Business Email Compromise

Business Email Compromise (BEC) is one of the most financially devastating forms of cybercrime. Unlike traditional phishing that casts a wide net, BEC attacks are highly targeted, meticulously researched, and designed to exploit trusted business relationships.

What is Business Email Compromise?

BEC is a sophisticated scam where attackers impersonate executives, vendors, or trusted partners to manipulate employees into transferring funds or revealing sensitive information. These attacks don't rely on malware - they exploit human trust and normal business processes.

The Staggering Financial Impact:

• BEC has caused over $50 billion in losses globally since 2013
• The average loss per incident exceeds $125,000
• Some organizations have lost millions in a single attack
• Recovery rate is less than 30% once funds are transferred
• Small and medium businesses are increasingly targeted

How BEC Attacks Unfold:

Phase 1: Research (Weeks to Months) Attackers gather intelligence about your organization: - Study company websites, press releases, and social media - Identify key personnel (executives, finance staff, HR) - Learn about vendors, partners, and business relationships - Monitor communication patterns and timing - Research upcoming deals, mergers, or large transactions

Phase 2: Setup Attackers establish their attack infrastructure: - Register lookalike domains (company-inc.com vs company.com) - Compromise legitimate email accounts through phishing - Set up email forwarding rules to monitor communications - Create email accounts that mimic executives or vendors

Phase 3: Execution The attack is launched at an opportune moment: - When the impersonated executive is traveling or unavailable - During busy periods (quarter-end, tax season) - When large transactions are expected - When key verification personnel are out of office

Phase 4: Monetization Funds are quickly moved to evade recovery: - Wire transfers to overseas accounts - Cryptocurrency conversion - Multiple rapid transfers to complicate tracing - Gift card codes sent before detection

Why BEC Works:

1. . Trust exploitation: Requests appear to come from trusted sources
2. . Business context: Attackers reference real projects and relationships
3. . Authority pressure: Employees hesitate to question executives
4. . Urgency: Time pressure prevents careful verification
5. . No malware: Nothing triggers security software