the compromised account.

5. Evasion and cover-up: Attackers may delete email traces, set up auto-forwarding rules to monitor email threads, or launch additional attacks using compromised accounts to avoid detection.

Common types of BEC attacks

BEC attacks, or business email compromise scams, take different forms, depending on the attackers’ objectives and the organization’s vulnerabilities. These scams exploit social engineering techniques to deceive individuals into transferring money or sensitive information. The most common variations include:

• CEO or executive impersonation: Attackers pose as high-ranking executives and instruct employees to execute urgent wire transfers or share sensitive data.

• Vendor or supplier fraud: Cybercriminals impersonate suppliers or business partners, sending fake invoices with altered bank account details to divert payments. This is often referred to as a false invoice scheme, where scammers closely mimic actual invoices with minor modifications to deceive the recipient.

• Payroll fraud: Attackers impersonate employees and request HR or finance departments to update payroll details, redirecting salaries to fraudulent accounts.

• Attorney or legal representative impersonation: Fraudsters pretend to be legal advisors or external consultants, pressuring employees into making financial decisions under the guise of confidentiality.

• Account takeover (ATO): Attackers compromise an employee’s email account and use it to launch internal fraud attempts or request payments from partners and customers.

Why BEC is so effective

BEC attacks succeed due to a combination of psychological manipulation, trust exploitation, and technical deception. Several factors contribute to their effectiveness:

• Appearing trustworthy: Emails are designed to look authentic, often mimicking writing styles and formatting from legitimate senders.

• Exploiting urgency: Fraudulent emails frequently create a sense of urgency, pressuring recipients to act quickly without verifying details.

• Bypassing traditional security measures: Since BEC emails often lack malware or malicious links, they can evade standard spam and phishing filters. Implementing domain-based message authentication protocols like DMARC, SPF, and DKIM can help prevent email spoofing.

• Leveraging existing business processes: Attackers exploit standard payment and approval workflows, making their fraudulent requests appear legitimate. Safeguarding personal details and monitoring for unusual activities are crucial to prevent BEC attacks.

• Hijacking real conversations: In account takeover cases, attackers insert fraudulent instructions into ongoing email threads, increasing credibility.

How to prevent business email compromise

BEC prevention requires a combination of cybersecurity measures, employee training, and business process safeguards. Organizations can mitigate risks by implementing the following best practices:

1. Security awareness training

Regular training helps employees recognize BEC attack tactics, such as urgent requests from executives, minor email domain discrepancies, and unusual payment instructions. Conducting simulated phishing attacks can help employees practice identifying threats in a safe environment. Additionally, comprehensive cybersecurity awareness training equips teams with the knowledge needed to spot and prevent BEC scams before they cause damage.

2. Implementing email authentication

Enforcing SPF, DKIM, and DMARC authentication protocols helps prevent email spoofing and ensures that only authorized senders can use company domains.

3. Enabling multi-factor authentication (MFA)

Requiring MFA for email and financial system access reduces the risk of credential theft leading to account compromise.

4. Strengthening payment verification procedures

Implement strict financial controls, such as multi-step approval for wire transfers and verbal confirmation of payment requests using known contact methods.

5. Monitoring and auditing email accounts

Regularly reviewing email forwarding rules, login activity, and unauthorized account access attempts can help detect compromise early.

6. Deploying AI-based threat detection

Advanced email security solutions that analyze sender behavior and detect anomalies can help flag potential BEC attempts before damage occurs.

Conclusion on BEC scams

Business email compromise remains one of the most financially devastating cyber threats, leveraging human trust and deception rather than technical exploits. Unlike malware-based attacks, BEC operates through carefully crafted emails that bypass traditional security tools and exploit standard business processes.

To combat BEC, organizations must invest in employee training, implement email authentication measures, and enforce strict financial verification policies. By fostering a culture of cybersecurity awareness and leveraging advanced detection tools, businesses can significantly reduce the risk of falling victim to BEC fraud.

As cybercriminals evolve their tactics, proactive defense strategies and vigilance are essential to securing corporate communications and financial transactions.