Managing the risks of corporate email compromise in the modern era

Sophisticated cybercrimes known as business email compromise (BEC) schemes target both individuals and corporations by deceiving them into transmitting money or sensitive information to fraudulent actors.

Tyree Schoen

March 06, 2024

1Min Read

145

Wealth

As to the findings of ACA Group, these attacks are frequently carried out using phishing emails that are designed to mimic the appearance of a reliable source, such a reputable vendor or a high-ranking executive of the firm. Usually, the emails prey on the recipient's trust and sense of urgency by requesting sensitive data or money transactions.

Money laundering can occur from the cash acquired through BEC schemes, which makes it easier for gains that are obtained illegally to enter the financial system. For example, an employee may get a bogus email directing them to transfer funds to a certain account, purporting to be from a business leader. If the transfer of funds is not properly verified, it ends up in the hands of criminals, who use it for money laundering purposes.

Another way money is laundered in BEC operations is through invoice fraud. Fraudulent emails are sent by attackers pretending to be vendors or suppliers, demanding money for inflated or nonexistent bills. The scammers use the money they get from these payments to further their illicit activities.

Businesses need to strengthen their email security protocols, integrating tools like spam filters and deploying two-factor authentication, to protect against the threat posed by BEC. It is essential to educate employees so they can recognize and report suspicious emails. Another crucial step in stopping BEC fraud is to confirm the authenticity of information requests and payment requests.

If you become a victim of a BEC attack, you need to take quick action. You should notify police enforcement and get legal advice. Timely notification can help mitigate the damage on the firm by averting future assaults and assisting in the recovery of lost funds.