Business email compromise (BEC) is one of the most prevalent and damaging types of fraud targeting businesses of all sizes. By exploiting human error and technological vulnerabilities, cybercriminals can cause significant financial and reputational damage to companies.

As a business owner, understanding BEC and taking proactive steps to combat it is essential to safeguarding your organization’s assets and relationships.

Impersonating a Trusted Individual

BEC is a sophisticated scam where fraudsters impersonate a trusted individual—such as a company executive, employee, vendor or client—to manipulate businesses into transferring funds into fraudulent accounts or sharing sensitive information such as log-in credentials. These scams often rely on email spoofing, phishing or hacking to deceive victims into believing the fraudulent communication is legitimate.

BEC attacks often involve requests for wire transfers or payments to new bank accounts, altered invoices that redirect payments to fraudulent accounts and unauthorized access to email accounts, which allows fraudsters to monitor and manipulate correspondence.

Taking Advantage of the Unsuspecting

BEC scams exploit both technical vulnerabilities and human trust. Here’s how they typically unfold:

1. Email Spoofing or Hacking. Cybercriminals gain access to or imitate a trusted email address. They may use phishing tactics to acquire login credentials or employ software to replicate email addresses convincingly.
2. Reconnaissance. Once inside an email account, fraudsters monitor conversations to identify financial transactions or gather information about business relationships.
3. Deception and Manipulation. Fraudsters send convincing messages—posing as an executive, vendor or client—to request payments, change account information or provide updated wiring instructions.
4. Execution. The unsuspecting recipient processes the fraudulent request, leading to financial loss or data compromise.

Taking Action to Protect Your Business

Preventing BEC requires a combination of technological tools, employee training and diligent verification processes. Here are a few actionable steps business owners can take to protect their organizations:

1. Verify Information Changes. One of the most effective ways to prevent BEC is to verify any requested changes to payment or account information with the requesting party. Use a known and trusted phone number rather than relying on email for confirmation. This diligence can help prevent funds from being sent to fraudulent accounts.
2. Implement Fraud Prevention Tools. Leverage services like Busey Bank’s ACH Positive Pay and ACH Debit Block to protect against unauthorized transactions. ACH Positive Pay monitors ACH transactions, matching them against an approved list to identify and prevent unauthorized activity. ACH Debit Block provides an additional layer of control by blocking unauthorized debits from your accounts.
3. Educate Employees. Conduct regular training to help employees identify phishing emails, suspicious requests and other red flags. Encourage a culture of vigilance and communication.
4. Use Multifactor Authentication (MFA). Require MFA for all business email accounts to reduce the risk of unauthorized access.
5. Secure Your Technology. Regularly update software, use strong passwords and implement email security protocols to protect your organization from spoofing.
6. Monitor Accounts and Transactions. Regularly review account activity and establish approval workflows for financial transactions to detect irregularities early.

Protecting Your Business with Busey Bank

Business email compromise is a serious threat, but with diligence, education and the right resources, you can significantly reduce the amount of risk faced by your business. At Busey Bank, our Treasury Management team brings a wealth of expertise and experience to the table, offering tailored solutions designed to enhance your organization's security. To learn more about how Busey can help you safeguard your business, visit busey.com/treasurymanagement.

If you are already a Busey customer, please contact your Busey Relationship Manager or Treasury Management Specialist with any questions or for additional details on our fraud protection solutions. You can also check out Busey’s Fraud Prevention FAQs in order to learn more about how to protect yourself, your information and your business from fraudulent activity.