What is business email compromise (BEC)?

BEC scams might sound like something out of a spy thriller, but the techniques behind them are painfully real—and alarmingly effective. Here’s how these cybercriminals pull it off:

Techniques employed by attackers

BEC scammers don’t just rely on luck; they’re skilled manipulators of both technology and people. They might:
 

• Spoof email addresses to make their messages appear like they’re coming from someone you trust.
• Use spear-phishing tactics that target specific employees with tailored messages that feel eerily personal.
• Deploy malware that gives them access to sensitive conversations and information they can weaponize. 

These aren’t your typical phishing scams. They’re crafted with precision to bypass suspicion.

Why BEC attacks are hard to detect

What makes BEC attacks so insidious is their subtlety. Scammers bank on the fact that humans are naturally trusting and that many businesses rely on predictable processes. They exploit these tendencies by mimicking everyday requests—like payment approvals or invoice updates—so well that even experienced employees can get duped.

Typical content found in BEC emails

BEC emails often carry telltale signs if you know what to look for. Common elements include:
 

• Requests for urgent wire transfers or gift card purchases.
• Messages like, “Can you handle this privately? I’m in a meeting.”
• Slightly off grammar or email addresses that are just one character away from the real thing. 

These messages are designed to push you into action before you pause to question them. Recognizing these red flags is the first step to stopping them in their tracks.

BEC scammers are equal-opportunity schemers—they’ll go after anyone with access to money or sensitive information. But certain organizations and roles tend to land in their crosshairs more often.

Common targets include:
 

• Businesses of all sizes, from large corporations to small businesses.
• Government agencies that manage budgets or contracts.
• Nonprofits, especially those handling large donations or grants.
• Schools and universities, where administrative staff process tuition payments and vendor invoices. 

Essentially, if your organization moves money or manages sensitive operations, you’re on the radar.

Specific roles scammers target

Not all employees are equally targeted in BEC scams. Attackers zero in on roles with financial authority or high-level access. Key targets include:
 

• Finance employees, like controllers and accounts payable staff who have banking details, payment methods, and account numbers.
• Executives, particularly CEOs and CFOs, since their requests carry weight and urgency and details about them are often publicly available.
• HR professionals with employee records like social security numbers, tax statements, contact info, and schedules.
• IT administrators, whose access to systems could help attackers dig deeper into the organization.
• New or entry-level employees, who will have a harder time verifying an email’s legitimacy. 

Scammers know these roles are gatekeepers, so impersonating them—or tricking them directly—opens the doors to your organization’s assets.

BEC scams don’t just leave a mark—they leave a crater. The financial, operational, and reputational fallout can be staggering. Let’s break it down:

Financial implications of BEC attacks

The numbers don’t lie—BEC attacks are incredibly costly. The FBI reports that BEC scams have resulted in over $50 billion in losses since 2013. But it’s not just about the money stolen directly. Add in the costs of:
 

• Recovering from data breaches, since attackers often gain access to sensitive information during the scam.
• Legal and regulatory fines, especially if customer or employee data is compromised.
• Operational disruptions, as your team scrambles to respond to the crisis. 

As BEC schemes evolve, so do threat protection strategies. Learn more about Microsoft’s email threat protection solutions.

Examples of Business email compromise

BEC isn’t just theoretical—it’s happening to organizations every day. Here are some examples of what BEC might look like in real life:

Example #1: Pay this urgent bill

Say you work in your company’s finance department. You get an email from the CFO with an urgent request about an overdue bill—but it’s not actually from the CFO. Or the scammer pretends to be your company’s internet provider and emails you a convincing-looking invoice.

Example #2: What’s your phone number?

A company executive emails you, “I need your help with a quick task. Send me your phone number and I’ll text you.” Texting feels safer and more personal than email, so the scammer hopes you’ll text them payment info or other sensitive information. This is called “smishing,” or phishing via SMS (text) message.

Example #3: Top secret acquisition

Your boss asks for a down payment to acquire one of your competitors. “Keep this just between us,” the email says, discouraging you from verifying the request. Since M&A details are often kept secret until everything is final, this scam might not seem suspicious at first.

BEC vs. traditional phishing attacks

While both BEC and phishing are email-based scams, their tactics and impacts are quite different:

• BEC—Highly targeted, personalized attacks. Scammers do their homework, mimicking specific people and processes to gain trust. These attacks focus on high-value assets, like wire transfers or sensitive data.
• Traditional phishing—Broad, shotgun-style attacks. Think fake login pages, “you’ve won a prize” emails, or generic scare tactics. They’re easier to spot and often aim to steal passwords or small amounts of money.

The stakes with BEC are much higher, making it critical for organizations to prioritize defenses against these advanced scams.

Stopping a BEC attack in its tracks requires a combination of proactive measures, technological defenses, and a solid plan for responding when things go wrong. Here’s how to keep your organization safe:

Organizational measures and employee training

Your first line of defense is your people, and awareness turns potential weak links into cybersecurity allies. Make sure everyone knows how to spot:
 

• Phishing links.
• A domain and email address mismatch.
• Suspiciously urgent requests.

You might even simulate a BEC scam, so people recognize one when it happens.

Secure email gateways and technical solutions

Technology can bolster your defenses. Tools designed to detect and block malicious emails include:

• Secure email gateways (SEGs)—These act as a filter, analyzing incoming messages for signs of fraud or spoofing.
• Multifactor authentication (MFA)—Even if scammers get access to credentials, MFA adds an extra layer of security.
• Domain-based message authentication, reporting, and conformance (DMARC)—This protocol helps prevent attackers from spoofing your email domain. 

Implementing these tools can significantly reduce the risk of a successful BEC attack.

Responding to a suspected BEC attack

If you suspect a BEC attack, speed is critical. Here’s what to do:
 

1. Freeze the transaction—If a wire transfer has been initiated, contact your bank immediately to halt or reverse the payment.
2. Alert your IT team—They can investigate the email’s source and block further communications from the attacker.
3. Review and update processes—Look for gaps in your existing security protocols and strengthen them to prevent future incidents. 

Having a response plan in place ensures you’re ready to act when every second counts.

AI and email security

The rise of AI for cybersecurity and machine learning is a game changer in email security. These technologies:

• Analyze email behavior patterns to detect anomalies, like a sudden request for a wire transfer.
• Identify subtle signs of spoofing, such as slight variations in email addresses.
• Continuously adapt to new threats, making it harder for scammers to stay ahead of detection tools. 

By integrating AI-powered, unified SecOps solutions into your security stack, you gain an edge against increasingly sophisticated attackers.

When it comes to preventing BEC attacks, staying one step ahead is essential. Cybercriminals are constantly evolving their tactics, so your security measures need to be as dynamic as the threats themselves. Here’s how to keep your defenses strong and up to date:

Continuous monitoring and updates

BEC attacks are not a “set it and forget it” threat. Scammers are constantly refining their methods to bypass existing security tools, so you need to stay vigilant with:

• Regular security audits to identify weaknesses in your defenses.
• Frequent software updates to patch vulnerabilities and ensure you're protected against new exploits.
• Ongoing threat monitoring to detect unusual activity in real-time, from suspicious email patterns to unauthorized access attempts. 

Only by continuously evolving your security posture can you keep pace with these shifting threats.

Staying informed about the latest threats

Staying informed on the latest in cyber threat intelligence can help you identify potential threats before they become serious problems. Stay ahead by:

• Subscribing to cybersecurity blogs and newsletters for regular updates on new BEC techniques.
• Participating in industry-specific security forums to share information and learn from other organizations’ experiences.
• Engaging with cybersecurity experts to understand threat hunting and how they might impact your business. 

The more you know about how scammers are adapting to threat detection and response, the better prepared you’ll be to stop them in their tracks.

For organizations using Microsoft Office 365, Microsoft Defender for Office 365 offers a robust solution to help detect and mitigate BEC attacks. It provides:
 

• Advanced phishing protection, blocking suspicious emails and alerting users about potential threats.
• Real-time monitoring and reporting with endpoint detection and response (EDR) to help you spot signs of compromise as they happen.
• Automated incident response actions, like quarantining malicious emails and blocking known threat actors.

By integrating Microsoft Defender for Office 365 into your security stack, you gain a powerful ally in the fight against BEC—one that’s continuously updated to keep pace with evolving threats.

Additionally, the automatic attack disruption feature in Microsoft Defender XDR can stop in-progress attacks like BEC and prevent further lateral movement.