Recognizing Business Email Compromise (BEC) scams.

Business Email Compromise (BEC) scams prey on trust and are growing more sophisticated every year. These attacks use phishing and social engineering to manipulate employees into transferring funds or sharing sensitive company information. According to an FBI Internet Crime Report^[PDF], BEC schemes have cost U.S. businesses billions of dollars in recent years. Unlike more generic cyberattacks, BEC scams are highly personalized and often difficult to detect until it’s too late.

The good news is that awareness, training and consistent verification processes can dramatically reduce your company’s risk. Understanding how these scams work and recognizing the red flags is the first step toward better protecting your business.

What is a BEC attack?

In a BEC attack, a cybercriminal poses as someone your employees trust: a company executive, vendor or business partner. Using a convincing email that appears legitimate, the attacker requests a wire transfer, payment change or access to confidential data. Once the money is sent or the data is shared, it’s usually gone for good. Fraudsters move quickly, often transferring funds across multiple accounts or overseas, making recovery extremely difficult.

BEC attacks typically fall into three main categories:

• CEO compromise: The attacker gains access to or mimics an executive’s email account, sending a message that appears to come directly from leadership. Messages often ask an employee to urgently wire funds, purchase gift cards or send sensitive data.
• Vendor compromise: A fraudster hacks or imitates a vendor’s email address and requests payment to a new account. Requests from familiar partners are often trusted without question.
• Employee compromise: Attackers target employees who handle payroll or invoices. Once they gain control of an account, they send legitimate-looking payment instructions to coworkers or clients.

While these attacks take different forms, they share one goal: exploiting trust and urgency.

How BEC scams work.

BEC scams are dangerous because attackers prepare carefully. Criminals are extremely diligent in studying their targets. They study a company’s hierarchy, processes and communication style using public information such as websites, press releases and social media. This research helps them craft believable messages. Scammers might time the attack when a CEO is traveling or a finance leader is out of office, knowing that verification will be harder. Some even monitor real email conversations for weeks before sending a fake message that continues the thread seamlessly. Attackers use one or more of the following tactics:

• Phishing: An employee receives an email that includes a malicious link or attachment. Clicking it allows access the employee’s email account.
• Domain spoofing: The attacker creates an email address that closely resembles a real one — for example, replacing “.com” with “.co” or swapping one letter in the company name.
• Email forwarding rules: After accessing a legitimate account, a fraudster may set up automatic forwarding to monitor messages or intercept payment confirmations.

BEC schemes often include language that conveys urgency or secrecy, such as a confidential request from the CEO or a vendor claiming an overdue payment. The attacker counts on employees wanting to act quickly to help.

Signs of a potential BEC email.

Although these scams can be sophisticated, there are common signs that may help employees recognize a suspicious message:

• A sender address that looks slightly off from the legitimate domain.
• Urgent or confidential requests that deviate from normal business practices.
• Vague explanations for how funds will be used.
• Poor grammar, unusual tone or inconsistent formatting.
• Pressure to complete the request immediately.
• A request to confirm once a wire transfer has been sent.

If you or your team receive a suspicious email, don’t reply or click any links. Follow your company’s defined response process or report it to your manager or IT team immediately.

How to reduce your risk.

No organization is immune to BEC scams, but taking proactive steps can help. A strong defense combines technology, employee training and verification procedures. Consider these best practices:

• Train employees regularly. Include BEC awareness as part of your cybersecurity training program. Reinforce how to identify suspicious messages and what to do when one is received.
• Verify every transfer. Never authorize or initiate a wire transfer based solely on an email request, even if it appears to come from leadership. Call the person directly using a known phone number to confirm.
• Implement dual controls. Require two people to review and approve all payment requests or changes to vendor account details.
• Use multifactor authentication (MFA). Adding an extra layer of protection makes it harder for criminals to access email or financial systems, even if a password is compromised.
• Secure vendor relationships. Confirm all changes to vendor payment information with two-factor authentication.
• Limit public information. Avoid posting financial or personnel details online that could help scammers impersonate your organization.
• Register similar domains. Protect your brand by purchasing web domains that resemble your company’s name, including common misspellings or alternative endings like “.co” or “.net.”
• Test and review regularly. Conduct phishing simulations and social engineering tests to measure employee awareness and update your policies based on results.

These actions not only help in mitigating BEC attacks, they also strengthen your company’s overall cybersecurity posture.

Building a culture of awareness.

Technology plays an important role in cybersecurity, but people remain the first line of defense. Encouraging a culture of curiosity and caution can be one of the most effective ways to stop a scam before it succeeds. Create an environment where employees feel comfortable slowing down, asking questions and verifying requests, even if it means delaying a transaction. Remind them that taking a few extra minutes to confirm a request could save the company from significant financial loss. It’s also helpful to share examples of real-world scams during team meetings or training sessions. When employees understand how these situations unfold, they’re better equipped to recognize similar patterns in their own inboxes.

Stay informed.

BEC scams continue to evolve, but they rely on the same principle: exploiting human trust. By combining education, vigilance and verification, you can help recognize one of today’s most costly forms of cybercrime. A discerning eye — and a quick phone call — can make all the difference.

If you suspect a BEC attack, contact your financial institution immediately and report the incident to the FBI’s Internet Crime Complaint Center link opens in a new window.