Business email compromise attacks are on the rise. Here’s how you can stay ahead of the hackers.
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Despite years of claims that the “death of email” is fast approaching, the decades-old communication method continues to thrive in business. In particular, the business of hacking.
An email containing a link that looks legitimate but is actually malicious remains one of the most dangerous yet successful tricks in a cybercriminal’s handbook and has led to some of the largest hacks in recent years, including the 2022 breach of communications giant Twilio and last year’s hack of social media platform Reddit.
While these emails are sometimes easy to spot, be it thanks to bad spelling or an unusual email address, it is becoming increasingly difficult to identify a dodgy email from a legitimate one as hackers’ tactics become increasingly sophisticated.
Take business email compromise (or BEC), for example, a type of email-borne attack that targets organizations large and small with the aim of stealing money, critical information, or both. In this type of scam, hackers impersonate or compromise someone familiar to the victim, such as a co-worker, boss or business partner, to manipulate them into unknowingly disclosing sensitive information.
The risk this poses to businesses, particularly startups, can’t be overstated. Individuals in the U.S. lost close to $3 billion in BEC scams last year alone, according to the latest data from the FBI. And these attacks are showing no signs of slowing down.
While cybercriminals have become more advanced in their email-sending tactics, there are some simple red flags that you can — and should — look out for. These include an email sent outside of typical business hours, misspelled names, a mismatch between the sender’s email address and the reply-to address, unusual links and attachments, or an unwarranted sense of urgency.
The use of spear phishing — where hackers use personalized phishing emails to impersonate high-level executives within a company or outside vendors — means it can be near-impossible to tell whether a message has come from a trusted source. If an email seems unusual — or even if it doesn’t — contact the sender directly to confirm the request, rather than replying via any email or any phone number provided in the email.
Tech support scams are becoming increasingly common. In 2022, Okta customers were targeted by a highly sophisticated scam that saw attackers send employees text messages with links to phishing sites that imitated the look and feel of their employers’ Okta login pages. These login pages looked so much like the real deal that more than 10,000 people submitted their work credentials. Chances are, your IT department isn’t going to contact you via SMS, so if you receive a random text message out of the blue or an unexpected pop-up notification on your device, it’s important to check if it’s legitimate.
Cybercriminals have long used email as their weapon of choice. More recently, criminals rely on fraudulent phone calls to hack into organizations. A single phone call reportedly led to last year’s hack of hotel chain MGM Resorts, after hackers successfully deceived the company’s service desk into granting them access to an employee’s account. Always be skeptical of unexpected calls, even if they come from a legitimate-looking contact, and never share confidential information over the phone.
Multi-factor authentication — which typically requires a code, PIN, or fingerprint for logging in along with your regulator username and password — is by no means foolproof. However, by adding an extra layer of security beyond hack-prone passwords, it makes it far more difficult for cybercriminals to access your email accounts. Take one security step even further by rolling out passwordless technology, like hardware security keys and passkeys, which can prevent password and session token theft from info-stealing malware.
With any type of cyberattack, a criminal’s ultimate goal is to make money, and the success of BEC scams often hinges on manipulating a single employee into sending a wire transfer. Some financially motivated hackers pretend to be a vendor requesting payment for services performed for the company. To lessen the risk of falling victim to this type of email scam, roll out strict payment processes: Develop a protocol for payment approvals, require that employees confirm money transfers through a second communication medium, and tell your financial team to double-check every bank account detail that changes.
Ultimately, you can minimize the risk of falling for most BEC scams by simply ignoring the attempt and moving on. Not 100% sure that your boss actually wants you to go out and buy $500 worth of gift cards? Ignore it! Getting a call you weren’t expecting? Hang up the phone! But for the sake of your security team and helping your co-workers, don’t stay quiet. Report the attempt to your workplace or IT department so that they can be on higher alert.
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