What is Business Email Compromise?

Written by Wells Insurance | Oct 13, 2023 9:00:00 AM

You've probably heard of phishing, but Business email compromise (BEC) is a type where hackers try to impersonate someone within your company or at a high level from a seemingly legitimate source to trick employees into giving them money, revealing sensitive information or getting involved in other activities that could compromise security, passwords, or other sensitive information. What does that look like? Well, a cybercriminal using a BEC attack will send an email that very closely resembles something legitimate. They will request payment for some business reason. They can take on the persona of a senior-level employee, VP, CEO, a supplier, vendor, business partner or other organization.

Where a traditional phishing attack targets an entire list of people, a BEC attack is customized and created to appeal to specific individuals — making them very difficult to suss out. BEC is a threat that all businesses, regardless of size or industry, should take seriously.

Common BEC Attacks

False invoice schemes — Cybercriminals pretend to be business suppliers and request fund transfers to complete an invoice.
CEO fraud — Criminals pose as high-level executives to request wire transfers.

Account compromise — Cybercriminals hack into an executive or employee account to request invoice payments directly from vendors.
Attorney impersonation — Hackers impersonate a corporate lawyer or law firm to request an immediate transfer of funds.
Data theft — Criminals pose as HR professionals or employees in other functional roles to obtain personally identifiable information or tax statements from other employees or executives.

Signs of a BEC Attack
Differentiating between legitimate business requests and BEC attacks can be difficult. Here are some signs that an email is a BEC attack.

Generic terms or lack of personalization
Variations to email addresses or company websites

Unfamiliar names or images
A sense of urgency or threatening language
Requests to send personal or financial information

Protecting Against BEC
BEC attacks can result in severe financial and reputational harm. Consider implementing the following cybersecurity practices to help reduce the risk for your organization.

Educate employees. Teach your employees to be wary of emails making requests, never click suspicious links and report any suspected BEC attack to IT.
Implement effective payment protocols. Ensure employees in charge of financial operations analyze invoices for validity and discuss them in person whenever possible.

Restrict access to sensitive data. Only provide access to sensitive data to trusted and experienced employees who require such information to conduct their work tasks.

Utilize security features. Ensure all organizational devices possess adequate security, such as antivirus and malware prevention programs, email spam filters, data encryption capabilities and a firewall.
Have a plan. Ensure your organization has an effective cyber incident response plan that specifically addresses response protocols and mitigation measures for BEC attacks.

For more information on cyberinsurance and protecting your digital footprint and assets, please contact us 910.762.8551 or email us at insurance@wellsins.com.

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