A significant cyber threat facing businesses today is Business Email Compromise (BEC). BEC attacks jumped 81% in 2022, and as many as 98% of employees fail to report the threat.
What is business email compromise (BEC)?
BEC is a type of scam in which criminals use email fraud to target victims. These victims include both businesses and individuals. They especially target those who perform wire transfer payments.
BEC attacks are usually well-crafted and sophisticated, making it difficult to identify them. The attacker first researches the target organization and its employees online. They gain knowledge about the company’s operations, suppliers, customers, and business partners.
The scammer pretends to be a high-level executive or business partner. Scammers send emails to employees, customers, or vendors.
These emails request them to make payments or transfer funds in some form.
The email will often contain a sense of urgency, compelling the recipient to act quickly. The attacker may also use social engineering tactics. Such as posing as a trusted contact or creating a fake website that mimics the company’s site. These tactics make the email seem more legitimate.
According to the FBI, BEC scams cost businesses about $2.4 billion in 2021.
These scams can cause severe financial damage to businesses and individuals. They can also harm their reputations.
How to fight business email compromise
BEC scams can be challenging to prevent. But there are measures businesses and individuals can take to cut the risk of falling victim to them.
- Educate employees
- Enable email authentication
- Deploy a payment verification processes
- Check financial transactions
- Establish a response plan
- Use anti-phishing software
Get ready for the unexpected
If your business suffers an email compromise or a ransomware attack tomorrow, do you have a contingency plan in case of any disasters? The unexpected can happen anytime, and small businesses can get hit particularly hard.
Here are ten helpful tips to get ready for anything:
- Create a contingency plan
- Maintain adequate insurance coverage
- Diversify your revenue streams
- Build strong relationships with suppliers
- Keep cash reserves
- Build strong outsourcing relationships
- Check your financials regularly
- Invest in technology
- Train employees for emergencies
- Stay up to date on regulatory requirements