The Pursuit: Protect Your Business from Email Compromise Fraud

In today’s digital world, cybercriminals are constantly finding new ways to exploit businesses and individuals. One of the most common and costly threats is Business Email Compromise (BEC) fraud – a sophisticated scam where cyber criminals impersonate trusted individuals – such as executives, vendors, or financial institutions – to manipulate businesses into sending money or sensitive information. Unlike brute-force attacks, BEC relies on deception and social engineering, making it harder to detect. These scams often involve:

• Urgent wire transfer requests to fraudulent accounts.

• Changes in payment details from seemingly legitimate vendors. 

• Requests for confidential information, such as login credentials, employee payroll data, or tax records.
• Gift card scams involving an email that appears to come from a manager asking an employee to buy and send gift card codes.  
  

The Impact of BEC Fraud

BEC scams continue to grow, affecting businesses of all sizes. According to the FBI’s Internet Crime Complaint Center (IC3) 2023 Annual Report:   

• BEC losses exceeded $2.9 billion in 2023, with 21,489 reported incidents. This translates to an average loss of approximately $135,000 per attack.

• In 2022, there were 21,832 BEC complaints with losses over $2.7 billion, indicating a 7.4% increase in losses from 2022 to 2023

How to Spot a BEC Scam 

Cybercriminals rely on trust and urgency to bypass security measures. Stay vigilant for these red flags:    

• Urgent or unusual payment requests, especially if the request comes out of the blue.  
• Changes in payment details, such as a vendor suddenly requesting payments to a new bank account. 
• Slight variations in email addresses, such as a domain name that’s misspelled (e.g., “@oldglorybank” vs. “@0ldglorybannk”).
• Requests for secrecy, where the sender insists on keeping the transaction confidential.
• Poor grammar or unusual language, which can indicate an email isn’t from the real sender. 

How To Prevent BEC Fraud

BEC scams continue to grow, affecting businesses of all sizes. According to the FBI’s Internet Crime Complaint Center (IC3) 2023 Annual Report:   

• If you receive an email requesting payment or sensitive information, verify it using a known phone number or in person. 

• Educate employees on BEC scams and encourage them to question suspicious emails.
• Provide training on recognizing phishing attempts and social engineering tactics. 
   
  
   

• Use multi-factor authentication (MFA) for email accounts to prevent unauthorized access. 
• Enable email filtering to block phishing attempts and spoofed addresses.
  

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  Establish internal safeguards like dual approvals for large payments.  
• Regularly review financial accounts to detect unauthorized activity.

• Report it to your bank immediately and request that they contact the financial institution where any transfer was sent.
• Contact local law enforcement and file a complaint with the FBI’s Internet Crime Complaint Center (IC3).  

At Old Glory Bank, we believe that privacy, security, and liberty go hand in hand. Your business should have the freedom to operate without the threat of deception and financial fraud. As BEC scams become more sophisticated, protecting your assets starts with awareness, vigilance, and strong security practices.  

By verifying payment requests, securing communications, and educating your team, you can take control of your financial security and prevent cybercriminals from exploiting your trust. If you encounter any suspicious activity related to your account, please contact our Customer Service team at 888-446-5345 Monday through Saturday, 8:00 a.m. to 8:00 p.m. Central Time.