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Posted By:  Ecommerce Exchange on 04/18/2018 in Security

How to Prevent Massive Financial Losses From Business Email Compromise

How to Prevent Massive Financial Losses From Business Email Compromise

Imagine that an email from a high-ranking executive or boss comes across an employee’s inbox. This could be an opportunity to make a move and deliver results that advance their career, or it could be the chance to explain a massive mistake, so the person truly responsible is held accountable. An urgent email from the boss could be a multitude of things, but most employees would never think about the possibility that it’s a crucial step in an ingenious scam that could cost the company millions of dollars.

Business Email Compromise (BEC) is a type of scam targeting companies who conduct wire transfers and have suppliers abroad.

Through deception or hacking methods, criminals gain access to corporate email accounts. Posing as high-ranking company executives, these cybercriminals send out emails trying to authorize the transfer of money for business purposes. However, these criminals are in reality tricking employees into stealing business funds for them, and the losses can be devastating. 

From October 2013 to May 2016, the FBI has estimated more than $960 million was lost due to BEC scams. These BEC scams can strike any size business in any sector at any time. All it takes is a single gaffe by someone in the company to provide the opportunity these fraudsters need.

Although the threat of BEC may come as dire news for your business, there are some simple procedures management and IT professionals can take to avoid being victimized by these scams. 

For example, an email requesting the transfer of funds should always be accompanied by another form of verification — whether that’s a security question, PIN, or verified text message. There should also be some form of multi-factor or two-factor authentication required to authorize the transfer of funds. 

Providing regular training for all financial professionals in the company is another important weapon in the fight against these types of cybercrimes. Awareness can ensure that employees are always vigilant against common BEC tricks and tactics.

Check out these Simple Ways to Prevent Multimillion-Dollar Losses From BEC, courtesy of Halock Security Labs:

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