Understanding business email compromise (BEC): A guide to help protect your organization

Cybercriminals have long exploited our reliance on email. Of the many types of cyberattacks aimed at email inboxes, organizations have been increasingly focused on business email compromise (BEC) – and for a good reason. BEC has rapidly become one of the most financially damaging and disruptive cybercrimes affecting businesses today.

BEC scams rely on impersonation, social engineering, and urgency to trick employees into sending money or sensitive information. What makes this threat so effective is BEC exploits human trust (not only technology), and these attacks can be difficult to spot and fast‑moving once they begin.

Knowing the warning signs and following prevention best practices can help keep your organization, your employees, and your customers safe.

What is BEC and how does it work?

BEC is a targeted form of phishing in which cybercriminals impersonate a trusted individual, such as an executive, vendor, or colleague, to request payments, credentials, or confidential data. A variety of techniques are used to make these messages as convincing as possible. Attackers often:

• Spoof or compromise legitimate email accounts.
• Mimic an organization’s tone, formatting, and communication style.
• Insert themselves into real conversations or invoice processes.
• Pressure recipients to act quickly or discreetly.

The goal might be a fraudulent wire transfer, an altered invoice, or a request to send funds to a new account. The fraudulent payments might be transferred several times between banks and accounts to quickly disperse funds before being caught. In some cases, fraudsters seek confidential information they can use in later scams.

BEC continues to escalate each year and has claimed more than $2 billion in annual losses in recent years, according to ongoing reporting from FBI’s Internet Crime Complaint Center (IC3).

Watch out for these BEC red flags

Because AI tools now help attackers create near‑perfect messages, not every BEC attempt will include obvious errors. It can also be difficult to detect because these messages could originate from a legitimate, trusted email account that has been compromised.

Trust your instincts. If something feels unusual, stop and verify using another communication channel, such as a known phone number. Look closer if you notice:

• Changes to payment instructions, including new account numbers, updated routing numbers, or requests to send funds to an unfamiliar account. Always verify through a confirmed phone number before executing the change.
• Invoices or payment amounts that don’t match prior agreements, lack clear justification, or arrive out of sequence.
• Pressure to act quickly or keep the request confidential.
• New or modified email addresses, altered “reply‑to” fields, or removal of other recipients in an existing email thread.
• Tone, language, or grammar inconsistencies that don’t match the sender’s usual style.
• Refusal to speak by phone or confirm details verbally when you request it.
• Suspicious audio messages requesting payment changes that may be AI‑enhanced impersonation

BEC prevention best practices

In addition to watching out for those potential BEC indicators above – and training employees to be aware of them – these six best practices can help you protect yourself and your business from becoming victims of fraud.

1. Follow established business protocols

• Use standard, documented procedures for approving and dispersing funds.
• Never rely on contact information provided in an unexpected email.
• Confirm payment changes or urgent requests through a known phone number or other trusted channel.

2. Monitor payment methods and changes

• Use dual‑control or multi‑step verification for significant transactions.
• Reduce reliance on paper checks; use secure electronic payment methods when possible.
• Safeguard remotely deposited items and dispose of them properly once cleared.

3. Treat email and messages with healthy skepticism

• Delete unsolicited emails from unknown senders.
• Avoid using “reply” on suspicious messages; instead start a new email using the address on file.
• Use company‑owned domains for employee email accounts.
• Slow down if something feels unusual and ask a colleague for a second opinion.

4. Recognize and report phishing attempts

• Be cautious of secrecy, pressure, or sudden changes in business practices.
• Use digital signatures or secure communication tools for sensitive transactions.
• Limit how much personal and organizational detail is shared publicly.
• Report suspicious emails using your organization’s IT or cybersecurity process.

5. Strengthen your security controls

• Use multifactor authentication (MFA) on email and remote access systems.
• Require strong, unique passwords and consider a password manager.
• Keep systems, software, and devices updated with the latest patches.

6. Act quickly if something goes wrong

• Report promptly to the appropriate person or team in your organization and to your financial institution.
• Rapid response can make a significant difference in recovering or blocking funds.

Stay vigilant and build a strong security culture

Cybercriminals continually adapt their methods, and BEC attacks remain a persistent threat for organizations of all sizes. Losses from cyberattacks are not always recovered, so strong processes, awareness, and preventative controls can greatly reduce your risk.