A Guide to Business Email Compromise Fraud
As an intricate web of cyber threats continues to loom over modern businesses, one particularly cunning adversary has emerged: Business Email Compromise (BEC) fraud. With its sophisticated tactics and devastating consequences, BEC fraud has become a significant concern for organisations of all sizes, across industries worldwide. In this blog, we delve into the depths of BEC fraud, exploring its modus operandi, impact and the measures your business can take to mitigate this pervasive threat.
Understanding BEC fraud
At its core, BEC fraud involves cybercriminals infiltrating business email accounts to conduct unauthorised transactions or extract sensitive information. Unlike traditional phishing attacks, which cast a wide net in the hope of hooking unsuspecting victims, BEC fraud is highly targeted. Perpetrators impersonate trusted entities like CEOs or vendors and manipulate employees, particularly those in finance or accounts departments, into transferring funds or divulging confidential data. In 2021, there were close to 5,000 reported BEC attacks on UK businesses, amounting to a staggering near £140m in financial losses.The anatomy of a BEC scheme
BEC schemes come in various forms, each tailored to exploit specific vulnerabilities within your business. Common strains of this particular cyber-crime include:-
CEO fraud
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Invoice fraud
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Account compromise
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Lawyer fraud
The toll of BEC fraud
The ramifications of falling victim to BEC fraud can be severe and far-reaching. Beyond the immediate financial losses incurred from unauthorised transactions, businesses may suffer reputational damage, legal liabilities and operational disruptions. Any loss of sensitive data can also expose your business to regulatory penalties and compromise the trust of your customers.Safeguarding against BEC fraud
To mitigate the risk of BEC fraud, businesses need to adopt a multi-faceted approach that combines technological solutions, robust policies and employee education. Key measures include:-
Email authentication
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Authorisation procedures
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Employee training
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Enhanced monitoring
More blogs which may be of interest:
Exploring the dark side of cyberspace - A guide to different types of malware Gone phishing - How to avoid this common cyber scamAny questions? Please don’t hesitate to contact one of our team.
Stuart.Belbin@ascendbroking.co.uk | Mobile: 07736 956213
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