What is Business Email Compromise (BEC)?

Business Email Compromise (BEC) is a type of cybercrime that targets businesses and individuals by exploiting trust within email communications. Attackers gain unauthorized access to legitimate business email accounts or spoof trusted email addresses to deceive employees, partners, or customers into making fraudulent financial transactions or disclosing sensitive information.

Unlike traditional phishing attacks that cast a wide net, BEC attacks are highly targeted and often involve extensive social engineering. Cybercriminals research their victims to craft convincing emails, impersonate executives, and manipulate employees into wiring funds, sharing confidential data, or granting access to critical systems.

An example of a BEC fraud email, where an attacker impersonates a company executive

The Dangers of BEC

BEC attacks can have severe financial and operational consequences for organizations, including:

• Financial Losses: BEC scams have resulted in billions of dollars in losses globally. Because they often involve authorized wire transfers, recovering funds is difficult.
• Data Breaches: Attackers may use BEC tactics to gain access to sensitive company data, leading to compliance violations and reputational damage.
• Disruption to Business Operations: Fraudulent emails can lead to confusion, distrust, and disrupted workflows, affecting employee productivity and client relationships.
• Legal and Regulatory Consequences: Depending on the industry and region, businesses may face penalties if they fail to secure their communication channels and prevent BEC-related data breaches.

How BEC Works

BEC attacks typically follow a multi-step process:

1. Reconnaissance: Attackers research their targets using publicly available information (e.g., company websites, LinkedIn, social media) to identify key personnel and business processes.
2. Email Spoofing or Account Compromise: Criminals either spoof a legitimate email domain or gain access to an employee’s email account through phishing or credential theft.
3. Social Engineering: The attacker crafts a convincing email using urgency, authority, or confidentiality to manipulate the recipient into taking action.
4. Execution: The target follows the attacker’s instructions, often sending a wire transfer, sharing login credentials, or providing sensitive business information.
5. Exfiltration: Once the funds or data are obtained, the attacker quickly transfers them to untraceable accounts, often through a network of money mules.

Types of BEC Attacks

Cybercriminals use various BEC tactics to manipulate their targets. Some of the most common include:

1. CEO Fraud – Attackers impersonate executives or high-ranking officials to request urgent wire transfers or sensitive information.
2. Invoice Scams – Criminals compromise supplier emails or create lookalike domains to send fraudulent invoices, redirecting payments to their accounts.
3. Payroll Diversion – HR or finance teams are tricked into updating direct deposit information, sending employee wages to attacker-controlled accounts.
4. Account Compromise – Attackers hijack a legitimate email account to send requests for financial transactions or confidential data.
5. Legal or Government Impersonation – Threat actors pose as attorneys, regulators, or law enforcement officials to pressure employees into making payments or revealing sensitive information.

How to Avoid and Mitigate the Risk of BEC

Protecting against BEC requires a combination of technological solutions, employee awareness, and strong security policies. Here are key measures to reduce the risk:

Email Security Measures

• Implement multi-factor authentication (MFA) for email accounts to prevent unauthorized access.
• Use email authentication protocols like SPF, DKIM, and DMARC to detect and prevent email spoofing.
• Enable advanced threat detection solutions that can identify suspicious login attempts and unusual email behaviors.

Employee Awareness and Training

• Conduct regular cybersecurity training to educate employees on recognizing phishing emails and social engineering tactics.
• Encourage employees to verify unusual requests by phone or other trusted communication channels before taking action.
• Establish a clear process for handling financial transactions, requiring multiple approvals for wire transfers or changes to payment details.

Incident Response and Investigation

• Have a BEC response plan in place, including steps for reporting and mitigating incidents.
• Monitor login activity and email forwarding rules for signs of unauthorized access.
• Use digital forensics and security tools to investigate potential BEC incidents and prevent further damage.

M365 UAL In the Cado Platform 

Business Email Compromise is a growing threat that exploits trust and social engineering rather than technical vulnerabilities. Organizations must adopt a proactive security strategy, combining technology, employee training, and strong policies to reduce the risk. By leveraging solutions like the Cado Platform, businesses can quickly detect, investigate, and respond to BEC incidents, minimizing financial and reputational damage.

Are you ready to enhance your organization's resilience against BEC? Contact our team to schedule a demo and learn how Cado can help.