Protect Your Business: Understanding and Preventing Business Email Compromise (BEC)

Cybersecurity threats are constantly evolving, and one of the most alarming trends in recent years is the rise of Business Email Compromise (BEC). At its core, BEC is when a hacker takes over an email account, often with the goal of gaining access to sensitive information, facilitating financial fraud, or launching broader cyber-attacks. At 4BIS, we have seen a large increase in business email compromise attempts in the Cincinnati, OH area over the past 6 months. Find out below how to keep your business safe.

What is Business Email Compromise?

Business Email Compromise occurs when a cybercriminal gains access to a legitimate email account, often through phishing attacks or other social engineering tactics. Once inside, they exploit that trust to deceive others into sharing sensitive information or initiating fraudulent financial transactions. Hackers may use this foothold to:

• Steal financial data or other proprietary information.
• Gain access to more privileged accounts within the organization.
• Intercept financial transactions by modifying payment instructions or invoices.

The impact of BEC can be devastating for a business, resulting in substantial financial losses and compromised sensitive information.

How Does BEC Work?

The typical BEC scenario starts when an employee, vendor, or trusted partner’s email account is compromised. Here’s how the attack unfolds:

1. Phishing Attack: The victim receives an email with a seemingly legitimate attachment or link, prompting them to input their Office 365 or email credentials. Once these credentials are entered, the hacker gains access to the account.
2. Hijacked Communication: The attacker monitors the compromised email account, often without immediate action, waiting for the right opportunity—such as a financial transaction or the exchange of sensitive documents.
3. Interception of Financial Transactions: When the moment is right, the hacker intervenes in an ongoing email thread to alter payment instructions, either by changing account numbers or redirecting funds to an account under their control.
4. Spreading the Attack: In many cases, the hacker sends out emails to hundreds of the victim’s contacts, sharing malicious links or documents, further propagating the attack to other organizations.

Common Tactics Used in Business Email Compromise

BEC attacks are often difficult to detect because they are designed to mimic regular business activities. Here are the most common tactics:

1. Phishing Links and Attachments: The attacker sends a seemingly legitimate email, often from a trusted colleague or business partner, asking the recipient to click a link or download an attachment. This usually leads to a request for Office 365 or other login credentials.
   • Red Flag: Always be cautious of attachments or links that ask for your credentials. If you’re not expecting to provide login information, pause and verify before proceeding. If you click on an attachment that does not open, contact your IT. The attachment may have tried to install malicious software.
2. Fake Payment Requests: In some cases, attackers intercept communication about a financial transaction, modifying account details to redirect payments. They might send an invoice with fraudulent payment instructions or request a change to a vendor’s payment gateway.
   • Red Flag: Any sudden changes in payment instructions should be verified by calling the sender through a known, trusted number—never by replying to the suspicious email.
3. Account Monitoring: Once hackers gain access to an email account, they may lie in wait, monitoring communication until the perfect opportunity arises to carry out a financial fraud.
   • Red Flag: Missing emails or phone calls from people you know asking if you sent suspicious emails.

How to Protect Your Business from Business Email Compromise

The key to defending against BEC is to be proactive and aware of the warning signs. Here’s how you can protect your business:

1. Educate Employees: Train your staff to recognize phishing attempts, unexpected requests for credentials, and changes in financial transactions. Encourage a healthy level of skepticism and stress the importance of verifying any unusual requests.
2. Implement Multi-Factor Authentication (MFA): By requiring multiple forms of verification before logging into email accounts, you can significantly reduce the risk of unauthorized access.
3. Monitor for Indicators of Compromise: Any modern IT team or cybersecurity service provider should be vigilant about detecting Indicators of Compromise (IoCs), which can help identify when an account has been breached.
4. Quick Response: If an attack is suspected, act quickly. Contact your IT team immediately to investigate and take steps to mitigate damage. Modern cybersecurity tools can help track down the breach and protect your organization.
5. Verify Payment Changes: Always confirm changes in payment instructions through a secure, out-of-band method such as a phone call or face-to-face verification.

A Collaborative Approach to Cybersecurity

Cybersecurity isn’t a one-time effort; it’s a mindset that requires constant vigilance and collaboration. BEC attacks thrive on complacency and a lack of communication between team members. By adopting a proactive approach and working closely with your IT team, you can reduce your organization’s risk of falling victim to a BEC attack.

At 4BIS, we’re dedicated to helping businesses stay secure in a rapidly changing cyber threat landscape. If you have concerns or questions about cybersecurity, don’t hesitate to reach out. Our experts are here to guide you through best practices and strategies to keep your business safe.

Together, we can fight back against Business Email Compromise and other emerging cyber threats.