With our lives so intertwined with digital communication these days, the threat of email fraud is something we all need to take seriously. Recently, Teresa W. shared a scary experience that underscores the dangers of business email compromise (BEC).
“I almost lost many thousands of dollars through an internet fraud scam. I got a call from our personal banker who said she saw nearly all the money in our business account being withdrawn. She said she got an email from me along with the money wiring directions. I told her I didn’t send that and she said my email came from me directly to her. I said to stop everything and I will get to the bottom of it.
“Apparently the thieves got hold of a wiring instruction paper from my email, which they hacked into. They created a rule in Outlook to bypass me if anything came from them and go straight to the banker. They changed the wiring instructions to go into their account but thank goodness our banker alerted me so I could get to the bottom of it. Too close for comfort!”
This incident highlights a sophisticated scam where cybercriminals gain access to legitimate email accounts and use them to deceive others into transferring funds. Teresa’s quick action, combined with her banker’s vigilance, prevented a significant financial loss, but it serves as a wake-up call for many businesses.
I’M GIVING AWAY THE LATEST & GREATEST AIRPODS PRO 2
Enter the giveaway by signing up for my free newsletter.
“You’ve been hacked!” written on laptop home screen (Kurt “CyberGuy” Knutsson)
What is business email compromise (BEC)?
Business email compromise (BEC) is a form of cybercrime that targets companies engaged in wire transfer payments and other financial transactions. The FBI reports that BEC scams have caused billions in losses globally. These scams exploit human psychology rather than technical vulnerabilities, making them particularly insidious.
A hacker at work (Kurt “CyberGuy” Knutsson)
HERE’S WHAT RUTHLESS HACKERS STOLE FROM 110 MILLION AT&T CUSTOMERS
How the scam works
Email hacking: Scammers often gain access to email accounts through phishing attacks, where they trick users into revealing their login credentials or by deploying malware that captures sensitive information.
Email rule creation: Once inside the account, scammers can create rules in email clients like Outlook that redirect or hide specific emails. This means that any communication related to fraudulent activities may go unnoticed by the victim.
Impersonation: The scammer impersonates the victim and sends emails to contacts, such as banks or vendors, requesting urgent wire transfers or sensitive information.
Execution: The scammer provides convincing details and urgency in their requests, making it appear as though the email is genuinely from the victim. They may use specific language or references only known to the victim and their contacts.
A hacker at work (Kurt “CyberGuy” Knutsson)
BEWARE OF ENCRYPTED PDFs AS THE LATEST TRICK TO DELIVER MALWARE TO YOU
Real-life implications
The consequences of BEC scams can be devastating for businesses. In addition to direct financial losses, companies may face reputational damage, loss of customer trust and potential legal ramifications. For small businesses like Teresa’s, which may not have extensive cybersecurity measures in place, the impact can be particularly severe.
Illustration of security on a computer (Kurt “CyberGuy” Knutsson)
WHAT TO DO IF YOUR BANK ACCOUNT IS HACKED
Proactive steps to avoid being a victim of BEC scams
To combat BEC and similar scams, businesses must adopt a proactive approach to cybersecurity.
1) Have strong antivirus software: Use reputable, up-to-date, strong antivirus software to check your system. The best way to safeguard yourself from malicious links that install malware, potentially accessing your private information, is to have antivirus software installed on all your devices. This protection can also alert you to phishing emails and ransomware scams, keeping your personal information and digital assets safe. Get my picks for the best 2025 antivirus protection winners for your Windows, Mac, Android and iOS devices.
2) Use strong passwords: Ensure passwords are complex (a mix of letters, numbers and symbols) and unique for each account. Make sure to create strong, unique passwords. Consider using a password manager to generate and store complex passwords.
3) Enable two-factor authentication: Where possible, enable multifactor authentication. This adds an extra layer of security to your accounts.
4) Monitor your accounts: Keep an eye on your financial accounts, email accounts and social media for any unusual activity. If you think scammers have stolen your identity, consider identity theft protection here.
Identity theft companies can monitor personal information like your Social Security number, phone number and email address and alert you if it is being sold on the dark web or being used to open an account. They can also assist you in freezing your bank and credit card accounts to prevent further unauthorized use by criminals.Â
One of the best parts of using some services is that they might include identity theft insurance of up to $1 million to cover losses and legal fees and a white-glove fraud resolution team where a U.S.-based case manager helps you recover any losses. See my tips and best picks on how to protect yourself from identity theft.
5) Invest in personal data removal services: Using a data removal service can be an effective additional step to protect your personal information after a potential BEC scam. These services locate and remove your information from various online platforms, databases and data brokers. By eliminating unnecessary or outdated information, data removal services minimize your online presence, making it harder for scammers to find and exploit your data.
While no service promises to remove all your data from the internet, having a removal service is great if you want to constantly monitor and automate the process of removing your information from hundreds of sites continuously over a longer period of time. Check out my top picks for data removal services here.
6) Regularly update security questions: Change security questions and answers periodically to enhance protection.
7) Regularly review email rules: Check for unauthorized changes in email settings that could indicate compromise.
8) Disable auto-forwarding: Unless absolutely necessary, turn off auto-forwarding features to prevent sensitive information from being sent elsewhere without your knowledge.
9) Verify requests: Always verify any financial requests through a secondary communication method (e.g., a phone call) before proceeding with transactions.
10) Limit access: Restrict access to financial information and transactions only to those who need it within your organization.
11) Contact professionals: If you’re unsure about any steps or if the situation seems severe, consider reaching out to a professional IT service.
12) Report the incident: Report the scam to your local authorities and the Federal Trade Commission in the U.S.
13) Create alias email addresses: My top recommendation to avoid being inundated with spam emails is to use an alias email address. An alias email address is an additional email address that can be used to receive emails in the same mailbox as the primary email address. It acts as a forwarding address, directing emails to the primary email address.
In addition to creating throwaway email accounts for online sign-ups and other circumstances where you would not want to disclose your primary email address, alias email addresses are helpful for handling and organizing incoming communications.
Sometimes, it’s best to create various email aliases so that you don’t have to worry about getting tons of spam mail and having your email eventually stolen in a data breach. An alias email address is a great way for you to stop receiving constant spam mail by simply deleting the email alias address. See my review of the best secure and private email services here.
SUBSCRIBE TO KURT’S YOUTUBE CHANNEL FOR QUICK VIDEO TIPS ON HOW TO WORK ALL OF YOUR TECH DEVICES
Kurt’s key takeaways
The story shared by Teresa W. serves as a crucial reminder of the vulnerabilities inherent in our digital communications. The rise of BEC scams not only threatens financial security but also erodes trust in electronic transactions. By implementing robust security measures and maintaining vigilance at all levels of an organization, individuals and businesses can protect themselves from these insidious attacks.
What additional measures do you think businesses and government agencies should implement to effectively combat the rising threat of email scams? Let us know by writing us at Cyberguy.com/Contact.
For more of my tech tips and security alerts, subscribe to my free CyberGuy Report Newsletter by heading to Cyberguy.com/Newsletter.
Ask Kurt a question or let us know what stories you’d like us to cover.
Follow Kurt on his social channels:
Answers to the most asked CyberGuy questions:
New from Kurt:
Copyright 2024 CyberGuy.com. All rights reserved.
