Business Email Compromise (BEC): Prevention & Security Tips

Business Email Compromise (BEC), also known as CEO fraud, is a sophisticated cyberattack where fraudsters impersonate top executives to trick employees, vendors, or customers into transferring funds or sharing sensitive information.

By hacking official email accounts, attackers monitor internal communications and identify employees authorized to make payments. Typically, criminals impersonate CEOs, CFOs, or other senior executives, combining advanced social engineering techniques to manipulate victims.

Recent reports highlight that BEC attacks continue to rise. In 2024, the Internet Crime Complaint Center (IC3) received 21,442 BEC complaints, resulting in adjusted losses of approximately US $2.77 billion (IC3, 2024). Over the last three years (2022–2024), total BEC-related losses reported to IC3 reached nearly US $8.5 billion.

How a Business Email Compromise Scam Works

How Business Email Compromise works

BEC attacks are highly targeted, unlike mass phishing campaigns. Criminals meticulously research high-level executives using company websites, social media profiles, and online sources to craft convincing fraudulent emails.

Using targeted techniques like spear phishing, attackers gain access to corporate systems, observe financial transactions, and send fake emails requesting urgent fund transfers. These emails often bypass spam filters, especially when sent while senior executives are away, making the scam appear legitimate.

Types of Business Email Compromise Scams

Types of Business Email Compromise scams

  • CEO Fraud: Cybercriminals impersonate the CEO or senior executive to request urgent transfers of funds.
  • Bogus Invoice Scheme: Targets companies with overseas suppliers by requesting a change in payment destination.
  • Account Compromise: Hackers intercept invoices and redirect payments to fake accounts.
  • Lawyer/Attorney Impersonation: Fraudsters request confidential fund transfers posing as legal counsel.
  • Data Theft: Attackers request sensitive corporate information from compromised executives’ emails.

Warning Signs of a Business Email Compromise Attack

Warning signs of BEC attacks

  • Unexpected large funds transfer requests to unfamiliar recipients.
  • Transfers initiated at the end of the day or workweek.
  • Emails with urgent, confidential, or secretive language.
  • Slight changes in email addresses mimicking legitimate contacts.
  • Recipient accounts with no history of large transfers.
  • Recipient accounts are personal rather than corporate accounts.

How to Prevent Business Email Compromise Attacks

How to prevent Business Email Compromise attacks

  • Implement regular security awareness training for staff.
  • Provide C-Level Executive training.
  • Verify all urgent and confidential requests for fund transfers.
  • Limit employees authorized to transfer funds.
  • Use multifactor authentication for all email accounts.
  • Require two-step verification for payments.
  • Create formal procedures for approving financial transactions.
  • Send emails through encrypted servers whenever possible.
  • Avoid posting sensitive information publicly.
  • Use external email banners for messages from outside the organization.

Employees are often the first line of defense against cyberattacks. MetaLearning Fusion provides next-generation eLearning for Cyber Security and Privacy, allowing organizations to create customized courses for staff. Contact us today to learn more.

Learn More & Protect Your Organisation

MetaCompliance offers comprehensive solutions to protect against BEC and other cyber threats:

For personalised advice and to discuss how MetaCompliance can secure your organisation, contact us today.

FAQs on Business Email Compromise (BEC)

What is BEC (Business Email Compromise)?

BEC is a type of cybercrime where attackers impersonate a company executive, vendor, or trusted partner via email to trick employees into transferring money, sharing sensitive information, or performing unauthorized actions.