In recent years, electronic mail (email for short) has become an essential part of our daily lives. Many people use it for various purposes, including business transactions. With the increasing dependence on digital technology, cybercrime has grown. A significant cyber threat facing businesses today is Business Email Compromise (BEC).
Why is it important to pay particular attention to BEC attacks? Because they’ve been on the rise. BEC attacks jumped 81% in 2022, and as many as 98% of employees fail to report the threat.
Business Email Compromise (BEC) is a type of scam in which criminals use email fraud to target victims. These victims include both businesses and individuals. They especially target those who perform wire transfer payments.
The scammer pretends to be a high-level executive or business partner. Scammers send emails to employees, customers, or vendors. These emails request them to make payments or transfer funds in some form.
According to the FBI, BEC scams cost businesses around $1.8 billion in 2020. That figure increased to $2.4 billion in 2021. These scams can cause severe financial damage to businesses and individuals. They can also harm their reputations.
BEC attacks are usually well-crafted and sophisticated, making it difficult to identify them. The attacker first researches the target organization and its employees. They gain knowledge about the company’s operations, suppliers, customers, and business partners.
Much of this information is freely available online. Scammers can find it on sites like LinkedIn, Facebook, and organizations’ websites. Once the attacker has enough information, they can craft a convincing email. It's designed to appear to come from a high-level executive or a business partner.
The email will request the recipient to make a payment or transfer funds. It usually emphasizes the request being for an urgent and confidential matter. For example, a new business opportunity, a vendor payment, or a foreign tax payment.
The email will often contain a sense of urgency, compelling the recipient to act quickly. The attacker may also use social engineering tactics. Such as posing as a trusted contact or creating a fake website that mimics the company's site. These tactics make the email seem more legitimate.
If the recipient falls for the scam and makes the payment, the attacker will make off with the funds. In their wake, they leave the victim with financial losses.
Check out our take on the Top 5 Cybersecurity Mistakes That Leave Your Data at Risk.
BEC scams can be challenging to prevent. But there are measures businesses and individuals can take to cut the risk of falling victim to them.
Organizations should educate their employees about the risks of BEC. This includes providing training on how to identify and avoid these scams. Employees should be aware of the tactics used by scammers. For example, urgent requests, social engineering, and fake websites.
Training should also include email account security, including:
You may be asking yourself, "How often should I train my employees on Cybersecurity?" Well, we have that exact answer in our How Often Do You Need to Train Employees on Cybersecurity Awareness article. Check that out for some more perspectives on this topic.
Organizations should implement email authentication protocols.
This includes:
These protocols help verify the authenticity of the sender's email address. They also reduce the risk of email spoofing. Another benefit is to keep your emails from ending up in junk mail folders.
Organizations should deploy payment verification processes, such as two-factor authentication. Another protocol is confirmation from multiple parties. This ensures that all wire transfer requests are legitimate. It’s always better to have more than one person verify a financial payment request.
Organizations should check all financial transactions. Look for irregularities, such as unexpected wire transfers or changes in payment instructions.
If you don’t perform these according to a schedule, it is easy for them to get forgotten. Set up a calendar item for the review of financial transactions. Use a schedule that makes sense for your business and transaction volume.
Organizations should establish a response plan for BEC incidents. This includes procedures for reporting the incident. As well as freezing the transfer and notifying law enforcement.
Businesses and individuals can use anti-phishing software to detect and block fraudulent emails. As AI and machine learning gain widespread use, these tools become more effective.
The use of AI in phishing technology continues to increase. Businesses must be vigilant and take steps to protect themselves.
It only takes a moment for money to leave your account and be unrecoverable. Don’t leave your business emails unprotected. Give us a call today to discuss our email security solutions.
This Article has been Republished with Permission from The Technology Press.
What would you do if your business suffered a ransomware attack tomorrow? Do you have a contingency plan in case of a tornado, hurricane, or earthquake? The unexpected can happen anytime, and small businesses can get hit particularly hard.
Small businesses are the backbone of many economies. They are critical for job creation, innovation, and community development. But running a small business comes with significant risks. This includes financial uncertainty, market volatility, and natural disasters.
60% of small businesses fail within 6 months of falling victim to a cyber-attack.
Thus, small business owners must prepare for the unexpected. This is to ensure their longevity and success. In this article, we will discuss some tips to help small businesses get ready for anything.
One of the most critical steps in preparing for the unexpected is to create a contingency plan. A contingency plan is a set of procedures that help a business respond to unforeseen events. Such as natural disasters, supply chain disruptions, or unexpected financial setbacks.
The plan should outline the steps the business will take in the event of an emergency. Including who will be responsible for what tasks. As well as how to communicate with employees, customers, and suppliers.
Small businesses should always maintain adequate insurance coverage. This protects them from unexpected events. Insurance policies should include things like:
Business interruption coverage is particularly important. It can help cover lost income and expenses during a disruption. Such as a natural disaster or supply chain disruption.
One of the newer types of policies is cybersecurity liability insurance. In today’s threat landscape, it has become an important consideration. Cybersecurity insurance covers things like costs to remediate a breach and legal expenses.
Small businesses that rely on a single product or service are at greater risk. Unexpected events can cause them significant harm. Something like a raw material shortage could cripple an organization without alternatives.
Diversifying your revenue streams can help reduce this risk. It ensures that your business has several sources of income. For example, a restaurant can offer catering services. A clothing store can sell merchandise online as well as its physical location.
Small businesses should build strong relationships with their suppliers. This ensures that they have a reliable supply chain. This is particularly important for businesses relying on one supplier for their products.
In the event of a disruption, having strong relationships matters. It mitigates the risk of a supplier bankruptcy or supply chain issue. Having supplier options can help reduce the impact on your business.
Small businesses should keep cash reserves to help them weather unexpected events. Cash reserves can help cover unexpected expenses. Such as repairs, legal fees, or loss of income. As a general rule of thumb, businesses should keep at least six months' worth of expenses in cash reserves.
If business owners try to do everything in house, they’re at higher risk. For example, if a key IT team member quits. In this case, the company could face major security issues.
Build strong outsourcing relationships with an IT provider and other critical support services. If something happens to a company’s staff or systems, they have a safety net.
Small business owners should check their finances regularly. This is to ensure that they are on track to meet their goals and to identify any potential issues early on.
This includes:
Investing in technology can help small businesses prepare for unexpected events. For example, cloud-based software can help businesses store their data off-site. This ensures that it is safe in the event of a natural disaster or cyber-attack. Technology can also help businesses automate processes. Automation reduces the risk of errors and improves efficiency.
Small businesses should train their employees for emergencies. This helps ensure that everyone knows what to do in the event of an unexpected event.
This includes training for natural disasters, cyber-attacks, and other emergencies. Businesses should also have a plan for communicating with employees during an emergency. As well as ensure that everyone has access to the plan. Taking a look at our How Often Do You Need to Train Employees on Cybersecurity Awareness article might help you as well.
Small businesses should stay up to date on regulatory requirements. This helps ensure that they are compliant with all laws and regulations. This includes tax laws, labor laws, and industry-specific regulations. Non-compliance can result in fines, legal fees, and damage to your business's reputation.
In conclusion, small businesses face many risks. But by following these tips, they can prepare themselves for the unexpected.
Get started on a path to resilience and protect your business interests. We can help you prepare for the unexpected. Give us a call today to schedule a chat.
This Article has been Republished with Permission from The Technology Press.