Cybercriminals are nothing if not imaginative, constantly expanding their arsenal of digital threats. While most companies brace themselves for malware and ransomware attacks, there’s another deceptive tactic quietly claiming millions: business email compromise (BEC).

Unlike ransomware that loudly announces itself to threaten and extort, BEC uses subtle and cunning social engineering tactics to infiltrate business accounts and steal money. 

What are business email compromise attacks?

BEC attacks are a form of cybercrime where hackers manipulate or impersonate business email accounts to trick employees, vendors, or executives into sending money or sensitive information. Cybercriminals exploit human behavior and psychology by leveraging trust, authority, and urgency to deceive their victims.

Common techniques used in BEC attacks

Cybercriminals don’t need to break in when they can talk their way through the front door. Here are a few ways they can perform a BEC attack:

  • Domain spoofing: BEC attackers falsify an email address so it appears to come from a trusted source, such as the CEO or a major vendor. The email domain might look nearly identical to the real one, with small differences. For instance, a fake domain may swap an “l” for a “1” or add a subtle hyphen to fool the victim into thinking they’re corresponding with a legitimate email account. 
  • Account compromise: By stealing login credentials (often via a brute force attack or phishing attack), criminals gain full access to an employee’s email account. Once inside, they monitor email threads to understand communication patterns before launching the scam.
  • Forwarding rules abuse: A lesser-known technique involves silently collecting incoming and outgoing messages by setting up automatic email forwarding rules. Doing so gives attackers the context they need to craft believable fraudulent emails.

Specific types of business email compromise attacks

There are various types of BEC exploits, each with its own goals and methods. Some of the most common ones include:

  • CEO fraud: A scammer poses as a high-level executive and asks a junior employee — often someone in the human resources or finance department — to send an urgent wire transfer. The urgency is key, as it puts pressure on the employee to act quickly without verifying the request. Many of the phrases and language used in these emails also mimic those of actual CEOs, making it difficult for employees to spot or question the scam.
  • False invoice scheme: Attackers impersonate a vendor or third-party supplier and send an updated invoice or payment instructions. If a business doesn’t have a reliable way to confirm changes, funds could be transferred straight into fraudulent bank accounts.
  • Attorney impersonation: Scammers often impersonate legal representatives and claim to be handling sensitive matters such as settlements, mergers, or legal disputes. They use this as a tactic to pressure executives or finance staff into acting quickly and discreetly. Because people tend to avoid questioning legal authority, these emails often go unchallenged. 
  • Payroll redirection: In this tactic, HR receives an email (seemingly from an employee) asking to update the details of their direct deposit account. If approved, the attacker receives the employee’s paycheck. Those who are not monitoring their finances may not realize the theft until it is too late.

How to prevent business email compromise

When BEC scams are successful, there’s often very little recourse for the victim other than filing fraudulent claims and freezing accounts. It’s therefore more important to proactively prevent BEC threats. Here are some steps you can take to prevent falling victim to a BEC scam:

Reinforce a culture of healthy skepticism

No matter how advanced your security tools are, a rushed decision can bypass all of them. Create a culture where it’s not only acceptable but expected to double-check unusual requests, especially when they involve sharing sensitive information or transferring money. 

Employees must get in the habit of verifying every email, link, and urgent request they receive. Better yet, they should call or meet the sender face to face to confirm the authenticity of a request. It might seem like a nuisance, but it’s much less costly than falling for a BEC scam. You can use regular security awareness training on BEC scams to ingrain these habits into employees, helping them develop a more critical eye when it comes to malicious links and suspicious requests.

Be cautious with email change protocols

Treat any request to update bank account details, wire instructions, or contact information with suspicion, no matter how convincing the email looks. Standardize a manual process for verifying such changes; for instance, calling a known contact using previously stored information. Never rely on phone numbers or links in the incoming message.

Use dual-approval for financial transactions

Single-person approval workflows are a major weak spot that scammers can easily exploit. With only one person to deceive, the chances of fraudulent approvals significantly increase. 

To minimize risk, set up policies that require two sets of eyes (i.e., one junior employee and one senior employee) for anything involving account changes, payment reroutes, or invoice approvals. 

Also, create thresholds for financial transactions so that any amounts above a certain limit are automatically reported as potential fraud. Adding another step to payment approvals forces a moment of scrutiny, making it more difficult for a fraudulent request to slide through unnoticed. 

Segment access to sensitive accounts

Avoid giving blanket access privileges to financial tools, vendor portals, or executive inboxes. Limit permissions based on roles, and review them regularly. The fewer people who can initiate payments or change user access, the smaller the risk of privilege abuse or compromised accounts.

Turn spoofed emails into teachable moments

Instead of filtering suspected phishing attacks and forgetting about them, you should use them to educate your team. Collect and anonymize real examples and share them internally during team meetings or in newsletters. Walking through how a fraudulent email nearly succeeded is more memorable than any PowerPoint presentation. 

Check in with vendors

BEC thrives on digital impersonation. If your vendor relationships live entirely in email threads, they’re easier to spoof. Regular check-ins by phone or video, along with verifying major changes through channels other than email, can help expose impersonation attempts.

Review what your website reveals

Scammers often mine company websites for names, titles, and business details to craft convincing phishing emails. Take a critical look at your site: Is it really necessary to list your full leadership team, contact details, and other sensitive information? In many cases, this only provides scammers with more ammunition to use against you. That’s why you should share only what’s essential and avoid publishing details that could be exploited.

Actively test your own defenses

Run simulated BEC attacks periodically to see who clicks, who replies, and who flags them. Use those insights to improve your training and tighten your processes so you can fend off future attacks. 

Business email compromise ranks among the most financially damaging cybercrimes affecting organizations today. It’s low-tech, high-impact, and alarmingly effective. Fortunately, with the right preparation, it can be spotted and stopped. Our team at Dynamic Solutions Group can provide all the tools and training you need to protect your business. Contact us today to learn more.