Understanding Business Email Compromise
What is BEC?
BEC is a type of cybercrime where an attacker gains access to a company’s email system or an employee account and uses it to conduct fraudulent activities. This can include impersonating an executive or employee, using phishing emails to gain access to sensitive information, or requesting fraudulent bank transfers.
How does BEC work?
BEC scams usually involve a three-step process: reconnaissance, infiltration, and exploitation. The attacker first researches the targeted company and identifies potential victims. They then infiltrate the company’s email system through phishing attacks or malware. Finally, they exploit the system by impersonating an executive or employee and requesting fraudulent payments or sensitive information.
Who is vulnerable to BEC attacks?
Any organisation that uses email to conduct business is vulnerable to BEC attacks. However, small and medium-sized businesses (SMEs) are particularly at risk due to their limited cyber security resources and less formalised internal controls.
Risks of Business Email Compromise
Financial Loss
The primary risk associated with BEC is financial loss. Fraudulent wire transfers or payments can result in significant financial damage to a company, which may not be covered by insurance.
Reputation Damage
A successful BEC attack can also damage a company’s reputation. Customers, partners, and other stakeholders may lose trust in the company’s ability to protect sensitive information.
Regulatory and Legal Consequences
Companies that suffer a BEC attack may also face regulatory and legal consequences. In some cases, they may be required to disclose the attack to customers or regulatory authorities, resulting in negative publicity and potential legal liabilities.
Best Practices to Mitigate BEC Risks
One of the most effective ways to mitigate BEC risks is through employee training. Employees should be educated on how to identify phishing emails, avoid clicking on suspicious links or attachments, and verify the authenticity of any payment or information request.
Two-Factor Authentication
Two-factor authentication (2FA) can also help mitigate BEC risks. 2FA requires users to provide two forms of identification before accessing an account, making it more difficult for attackers to gain unauthorised access.
Formalised Internal Controls
Companies can also mitigate BEC risks by formalising their internal controls. This includes implementing policies and procedures for authorising wire transfers or sensitive information requests, as well as conducting regular audits and reviews of email activity.
Conclusion
Business Email Compromise is a growing threat to organisations of all sizes. BEC attacks can result in significant financial loss, damage to reputation, and regulatory and legal consequences. To mitigate these risks, companies should focus on employee training, two-factor authentication, and formalised internal controls. By following these best practices, organisations can better protect themselves against BEC attacks.
The LoughTec SOC is responsible for detecting, analysing and responding to security incidents in real-time delivered through software, technology and (human) security analysts. In addition to 24/7 monitoring and management, the SOC helps organisations maintain security policies and procedures, deliver training and provide regular reports on our customers’ security posture.
Talk to Cyber Security Company LoughTec today on how we can protect you from Business Email Compromise with 24/7/365 real-time response. Book a demo by calling +44 (0) 2882 252 445 or emailing protect@loughtec.com.
