Protecting Your Small Business from Business Email Compromise (BEC)

Business Email Compromise (BEC) is a sophisticated and costly cyber threat that targets businesses of all sizes, but small businesses can be particularly vulnerable. Unlike malware or ransomware attacks, BEC attacks rely on social engineering tactics to manipulate employees into transferring funds or divulging sensitive information. This blog post will explain what BEC is, how it works, and how you can protect your small business from these deceptive attacks.

What is Business Email Compromise (BEC)?

BEC attacks typically involve cybercriminals impersonating trusted individuals, such as executives, vendors, or clients, through compromised or spoofed email accounts. They use these accounts to send fraudulent emails that appear legitimate, tricking employees into performing unauthorized actions.

How BEC Attacks Work:

BEC attacks can take various forms, but some common scenarios include:

• CEO fraud: The attacker impersonates the CEO or another high-ranking executive, instructing an employee to wire funds to a fraudulent account. These emails often create a sense of urgency or secrecy to pressure the employee into acting quickly.

• Invoice fraud: The attacker compromises a vendor's email account and sends fraudulent invoices to the target business, requesting payment to a different bank account.

• Account compromise: The attacker gains access to an employee's email account and uses it to send fraudulent emails to other employees or clients.

• Attorney impersonation: The attacker impersonates a lawyer or legal representative, requesting confidential information or payment for fabricated legal matters.

Why are Small Businesses Targeted by BEC Attacks?

Small businesses are often targeted by BEC attacks because they may have:

• Less robust security controls: Smaller businesses may have fewer security measures in place compared to larger enterprises, making them easier targets.

• Less cybersecurity awareness training: Employees may not be adequately trained to recognize the signs of a BEC attack.

• Faster transaction processes: Smaller businesses may have less formal approval processes for financial transactions, making it easier for attackers to exploit vulnerabilities.

Protecting Your Small Business from BEC Attacks:

Here are some crucial steps you can take to protect your business:

• Educate your employees: Conduct regular cybersecurity awareness training to educate employees about BEC scams and how to recognize them. Emphasize the importance of verifying any unusual requests, especially those involving financial transactions.

• Implement strong email security measures: Use spam filters, anti-phishing software, and email authentication protocols (such as SPF, DKIM, and DMARC) to help block malicious emails.

• Verify requests through multiple channels: Establish procedures for verifying requests for wire transfers or other sensitive actions through multiple channels, such as phone calls or in-person verification. Never rely solely on email.

• Implement multi-factor authentication (MFA): Enable MFA for all email accounts and other critical systems. This adds an extra layer of security by requiring a second form of verification.

• Establish clear financial procedures: Implement clear and documented procedures for financial transactions, including approval processes and verification steps.

• Be wary of urgent or unusual requests: Be suspicious of any email that creates a sense of urgency or secrecy, especially if it involves financial transactions.

• Regularly review bank statements: Regularly review bank statements and transaction records for any unauthorized activity.

• Keep software updated: Ensure all software and operating systems are updated with the latest security patches.

What to Do If You Suspect a BEC Attack:

If you suspect you've been targeted by a BEC attack:

• Immediately notify your bank: Contact your bank immediately to stop any unauthorized transactions.

• Report the incident to law enforcement: File a report with the FBI's Internet Crime Complaint Center (IC3).

• Contact your IT department or cybersecurity provider: Seek professional help to investigate the incident and implement corrective measures.

BEC attacks can have significant financial and reputational consequences for small businesses. By implementing these preventive measures and educating your employees, you can significantly reduce your risk of becoming a victim. Don't let your business get ghosted by a BEC scam – take action today.