What is Business Email Compromise (BEC)? How to Prevent?

The business email compromise meaning refers to a type of scam where an attacker uses email to trick someone in a company. They often aim to make that person send money or sensitive information to the wrong place. BEC is a highly effective attack because it targets trust within a business structure.

To understand this better, Business Email Compromise (BEC) can be understood as a sophisticated scam that often involves impersonating a high-level executive or a key vendor. This attack avoids the typical technical defenses, focusing instead on human error and manipulation. This is why many organizations now ask, what is business email compromise in cyber security?

What Is Business Email Compromise (BEC)?

Simply put, this type of fraud focuses on tricking an employee through email communication. The attacker first researches the company. They then send an email that looks completely authentic, often appearing to come from the CEO, a CFO, or a key supplier. This email usually demands an urgent wire transfer or asks for confidential data.

Business Email Compromise is a major problem because of the huge financial losses it creates. Unlike mass phishing attacks that try to catch many people at once, a BEC attack is highly targeted. It plays a vital role in why companies lose millions of dollars each year.

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Business Email Compromise

Business Email Compromise is nothing but an exploit that leverages social engineering. The attacker uses careful language to create a sense of urgency or authority. This often makes the receiver act quickly without checking the details.

The question arises: What is a different name used for Business Email Compromise? Business Email Compromise is also known as Email Account Compromise (EAC), especially when the attacker takes over a legitimate email account. Many people also refer to it as a Man-in-the-Email attack. It is important to note that BEC is a specific kind of threat, different from typical, mass-market phishing.

BEC vs. Phishing: Key Differences

While both BEC and phishing use email to deceive, their methods and targets differ significantly. BEC vs. Phishing is a common point of confusion. Let us now discuss the distinct characteristics of each.

Also Read: What is Phishing Simulation? Benefits & Best Practices

How Does a Business Email Compromise Attack Work?

To understand how to prevent Business Email Compromise, we must first know the steps an attacker follows. This systematic process aims to trick employees into making a financial or data mistake.

1. Target Selection and Reconnaissance

The process begins with target selection. The attacker focuses on companies with international suppliers or those that regularly handle large wire transfers. They perform extensive research. This involves studying the company's website, organizational charts, and even social media profiles. The aim is to identify key personnel—who handles money, who reports to whom, and who is traveling. This helps in making the email look completely authentic.

2. Email Account Access or Impersonation

Next, the attacker gains access to or mimics an official email.

• Impersonation: The attacker registers a domain name that is very similar to the company's real domain, such as company.net instead of company.com. They send the email using this lookalike address.
• Account Compromise: More sophisticated attacks involve actually compromising a legitimate email account. This can be understood as Email Account Compromise (EAC). The attacker uses malware or a phishing link to steal an employee's credentials, then logs in and uses the real account for the scam.

3. Creating the Phishing Email

The attacker drafts a carefully worded email. The email uses psychological triggers. It demands urgency ("I need this wire transfer immediately before I get on my flight") and authority ("The CEO requests this"). It also ensures that the receiver does not confirm the request through the normal process. This action aims at bypassing company security protocols.

4. The Request and Fund Transfer

The email will request a transfer of funds to a new bank account. It might state that this is due to a sudden change in vendor banking details or a confidential acquisition. The employee, acting quickly due to the pressure, processes the payment. The funds are then transferred to a bank account controlled by the attacker.

Also Read: What is an Email Security Gateway? Protecting Your Inbox

Types of Business Email Compromise

Business Email Compromise comprises of several common variations. Knowing the different types of Business Email Compromise helps you and your team spot the subtle signs of each scam.

1. The Fake Invoice Scheme (Supplier Compromise)

This is one of the most common types of business email compromise.

• Definition Pattern: The fake invoice scheme can be understood as an attacker impersonating a trusted vendor or supplier.
• The process: The attacker sends an email to the Accounts Payable department. This email includes a new payment address or a fake invoice. The email claims the vendor's bank has recently changed. The company then pays the legitimate-looking invoice, but the money goes to the fraudster.

2. The CEO Fraud (Executive Impersonation)

• Definition Pattern: CEO Fraud refers to the attacker impersonating a high-level executive, typically the CEO, CFO, or President.
• The process: The email usually goes to a lower-level employee in the Finance team. It requests an urgent, confidential wire transfer for an acquisition or a sensitive business matter. The email often comes from a compromised executive account or a spoofed email address. The language plays a vital role in making the employee feel special and obligated to act without question.

3. Attorney Impersonation

• Definition Pattern: Attorney Impersonation implies that the attacker pretends to be a lawyer or someone from a law firm handling a confidential legal matter.
• The process: The email warns of a "highly confidential" and "time-sensitive" issue. It demands an immediate transfer of funds to cover a court fee or settlement. It ensures that the employee believes they must not speak to anyone else about the request.

4. Data Theft (Non-Financial BEC)

Business Email Compromise attacks do not always aim for money.

• Definition Pattern: Data Theft is nothing but a BEC attack where the attacker requests sensitive, non-monetary information.
• The process: The attacker might impersonate an HR executive. They request employees' W-2 forms, tax data, or a list of company client information. This stolen data is later used for further attacks or sold on the dark web.

Also Read: Spear Phishing: Learn About #1 CEO fraud

How to Prevent Business Email Compromise (BEC)?

Protecting your company requires a multi-layered approach. The best defense against business email compromise scam is a combination of technology, policy, and employee training. So, how to prevent business email compromise effectively?

1. Implement Strong, Dual-Factor Verification

The most critical step is a policy of double-checking all payment requests.

• Sequential Pattern: First, establish a strict process for wire transfers. Then, make sure all employees follow it. Finally, implement two-factor authentication for email access.
• Action Verbs: The policy requires that any request to transfer money or change banking details must be verified outside of email. This means that the employee should call the requester's known number or use an internal messaging system to confirm the request. This serves as a critical checkpoint.

2. Use Email Security Tools and DMARC

Technology plays a vital role in stopping these emails before they reach the inbox.

• What is Business Email Compromise attack mitigation? Use Email Gateway Security tools. These tools help in spotting emails from lookalike domain names.
• Implement DMARC (Domain-based Message Authentication, Reporting, and Conformance). DMARC allows companies to tell email providers what to do with messages that falsely claim to be from their domain. This reduces the chance of a successful spoofing attack.

3. Educate Employees: The Human Firewall

Employees are the final defense line.

• Explanation Pattern: Security training provides the necessary knowledge, which ensures employees can spot the signs of a business email compromise scam.
• Training should focus on looking for these red flags:
  • Urgency: The email demands immediate action.
  • Unusual Requests: It asks for a payment to a new bank account.
  • Reply-To Address: The sender's email address looks slightly different.
  • Emotional Language: The email uses fear or pressure.
• The training should also include phishing simulation exercises. This allows employees to practice spotting fake emails in a safe environment.

4. Harden Payment Procedures

Payment procedures must be firm.

• The procedure requires two separate employees to approve large wire transfers.
• When a vendor changes their bank account, the Finance team must call the vendor's known contact number (not the one in the email) to verbally confirm the change.

Conclusion

In conclusion, Business Email Compromise (BEC) remains a critical threat, leveraging trust instead of technical flaws. Understanding the business email compromise meaning helps you fight it effectively. This highly targeted attack aims at forcing employees to make urgent, unauthorized financial transfers. To stop business email compromise, you must implement a strict verification process for all money and data requests. 

Always verify transfer requests outside of email communication, using a known phone number. Prioritize employee training and robust email security tools. We focus on providing the essential expertise and guidance that you need to protect your company's finances and maintain its vital security.

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Key Takeaways

So, with the above discussion, we can say that Business Email Compromise presents a clear and present danger to your financial security. The attack is sophisticated because it uses trust against you.

• Understanding is Key: Recognize that Business Email Compromise is nothing but a highly targeted social engineering scam that bypasses technical firewalls.
• Verify Everything: How to prevent business email compromise? Always implement a "verify, then execute" policy for any financial request, especially if the request comes with high urgency or a demand for secrecy. Do not use the reply button to verify.
• Continuous Training: Regular, real-world training helps in transforming your employees into a human firewall.

Frequently Asked Questions about Business Email Compromise

Now, the question arises: What are the most common questions people have about this kind of attack?

What is Business Email Compromise Also Known As?

Business Email Compromise is also known as CEO Fraud, Man-in-the-Email attack, or Email Account Compromise (EAC). It is a specific form of social engineering fraud that uses email to target a business.

What Is the Business Email Compromise Definition?

The Business Email Compromise Definition refers to the act of an attacker tricking an employee into sending money or data to the attacker by pretending to be a trusted figure, like an executive or a vendor, via email.

How to Stop Business Email Compromise?

To how to stop business email compromise, you must implement a multi-step verification process for all financial transfers and bank detail changes. This requires employees to confirm the request verbally on a known phone number, not through the email itself. Strong email filters and employee training play a vital role in this process.

Why Does Business Email Compromise Target Specific People?

Business Email Compromise targets specific people because the attacker aims at the employees who have the power to authorize financial transactions or access highly sensitive data. Focusing on these roles ensures the maximum chance of a big payoff.