In today's digital age, businesses are constantly at risk of falling victim to cyberattacks. One particularly dangerous threat is known as business email compromise (BEC). This type of attack involves a criminal gaining access to company email accounts and using them to deceive employees into making fraudulent transactions or giving away sensitive information.
But don't worry - there are steps you can take to protect your business from BEC and reduce the risk of financial loss. Let's dive into some best practices that can help prevent this type of cybercrime.
Understanding the Basics: What is Business Email Compromise?
Business email compromise is a form of cyberattack that relies on social engineering tactics to trick employees into taking actions that benefit the criminal. This can include wire transfers, electronic payments, or the release of sensitive data such as W-2 forms.
Criminals may gain access to a company's email system through compromised credentials or by spoofing a legitimate email address. Once they are in, they can use various techniques to deceive employees and convince them to carry out their fraudulent instructions.
Reducing the Risk: Best Practices for Avoiding Business Email Compromise
So how can you protect your business from falling victim to BEC? Here are some best practices to keep in mind:
Establish an approval process for funds transfers and require verification from a supervisor or next-level approver before any changes are made. This ensures that there is an extra layer of security and reduces the chances of unauthorized transactions.
Provide periodic anti-fraud training for employees, especially those who frequently travel and are authorized to request funds transfers. This can help them identify phishing and social engineering scams.
If a vendor or supplier requests changes to their account details, confirm the request through a direct call to a pre-established phone number. Don't use any contact information provided in the email as it could also be fraudulent.
Be suspicious of small changes in email addresses from vendors or suppliers, such as different domain extensions or slight misspellings. Always verify with the sender before making any changes or following instructions.
Establish an out-of-band verification process for financial transactions, such as calling and speaking with the person requesting a transfer using a pre-established phone number. This can help confirm their identity and avoid falling victim to impersonation scams.
Limit the number of employees who have authority to submit or approve wire transfers, and implement dual approvals for all financial transactions. The two parties responsible for approval should not be in a supervisor/subordinate relationship to ensure accountability and prevent fraud.
Implement two-factor authentication for remote access to company email systems. This adds an extra layer of security and makes it more difficult for criminals to gain unauthorized access.
Develop written procedures for handling sensitive financial transactions and regularly review and update them. This can help ensure consistency and prevent any confusion or misunderstandings.
Regularly Reviewing and Updating Security Measures
Finally, it's crucial to regularly review and update your company's security measures. Cyber threats are constantly evolving, so it's essential to stay up-to-date with the latest methods used by criminals. This includes reviewing and updating email filters, firewalls, antivirus software, and implementing new security protocols as needed. It's also important to conduct regular risk assessments to identify potential vulnerabilities and address them promptly.
By following these best practices, you can significantly reduce the risk of falling victim to business email compromise attacks. Remember, prevention is always better than cure, so stay informed, stay alert, and keep your business safe from cyber threats.