Business e-mail compromise (BEC) is quickly becoming one of the most dangerous cyber threats businesses face.
BEC scams aren’t your average phishing attempts. They’re highly targeted cyberattacks where criminals exploit e-mail accounts to trick employees, partners or clients into sharing sensitive information or transferring funds. BEC is more convincing and effective than generic phishing as it impersonates trusted members of a business.
The financial impact of BEC scams has reached a staggering $6.7 billion in 2023 alone. Even more concerning, a study by Perception Point has revealed a 42% increase in BEC incidents during the first half of 2024 compared to the same period in the previous year.
Now, cybercriminals are using AI to refine their techniques, making BEC more sophisticated and dangerous.
Why Are BEC Attacks So Dangerous?
BEC scams are alarmingly successful because they rely on manipulating human trust rather than malware or attachments, which can often be detected by filters. Here’s what makes them so destructive, they can result in:
- Financial Losses: A single deceptive email can trigger unauthorized transfers or data breaches. Typical losses exceed $100,000 per incident, with stolen funds rarely recovered.
- Business Paralysis: Attacks often freeze operations, causing costly downtime and triggering extensive internal reviews
- Reputational Damage: Explaining potential data breaches to clients can severely damage your company’s image.
- Eroded Employee Confidence: Staff morale and trust may plummet when they realize their workplace was compromised.
Common BEC Scams To Watch Out For
BEC scams take many forms. Here are a few of the most common:
- Fake Invoices: Cybercriminals recreate invoices from legitimate vendors and send them for payment
- CEO Fraud: Hackers pose as executives put pressure on employees to transfer funds quickly
- Compromised E-mail Accounts: Legitimate accounts are hacked and used to send malicious requests.
Fortify Your Business Against BEC Scams
With the right strategies, you can prevent Business e-mail compromise by:
- Training your employees on how to identify phishing e-mails. Always ask for verbal confirmation for any financial request.
- Enabling MFA on all accounts, e-mail, and financial platforms for added security in case a password gets compromised.
- Regularly back up data and ensure they work properly.
- Using advanced e-mail filters to block malicious links and attachments.
- Restricting employee access to only view information required for their specific job.
- Verifying large payments or sensitive requests via a separate communication channel, like a phone call
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Cyber threats are constantly evolving, but your business can stay ahead. Strengthen your security, educate your team, and implement proactive measures to reduce your risk of falling victim to BEC scams.
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