Email is the lifeblood of business communication; without it everything grinds to a halt. With the threat of Business Email Compromise (BEC) more significant than ever, it’s essential for small to medium enterprises (SMEs) in particular to understand and mitigate this risk. This blog will unravel what BEC is, why it’s challenging to prevent and how businesses can protect themselves.
What is Business Email Compromise (BEC)?
BEC is an acronym that stands for business email compromise. This is a sophisticated cybercrime where scammers assume (/impersonate) the digital identity of a trusted email contact to trick the recipient into taking a desired action. Recipients are tricked into making a payment or purchase, sharing data or divulging sensitive information.
What does BEC Look Like?
BEC can take a few different forms and all look like legitimate emails. For example:
- Invoice Scams: Attackers hack into a vendor’s email and send fake invoices to the target company, redirecting payments to fraudulent accounts.
- Account Compromise: Attackers compromise the IT administrator’s account, who has full administrative access to the company’s accounts. They then are able to read and manipulate the emails of any other employee in the company and create more administrative users in order to maintain access.
- CEO Fraud: The attacker poses as a CEO or high-level executive, requesting an urgent payment or sensitive information. A sense of urgency is used to bypass verification.
- Payroll Manipulation: Attackers pose as HR personnel and request changes to an employee’s direct deposit information. As a result, the employee’s salary is redirected to the attacker’s account.
- W-2 Phishing: Attackers target HR departments during tax season, sending emails from the compromised company executive’s account requesting W-2 forms or other sensitive employee information. This data is then used for identity theft or tax fraud.
Why Are SMEs an Easy Target?
1 in 5 SMBs have transitioned to remote work without a cybersecurity plan, increasing their vulnerability to BEC and other cyber threats. Small to medium businesses are particularly susceptible to BEC for several reasons:
Resource Constraints
SMEs often lack the robust IT resources and cybersecurity infrastructure that larger organisations have, making it easier for cybercriminals to infiltrate their systems.
Limited Cybersecurity Training
Employees in SMEs might not receive comprehensive cybersecurity training, making them less aware of BEC and other cyber threats.
High Trust Culture
Smaller organisations often operate with a high degree of trust and have less stringent verification processes for financial transactions, which can be exploited by cybercriminals.
Preventing BEC is difficult due to its deceptive nature. Unlike typical phishing attacks, which can be relatively easy to spot, BEC attacks are heavily socially engineered and are carefully crafted and highly personalised. Cybercriminals often spend weeks or even months researching their targets, learning about organisational structures, email habits and business operations to create convincing fraudulent emails. This, together with weak authentication credentials, means that SMBs are easy targets.
How Can BEC be Combatted?
While completely preventing BEC is challenging, SMEs can take several proactive steps to mitigate the risk:
- Employee Training: Regularly educate employees about the dangers of BEC and other cyber threats. Training should cover how to identify suspicious emails and the importance of verifying requests through secondary channels.
- Email Security Solutions: Implement advanced email security solutions that can detect and block phishing attempts, malicious attachments, and suspicious email patterns.
- Verification Procedures: Establish strict protocols for verifying financial transactions and changes to payment details, such as requiring phone call confirmations or multi-level approvals for wire transfers.
- Access Controls: Limit access to sensitive information and systems based on role and necessity. Implement multi-factor authentication (MFA) to add an extra layer of security to email accounts.
- Incident Response Plan: Develop and maintain an incident response plan specifically for BEC. This plan should outline steps to take if an attack is suspected or detected, ensuring a swift and coordinated response to minimise damage.
How We Protect Against BEC
At IQPC we have advanced technology and specialised knowledge. Our powerful Managed Detection and Response (MDR) solution, included in our security services, secures your cloud identities and applications from BEC scams. By detecting and responding to suspicious user activity, permission changes and anomalous access behaviour, and backed by a 24/7 Security Operations Center (SOC) team, our solution empowers us to fight back against attackers on your behalf. With no gaps or lags in coverage, even during peak seasons, off hours, or holidays, we ensure your business is protected around the clock.
Every phishing email has the potential to be a business email compromise attempt. For SMEs, understanding the nature of BEC, recognising why they might be targeted and implementing robust security measures are critical steps in safeguarding against these sophisticated scams. By staying informed and proactive, and with the right cybersecurity partner, SMEs can significantly reduce their risk and protect their valuable assets from cybercriminals.
Business email compromise is a serious threat. We can help you stay protected. Talk to an IT expert today to learn how we can protect your business against BEC attacks!
