How to Prevent a Business Email Compromise

21 November 2023

At a Glance

Business Email Compromise (BEC) attacks use impersonation, compromised accounts and social engineering to trick employees into revealing information or authorising fraudulent activity. These attacks can cause financial loss, reputational damage and operational disruption. Strong authentication, secure password practices, software updates, employee awareness training and verification of unusual requests can help businesses reduce their exposure.

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Business Email Compromise Attacks

Today, we live in an era where our business’ reliance on technology is continuously increasing. However, this reliance comes with its fair share of challenges, particularly the prevailing risk of cyber threats.

Among other cyber threats, Business Email Compromise (BEC) is becoming increasingly common and poses a significant risk to businesses worldwide.

In a business email compromise attack, fraudsters make fraudulent emails appear legitimate, leading to unauthorised access to your business’s sensitive information. They can use this information to complete fraudulent transactions, expose confidential data or interrupt your operations.

At Redpalm, we have extensive experience in providing cyber security services to businesses in and around Northampton, and are well-versed in the intricacies of BEC.

This guide explores how to identify a business email compromise, the risks associated with it and provides best practices to strengthen your defences.

What is a Business Email Compromise Attack?

A Business Email Compromise attack occurs when a cybercriminal gets unauthorised access to your business account. The worst type of BEC is the Business Takeover Attack, or Account Takeover (ATO), which involves the fraudster using manipulation tactics such as email phishing to access a company’s confidential information.

These tricks are used to take control of or gain access to one or more of a company’s business accounts. Additionally, in a BEC, fraudsters might pretend to be an employee of the targeted organisation, especially someone in higher management.

Hackers often target senior staff members through channels such as messenger services, phone calls or social media. One of the most common signs of a BEC attack is communication that revolves around sensitive business information.

How to Identify A Business Email Compromise?

A business email compromise can be difficult to spot because attackers often impersonate someone you already trust. It could be a senior employee, a business partner or a supplier. The email may skip the common modus operandi of attaching malicious attachments and instead ask you to do something, like transfer a payment or share sensitive data.

Here are some common warning signs that can help you identify a business email compromise:

An unexpected or unusually urgent payment request
A vendor asking you to use different bank details out of the blue
A request for passwords, financial details or confidential data
Unexpected emails from senior employees asking for urgent action
Small differences in a familiar sender’s email address or domain
Language or sign-off styles that seem off
Undue pressure to bypass your normal approval or payment process
Request to keep transactions confidential

These are common examples of what can lead to business email compromise. If you or your employees encounter such situations, it’s always best to verify before taking any action.

Risks Involved in a Business Email Compromise

1. Financial Loss

Amongst other grave risks, one of the worst consequences of a business email compromise is the huge financial burden it entails. Such attacks can drain your finances, as hackers can manipulate your financial data, redirect funds, or even make unauthorised transactions.

2. Reputational Damage

Trust and credibility are among the most important factors in building a strong reputation in the marketplace. A Business Email Compromise attack undermines these factors by misusing sensitive customer or client information or compromising confidential data.

To sidestep these risks, many organisations are adding an added layer of protection by implementing measures such as multi-factor authentication (MFA) to keep their emails more secure. This shift toward more advanced security measures further emphasises the importance of adopting robust methods to safeguard a business’s trust and credibility.

3. Disruption in Operations

During a BEC attack, your critical business processes might get interrupted, or your communication channels could be infiltrated, thereby disrupting your operations. As mentioned earlier, such attacks often involve fraudsters impersonating company personnel and exposing sensitive business information, which can damage your business in many ways.

Therefore, you must control and mitigate situations like these before they lead to operational disruptions. Rectifying these issues will require additional time and resources, further hindering your daily activities. The overall risk of financial, reputational and operational damage makes BEC a prominent threat to your business.

Best Practices to Prevent Business Email Compromise

BEC attacks are primarily carried out by using social engineering-based phishing attempts. The good news is that most of these instances can be prevented by training your employees to avoid human error. It is also essential to use additional security measures, including multi-factor authentication, to reduce the risk of impersonation or account takeover.

Here are some measures that you can implement to strengthen your defence against Business Email Compromise attacks:

Most BEC attacks stem from a user’s credential leak. Follow strong password practices. A great practice is using different passwords for your work and personal accounts. Additionally, avoid using obvious passwords like your date of birth or other easily guessable information.
Update all your software regularly to patch vulnerabilities and stay ahead of potential threats. Keeping your software current helps you fix weaknesses that fraudsters can exploit.
As you update your software, make sure all your employees know the latest updates and the security practices they need to follow.
Conduct regular employee training sessions that involve identifying the signs of a scam email, recognising phishing attempts and understanding the importance of verifying unusual requests.

Contact Redpalm to Safeguard Your Business Against Business Email Compromise Attacks and Other Cyber Threats

Now that you know how to identify the types of business email compromise and the associated risks, you can better safeguard your business. Even with these useful tips, you may still need professional help to protect your business in this changing technological landscape.

Redpalm is your reliable partner in safeguarding your business data and reputation against cyber threats. With our tailored solutions and team of cyber security experts, you can be confident you’re receiving the best protection.

As one of the leading cyber security service providers in the UK, we are committed to protecting your company from the ever-increasing challenges of the digital world.

We also offer services like Hybrid IT and technology procurement to ensure your company’s operations run smoothly and without issues.