Business email compromise (BEC) is big business. For several years, BEC attacks have been the leading cause of losses to cybercrime according to the Federal Bureau of Investigation (FBI). Over the past 5 years, BEC incidents have resulted in more than $43 billion in losses globally, with $83,883,493 in reported losses to BEC scams in 2022.
BEC, also known as email account compromise (EAC), is a sophisticated scamming technique that targets employees and the businesses they work for. These attacks can be conducted to obtain sensitive information such as W-2 forms, which can be used for large-scale tax fraud, but most commonly attempt fraudulent payments, where an employee is tricked into changing payment details for an upcoming payment.
BEC attacks usually start with phishing emails. These can be general phishing emails to gain access to any employee email account, which is then used to send further phishing emails within a company and to vendors to get the high-value email credentials that the attackers seek. Alternatively, spear phishing emails are crafted on well-researched targets, such as employees in the finance department of a company who are likely to have responsibility for making wire transfers or employees at vendors who handle customer accounts. Social engineering techniques are used in the phishing emails to trick the targets into disclosing their credentials.
When access is gained to a targeted email account, the attacker can learn a great deal about the company and can identify vendors/clients, view invoices, and learn about upcoming payments. The style of the target’s emails can be identified, so emails can be carefully crafted using a similar writing style and language to prevent the scam from being detected. A request is then made via email to change banking details for an upcoming payment to attacker-controlled accounts. These accounts are commonly created at overseas banks in Thailand, Hong Kong, China, Mexico, and Singapore.
When the payment is made, funds are rapidly transferred to other accounts or are withdrawn, often before the fraudulent payment is detected. The payments are often large – tens of thousands, hundreds of thousands, or millions of dollars. One common tactic used in BEC attacks is to impersonate construction companies. Research is conducted online to identify a company’s current work projects, and company email accounts are targeted. When access to accounts is gained, the scammers identify contact information, bid information, and project costs.
Construction projects often involve regular payments during construction, so the attackers change bank account information for an upcoming sizable payment. The client of the construction company expects to make a payment, so a simple change of bank account information is unlikely to arouse suspicion, especially since the request comes from a genuine company domain and email account with the correct logos and footers. Oftentimes, the victim has been communicating with the construction company through the same email account. Email communications between the victim and the scammer can span several emails, with the attackers taking their time before making the request. Reports of losses to the FBI between 2018 and 2020 show the fraudulent payments range from around $10,000 to $4 million.
Defending against BEC attacks requires a combination of measures that aim to block the initial account compromise, detect any compromises, identify suspicious requests, and monitor accounts for any irregularities. Advanced phishing defenses are required to block the initial phishing attacks where account credentials are obtained. SpamTitan performs a barrage of tests to identify and block phishing and spear phishing emails. These attacks can involve spoofing rather than email account compromise, and SpamTitan solutions can detect and block emails from fake accounts as well as malware, which is often used to gain initial access to networks before pivoting to email accounts.
SpamTitan also incorporates machine-learning detection mechanisms to identify deviations from the standard emails that a business usually receives, which can identify and block the initial phishing emails and fraudulent emails sent from compromised accounts, since checks are performed on inbound and outbound emails. 2-factor or multi-factor authentication should also be enabled for all company email accounts.
2-factor authentication processes should also be established for any changes to account information. Any request to change account information or change upcoming payments should be verified using a second authentication mechanism such as a telephone call to a verified contact number. Staff should also be provided with security awareness training to alert them to phishing and BEC attacks. SafeTitan security awareness training has extensive training content on phishing and BEC attacks and allows training courses to be easily developed and automated for the specific employees who are likely to be targeted in these scams to provide them with advanced training on how to detect BEC attacks.
For more information on improving email security and security awareness training, contact TitanHQ. TitanHQ solutions are available on a free trial, with full access to customer support for the duration of the trial to help you get the most out of the products.