Cybercriminals are known for their adaptability and cunning, continually evolving their tactics to exploit new vulnerabilities. While many businesses focus on defending against obvious threats like ransomware and malware, a quieter, more insidious scheme is draining millions from companies each year: business email compromise (BEC).
BEC attacks rely on social engineering rather than brute-force techniques, making them harder to detect. Instead of locking data and demanding ransom, attackers aim to deceive employees through carefully crafted emails, impersonating trusted colleagues or vendors to manipulate victims into sending money or sensitive information.
Understanding Business Email Compromise
In a business email compromise, attackers impersonate legitimate business contacts—such as executives, legal representatives, or vendors—to trick recipients into taking harmful actions. These scams are successful because they exploit trust, urgency, and authority, preying on human psychology more than technical weaknesses.
Unlike common phishing tactics that cast a wide net, BEC attacks are highly targeted. Cybercriminals often research their victims thoroughly, learning who handles finances or HR and what protocols are in place before executing their plan.
Common BEC Techniques
Here are several methods cybercriminals use to launch a BEC attack:
– Domain spoofing: Attackers create email addresses that closely resemble those of real executives or vendors by using similar characters or adding minor details, like a hyphen or a different domain extension, to make the message seem legitimate.
– Account compromise: Through phishing or brute-force attacks, hackers may gain access to a real employee’s email account. Once inside, they observe messages and patterns before intervening with fraudulent requests.
– Forwarding rules abuse: An under-the-radar method involves setting up automatic email forwarding to send all incoming or outgoing messages to an attacker, giving them insight to craft convincing scams.
The Many Faces of BEC
BEC attacks take multiple forms, depending on the target and the attackers’ goals:
– CEO fraud: A perpetrator poses as a top executive and requests a wire transfer from a subordinate, typically using urgent language to bypass scrutiny.
– Vendor impersonation: Attackers send fake invoices or request payment method changes while posing as trusted vendors. Without strict verification, payments can be misdirected.
– Attorney impersonation: Threat actors assume the role of legal counsel, citing confidential or time-sensitive matters to intimidate employees into compliance.
– Payroll redirection: Fraudsters contact HR pretending to be an employee and request to update their direct deposit details. If successful, this reroutes salary payments to the attacker’s account.
How to Defend Against BEC Attacks
Once funds are transferred through a BEC scam, recovery is often difficult or impossible. That’s why prevention is crucial. Here are key steps Cytranet recommends to reduce your risk:
Foster a Culture of Skepticism
Employees are your first line of defense. Train them to verify all unusual or urgent requests, especially those related to finance or sensitive data. Encourage team members to confirm suspicious emails by speaking directly with the requester via a known, separate communication channel.
Regular phishing simulation tests and ongoing cybersecurity awareness training help employees identify red flags and build confidence in reporting suspicious activity.
Validate All Change Requests
Establish and enforce procedures to manually verify any updates to payment instructions, banking details, or vendor information. Cross-check requests using contact information already on file—and never respond directly to suspicious messages without authentication. Offering employees clear guidelines for these situations will help them respond correctly under pressure.
Implement Two-Person Confirmation Processes
Implement dual-approval workflows for significant financial transactions and system changes. The more scrutiny a transaction faces, the less likely it is to succeed if it’s fraudulent.
Additionally, set thresholds (e.g., for wire transfers) that trigger mandatory reviews. This simple step can help flag anomalies and delay fraudulent transactions before they’re processed.
Control and Audit Access
Avoid excessive access privileges. Give employees access only to the tools and data they need to perform their jobs, and regularly audit permissions. Limit who can initiate or approve payments, and avoid centralizing too much authority within one individual’s account.
Educate Through Real-World Examples
Instead of hiding phishing attempts from your staff, use them as training opportunities. Share anonymized examples in internal communications or meetings to highlight how close calls occur and what employees can do differently.
Reevaluate External Communication Practices
If your vendor relationships take place solely through email, they’re easier to impersonate. Supplement digital conversations with occasional phone or video check-ins and verify critical changes—like payment details—offline.
Also, assess what type of employee and company information is publicly available on your website. Listing too many internal contacts, job roles, and emails can aid scammers in targeting your company. Only publish necessary information to minimize what cybercriminals can exploit.
Test and Strengthen Your Defenses
Cytranet encourages businesses of all sizes to regularly test their readiness through simulated BEC attacks. These tests can help identify weaknesses, inform better training strategies, and reduce risk over time.
BEC is one of the costliest cybercrimes affecting organizations today. It may not exploit software vulnerabilities, but it capitalizes on human behavior and trust. Fortunately, with
