Understanding Business Email Compromise (BEC)

Businesses, regardless of their scale, face a diverse array of online threats, with one of the most covert being Business Email Compromise (BEC). At its core, BEC constitutes a type of cyber fraud wherein cybercriminals infiltrate legitimate business email accounts to execute unauthorized transactions or pilfer sensitive data. This malicious tactic exploits the trust existing among employees, and its consequences can be financially catastrophic. It is imperative for business owners to be cognizant of this menace and take essential precautions.

Understanding Business Email Compromise
BEC transcends the realm of sophisticated phishing attempts; it represents a precisely targeted assault. Malefactors begin by selecting a specific company, delving into its organizational framework, roles, and responsibilities. The attacker may compromise an executive's email account or impersonate them, dispatching requests for wire transfers or confidential information to subordinates. In certain instances, BEC schemes might even masquerade as vendors or partners, soliciting alterations to payment details. Given that these emails seem to emanate from trusted sources, identifying them can be a formidable challenge.

The Significance of the Threat
It is impossible to overemphasize the scale and repercussions of BEC. According to the FBI's 2022 Internet Crime Report, there were 21,832 BEC complaints resulting in adjusted losses exceeding $2.7 billion. The actual cost may well be higher, as many businesses refrain from reporting these incidents due to concerns about their reputation. The prevalence of remote work has exacerbated businesses' vulnerability since employees increasingly rely on email communication while working from home. Verizon's research reveals that BEC attacks have nearly doubled, now constituting over 50% of social engineering attack patterns. Furthermore, IBM's findings indicate that BEC ranked among the top three objectives in 2022. Most recently, threat actors have harnessed generative AI, like WormGPT, to craft highly convincing counterfeit emails as part of their BEC attack chains.

Stages of Business Email Compromise

Mitigating the Threat
Countering BEC demands a multifaceted strategy. First and foremost, businesses should prioritize educating their employees. Staff members, particularly those in finance or HR roles, should undergo training to identify BEC indicators and validate any unexpected or unconventional requests, irrespective of their apparent origin. Technical safeguards such as multifactor authentication (MFA) can bolster the security of email accounts against unauthorized access. Moreover, implementing policies mandating dual approval for significant transactions or changes in payment details can introduce an additional layer of defense.

Nevertheless, relying solely on measures like MFA proves inadequate as modern threat actors continuously evolve, often sidestepping these safeguards through sophisticated tactics. This is where Managed Detection and Response (MDR) services come into play. MDR provides continuous monitoring and proactive threat hunting, identifying anomalies that conventional tools might overlook. Furthermore, a 24/7 Security Operations Center (SOC) guarantees that potential threats are promptly detected and neutralized. Our cybersecurity platform has seen an average of 60 BEC attacks per week! Together, a combination of cybersecurity training, MFA, MDR, and a dedicated SOC offers robust protection against the intricate threat landscape encompassing BEC and other cloud-based threats.

Red Flags of Business Email Compromise 🚩

1. Spoofed address – Look carefully at the actual domain name, not just the sender’s display name. This spoofed domain has an extra character in the company name.

2. Malicious link – This link actually leads to a credential harvesting site. Hover your mouse pointer over the link before clicking it to confirm that it's going to the expected address.

3. Real data used to fool you – Because hackers may be monitoring your email, they may jump into a legitimate thread. In this case, the first message in the sequence came from a real vendor talking about a real invoice. The hackers have inserted themselves and took over the discussion, cutting the real vendor out of the thread.

4. Timing – This is a fake email from the scammer, who sent the request late in the week, hoping to catch an employee rushing to complete tasks before leaving.

5. Suspicious attachments – If you’re not expecting an attachment, don’t open it. Call the sender to confirm it’s a legitimate file.

6. Sudden change in normal procedure and/or urgency – Be extremely wary of changes in deadlines, bank accounts, etc. Call your contact to confirm what’s happening.

7. Unusual name usage – Hackers posing as legitimate contacts often fumble the details of names, so pay attention to any discrepancies, such as someone who normally goes by “Michael” signing a message as “Mike.”

Summary
Business Email Compromise stands as a sophisticated and highly effective form of cybercrime that capitalizes on trust within organizations, leading to financial and informational losses. Its increasing prevalence underscores the imperative for businesses, regardless of their size or industry, to prioritize cybersecurity. By emphasizing employee training, implementing technical safeguards, and investing in comprehensive protection around the clock, businesses can significantly mitigate the risks associated with BEC, ensuring a more secure digital future.

If you want to learn more about protecting your business from BEC, reach out and lets have a conversation about your security posture.