Do you receive compromising business emails?
Hello reader and welcome back to another blog. Today, we'll be delving into the crucial topic of safeguarding your business email from potential threats. Last year, there was an alarming 81% surge in business email compromise incidents, making it imperative that we address preventive measures.
In our modern world, email has become an integral part of both our personal and business interactions, facilitating communication on various levels. Unfortunately, with the rise of digital technology, cybercrime has grown in parallel, and one significant threat faced by businesses today is Business Email Compromise (BEC).
Understanding the gravity of this issue is crucial because BEC attacks have been on the rise. In 2022 alone, these attacks increased by a staggering 81%, with a shocking 98% of employees failing to report such threats.
So, what exactly is Business Email Compromise (BEC)?
In essence, BEC is a deceitful scam in which criminals use fraudulent emails to target both businesses and individuals, with a specific focus on those engaged in wire transfer payments.
Typically, scammers impersonate high-ranking executives or trusted business partners, sending well-crafted emails to employees, customers, or vendors, requesting them to initiate payments or transfer funds in various ways.
To grasp the seriousness of the situation, consider that BEC scams cost businesses around $1.8 billion in 2020, and that figure escalated to a staggering $2.4 billion in 2021, causing severe financial harm and tarnishing the reputations of many victims.
How does BEC work?
The mechanics of BEC attacks are complex and sophisticated, making them challenging to identify. The attackers begin by conducting thorough research on their target organizations and employees, gathering information about the company's operations, suppliers, customers, and partners, often found freely available on platforms like LinkedIn, Facebook, and the organizations' websites.
Armed with this knowledge, the scammers can craft emails that appear incredibly convincing, seemingly originating from high-ranking executives or trusted business associates. Urgency and confidentiality are emphasized, compelling the recipient to act swiftly, leaving them with little time to verify the authenticity of the request.
Social engineering tactics are commonly employed, such as masquerading as a familiar contact or creating counterfeit websites that mimic the legitimate company site, all of which contribute to the email's illusion of legitimacy.
To combat the rising tide of Business Email Compromise, proactive measures can be taken by both businesses and individuals:
Educate Employees: Organizations should educate their staff about the risks of BEC and provide training on identifying and avoiding such scams. Employees should be familiar with common tactics used by scammers, such as urgent requests, social engineering, and fake websites.
Enable Email Authentication: Implementing email authentication protocols like Domain-based Message Authentication, Reporting, and Conformance (DMARC), Sender Policy Framework (SPF), and DomainKeys Identified Mail (DKIM) can verify the authenticity of sender email addresses and reduce the risk of email spoofing or phishing attempts.
Deploy Payment Verification Processes: Organisations should establish verification processes, like two-factor authentication or multiple-party confirmation, to ensure all wire transfer requests are legitimate, involving more than one person in verifying financial payment requests.
Check Financial Transactions: Regularly review financial transactions for any irregularities, unexpected wire transfers, or changes in payment instructions. Setting up a schedule for financial transaction reviews is essential to avoid overlooking potential threats.
Establish a Response Plan: Businesses should develop a response plan for BEC incidents, including clear procedures for reporting such incidents, freezing transfers, and notifying law enforcement when necessary.
Use Anti-phishing Software: Employing anti-phishing software, leveraging AI and machine learning, can effectively detect and block fraudulent emails, offering an additional layer of protection against potential threats.
At KVD Group, we take email security seriously, and our cutting-edge solutions are designed to safeguard your business. Don't risk falling victim to scams; reach out to us today to discuss our email security solutions and keep your business safe from harm. Remember, acting now can prevent consequences later on.