How to protect your business from email compromise – and be prepared if protection falls short
Business Email Compromise (BEC) scams pose a growing threat to organizations of all sizes, and they are only increasing in sophistication and frequency. The attacks, in which criminals frequently leverage social engineering to impersonate company insiders, C-suite executives or trusted vendors to request urgent payments, can financially devastate organizations.
It can be easy to fall victim to a BEC attack, especially for companies with limited resources and leaner teams handling payments. Many rely on a handful of people to manage tasks, who may feel tremendous pressure to respond quickly to seemingly urgent requests – especially if the request is from someone high up in the organization. It’s a practice that can lead to costly mistakes.
Preventing BEC scams
Implementing the right technology is critical in preventing BEC scams. Solutions like fraud detection tools, vendor portals and payroll management systems can help safeguard against unauthorized payments.
Many businesses are now requiring employees to update payment information through secure portals rather than relying on email communications, which reduces the chance of falling victim to an attack.
While AI can play a role in detecting fraudulent activities, BEC scammers are increasingly also using AI to craft more convincing emails that make it harder to identify fraud. This further emphasizes the importance of multi-layered defenses, such as dual approval processes for payments and consistent employee education and training on how to spot potential threats.
Keys to recovering from a BEC attack
For organizations or individuals who may have inadvertently sent money to a fraudster, time is of the essence. If you suspect fraudulent activity, immediately notify your banking partner. Quick action may stop unauthorized transactions before the funds transfer. We tell our clients, don’t be embarrassed. The sooner we know, the faster we can act.
In cases where the victim cannot recover funds, it’s essential to have insurance policies in place to mitigate the financial loss. Many businesses overlook the importance of cybersecurity and fraud insurance, but as BEC scams increase, having this protection is key to reducing the damage should a fraud loss occur.
Preventing BEC requires a combination of technology, training and internal processes. Here are four simple and immediate best practices to implement:
- Test and train employees: Regularly test employees with fake phishing emails to ensure they can recognize fraudulent activity. Those who fail should undergo additional training.
- Provide ongoing education: Consistently provide education to ensure employees are aware of the latest BEC tactics, such as supply chain attacks and multi-factor authentication (MFA) bypass. Also make sure employees understand internal controls around safeguarding potential points of vulnerability in processes related to sensitive data and money movement.
- Implement dual controls: Requiring dual approvals to verify and approve payments and changes to vendor information ensures no single employee can authorize a payment without verification.
- Avoid email for financial requests: Use secure portals to update payment information rather than relying on email, which is prone to phishing attacks.
The role of a banking partner in preventing BEC
A strong relationship with your bank can serve as a critical line of defense in preventing and mitigating BEC attacks. Most banks offer fraud mitigation solutions such as positive pay, which verifies checks and ACH payments before they are processed. Banking partners can also provide education and real-time updates on emerging fraud trends to help businesses stay ahead of potential threats.
At the heart of the prevention strategy is collaboration between businesses and their banking partners. Banks can assist with monitoring suspicious activity, verifying requests for changes to vendor or employee payment information, and working with law enforcement in case of fraud.
By adopting best practices, a sound risk management strategy, and by working closely with your banking partner, you can protect your organization from falling victim to a BEC scam and help ensure your financial operations remain secure.
For more information on how Synovus can help your organization mitigate BEC fraud, complete a short form and a Synovus Consultant will contact you.
