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Business Email Compromise (BEC) is one of the most financially damaging online crimes today, costing companies over $50 billion in 2023 alone! In fact, BEC attacks have become more costly than ransomware, data breaches, and many other cyber threats combined. One chemical manufacturing firm lost $60 million in a single BEC scam when an employee transferred funds to fraudulent accounts.
BEC scams are sophisticated operations where criminals spend weeks or months studying their targets before launching an attack. These attackers use email spoofing and social engineering to impersonate executives, vendors, or trusted partners.
But, isnât that just phishing? Well, yes and no. While BEC and phishing are related cybercrimes, they differ in their level of sophistication, complexity and how specifically they target their victims.
While many emails are flagged as “untrustworthy or malicious,” yet many businesses still lack proper protection. In this post, weâll discuss what Business Email Compromise really means, how it works, and, most importantly, how you can protect your business from falling victim to these costly attacks.
Business Email Compromise (BEC) is a highly sophisticated cybersecurity threat that targets organisations through deceptive email communications. Unlike many common cyberattacks like malware or viruses, BEC relies heavily on social engineering tactics â attackers impersonate trusted individuals, like executives, vendors, or business partners, to manipulate employees into specific actions, whether that is transferring money, sharing sensitive information, or revealing confidential business data.
BEC is considered âone of the fastest growing, most financially damaging internet-enabled crimes.â Itâs reported that BEC crimes have seen a 566% increase since 2016. The shift to remote work has only fueled this rise, providing attackers with more opportunities to exploit digital communication channels that businesses rely on and isolating employees who may not have the usual in-person support to spot suspicious requests.
While Business Email Compromise falls under the broader category of phishing attacks, itâs unique in several key ways:
Imagine you receive an email that looks like itâs from your bank, saying thereâs a problem with your account. The email asks you to click a link and enter your login details to fix the issue. The message is sent to thousands of people, hoping some will fall for the scam. This is a classic phishing attack, broad, generic, and focused on stealing your personal information through fake websites or malicious links.
Now, imagine your companyâs finance manager suddenly gets an email that looks like itâs from your CEO, asking to urgently transfer a large sum of money to a new vendor. The email address looks almost identical to the CEOâs real email, and the message even mentions a recent project youâre working on.
This email isnât sent to many people, itâs carefully crafted just for your finance team. This is a Business Email Compromise attack. Targeted & highly personalised.
BEC attacks present some unique challenges that make them particularly difficult to detect:
Plus, BEC tactics continue to evolve. Attackers now use AI-generated content, multi-channel approaches combining email with phone or video, and sophisticated âthread hijackingâ to insert themselves into legitimate email conversations and trick others into trusting fake requests.
Business Email Compromise comes in several forms, each targeting different weaknesses in how organisations operate. Knowing these common types can help you spot warning signs before scammers cause serious damage:
Toyota Boshoku Corporation, a major Toyota auto parts supplier, lost AUD$ 56.57 million to a sophisticated business email compromise attack at its European subsidiary in August 2019. The scammers tricked an employee who had fthe inancial authority to change bank account details for a funds transfer. This was Toyota’s third cyberattack that year. The company spotted the fraud quickly but couldn’t stop the money transfer.
The scammers used typical BEC tactics to target the finance department. They pretended to be a business partner who needed an urgent transfer. Their message claimed that parts production would suffer if the payment wasn’t made immediately.
Tech giants Facebook and Google fell victim to email spoofing from 2013 to 2015. Lithuanian national Evaldas Rimasauskas and his team ran a scam that cost both companies AUD 185.01 million combined.
The scam worked with surprising complexity. The criminals created a fake company called “Quanta Computer” that shared its name with a real hardware supplier, both tech companies worked with, and sent professional-looking fake invoices.
The group created fake lawyers’ letters and contracts to make bank transfers look legitimate. They even put forged corporate seals on documents to avoid detection.
Rimasauskas admitted to wire fraud in 2019. Both tech companies had paid the fake invoices straight to the scammers’ bank accounts. Facebook got most of its money back, while Google recovered an unknown amount.
Business Email Compromise (BEC) attacks are smart, targeted, and costly, but they can be prevented. With the right mix of technology, training, and procedures, your organisation can stay ahead of even the most convincing scams. Hereâs how to build a strong line of defence:
MFA is one of the simplest but most effective tools to stop unauthorised access. It requires users to verify their identity using two or more methods, such as a password plus a one-time code from their phone or a physical security key.
Why it works: Even if attackers steal your password, they canât get in without the second factor.
Use hardware-backed authentication like FIDO2 keys for your most sensitive accountsâespecially email, cloud platforms, and finance tools. Avoid SMS-based MFA when possible, as text messages can also be intercepted.
Did you know? According to the 2023 Oh Behave survey, 94% of people changed how they manage their digital security after proper training, and over a third adopted MFA as part of their daily routine.
These protocols help ensure emails coming from your domain are legitimateâand block spoofed ones before they reach your team.
Make sure your DMARC policy is set to ârejectâ, not just âmonitor,â to stop suspicious emails before they reach your team.
Cybercriminals often create lookalike domains to impersonate your business. These might include:
If you are especially susceptible to cyber threats, beat attackers to the punch by registering common variations of your domain. Itâs a low-cost way to reduce the risk of impersonation and phishing.
Your employees are your first and strongest line of defence. Regular training helps them spot red flags before damage is done.
Focus on training that teaches staff to:
Focus especially on finance and procurement teams, who are often the primary targets.
If someone asks for a money transfer, change to bank details, or sensitive data, donât rely solely on email to confirm it.
What to do:
Even with the best defences, no business is immune. Having a clear plan means you can respond quickly, limit damage, and recover faster.
Your BEC incident response plan should include:
Tip: Test this plan regularly so your team knows exactly what to do in an emergency.
Keeping up with cybersecurity threats can be overwhelming, especially for small to mid-sized businesses. At CRT Network Solutions, we help businesses stay protected with continuous threat monitoring, rapid response, and proactive risk assessments. Our managed security services give you peace of mind, so you can focus on running your business.
Business Email Compromise is not a fringe threat. Itâs a targeted, high-impact form of cybercrime thatâs costing businesses millions. And itâs not just large corporations at risk. Small to medium-sized businesses are increasingly in the crosshairs because attackers know they often lack the resources to respond effectively.
The good news? You donât have to be vulnerable.
By combining strong technical safeguards, like multi-factor authentication, domain protections, and email authentication protocols, with practical, everyday policies and employee training, you can significantly reduce your risk. The goal is to make impersonation difficult, suspicious requests easier to spot, and your team confident in what to do if something seems off.
Cybersecurity isnât just about stopping attacks, itâs about building resilience. And that starts with taking action now.
Let CRT Network Solutions help you secure your business from BEC threats with proven tools, training, and around-the-clock support.
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