This guide will detail how to prevent and respond to BEC and invoice fraud, as well as discuss effective measures to stop this type of infiltration. Reach out to Data First Solutions with questions regarding how to better safeguard your business against cyberattacks.
Business Email Compromise (BEC)
This is a form of infiltration that spoofs legitimate business email accounts. The goal of this cyberattack is to deceive the recipient into revealing information or transferring funds. While large corporations have their fair share of attacks, cyberthieves have now begun to target small businesses. They are viewed as easier prey because of a perceived weakness regarding their cybersecurity practices.
The most common method of BEC occurs through invoice fraud. The cybercriminals send an email from a vendor or supplier that the businesses operate with. This fake invoice requests payment via a link that deposits funds into a fraudulent bank account. The emails are quite sophisticated, using company logos and contact names to appear legitimate. They even use forged signatures and portions of previous communications to make their attempt appear real.
Why Small Businesses Are at Risk
There are several reasons small businesses have seen an increase in risk to these types of efforts.
- Lack of formal security protocols
- Limited staff training
- Smaller IT budgets
- High trust in vendor relationships
With minimal effort, cyber criminals can cause devastation to any business that falls victim to their scheme. It could mean significant financial loss and operational disruption.
Warning Signs
One way to protect your business is to remain vigilant when receiving such emails. Having the ability to spot odd-looking or suspicious emails is critical. Here are some of the red flags associated with this type of criminal endeavor:
- Urgent or unexpected payment requests
- Emails requesting banking information
- Subtle email domain alterations (e.g., “@supplier.com” changed to “@supp1ier.com”)
- Grammar or spelling errors
- Emails sent outside of business hours
Preventative Measures
Combating BEC requires an orchestrated approach. One that employs technology, policy, and education. For the best results, small businesses should consider the following:
Security Protocols
Implementing email authentication protocols prevents email spoofing. This could include:
- Sender Policy Framework
- DomainKeys Identified Mail
- Domain-based Message Authentication
Multi-Factor Authentication (MFA)
With MFA in place, even if login credentials are stolen, it is infinitely more difficult to access systems.
Verification Processes
It is important to establish internal policies for verifying payment requests.
- Require dual approval for large or unusual payments.
- Keep a list of verified vendors and banking details.
Train Employees
As with many company policies, they are only as effective as the people using them. Cybersecurity awareness is critical. They should become adept at:
- Identifying phishing attempts
- Reporting suspicious emails
- Avoiding clicking on unknown links or attachments
Limit Access
Security should be tightened so that only specific authorized personnel can make payments or approve transactions. This helps to limit your business’s exposure to this type of threat.
Incident Response
Regardless of how complex your cybersecurity framework is, the possibility of infiltration still exists. If you believe your business has been infiltrated by a BEC scam, do the following:
- Contact your financial institution immediately.
- Report the incident to local law enforcement.
- Notify affected vendors or clients.
- Conduct an internal investigation.
- Engage cybersecurity professionals.
Acting quickly can make the difference between a recoverable mistake and a lasting financial blow. It is vital that employees are notified when such a scam has occurred so they can be more vigilant regarding other email requests.
External Support
Small businesses can use third-party tools and services that help them improve their email security and provide secure invoice processing. Cyber liability insurance can also help offer protection. At Data First Solutions, we can help your business assess your cybersecurity and protect yourself from future BEC attempts.
Threat Preparedness
Every business that operates on a computer network faces cyber threats on a daily basis. To ensure business continuity, it is vital to protect your business from BEC threats. Business Email Compromise is a serious problem for small businesses that may lack adequate defenses.
Businesses that prioritize cybersecurity are the ones that not only protect their digital landscape but also their operations. With financial loss and reputational impact on the line, it’s never been more important than now to improve your cybersecurity. Why not reach out to Data First Solutions to find out how we can help?
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