Understanding Business Email Compromise (BEC)
Business Email Compromise (BEC) is a sophisticated form of cybercrime that targets organizations by exploiting email systems. Cyber criminals use social engineering tactics to deceive employees into transferring money or divulging sensitive information. BEC attacks can have devastating financial and reputational impacts on businesses.
How BEC Attacks Work
BEC attacks typically involve impersonation. Attackers may pose as a CEO, business partner, or vendor to trick recipients into taking actions that benefit the attacker. Common tactics include:
BEC attacks have caused significant financial losses globally. In 2021 alone, the FBI reported losses of 2.4 billion in the US due to DEC attacks. These attacks are expected to rise as remote work becomes more common, making it crucial from organizations to strengthen their defenses.
The Ubiquiti Networks Attack
In August 2015, Ubiquiti Networks Inc., a San Jose-based manufacturer of high-performance networking technology, fell victim to a devastating BEC attack. The attackers impersonated employees of a third-party company and targeted Ubiquiti's finance department. The attack led to a loss of $46.7 million.
How the Attack Happened:
This example underscores the importance of having robust cybersecurity measures and response plans in place to mitigate the impact of BEC attacks.
Additional Tips for BEC Prevention
In addition to the primary defense strategies, there are several other crucial measures that organizations can implement to further protect themselves against Business Email Compromise (BEC) attacks. This section provides practical tips on verifying requests, monitoring financial transactions, conducting regular audits, developing an incident response plan, and staying informed about the latest BEC tactics. These additional steps can significantly enhance an organization's overall security posture and reduce the risk of falling victim to BEC.
Business Email Compromise (BEC) is a sophisticated form of cybercrime that targets organizations by exploiting email systems. Cyber criminals use social engineering tactics to deceive employees into transferring money or divulging sensitive information. BEC attacks can have devastating financial and reputational impacts on businesses.
How BEC Attacks Work
BEC attacks typically involve impersonation. Attackers may pose as a CEO, business partner, or vendor to trick recipients into taking actions that benefit the attacker. Common tactics include:
- CEO Fraud: Impersonating a high-ranking executive to request urgent wire transfers.
- Invoice Fraud: Sending fake invoices that appear to be from legitimate suppliers.
- Account Compromise: Hacking an employee's email account to request payments to fraudulent accounts.
- Attorney Impersonation: Pretending to be a lawyer handling sensitive matters to pressure employees into making quick decisions.
- Implement DMARC: Domain-base Message Authentication, Reporting & Conformance (DMARC) helps organization gain visibility into email activities and prevent unauthorized use of their email domains. By using DMARC, businesses can identify and block malicious email that attempt to spoof their domains.
- Flag External Email: Mark emails coming from outside the organization to alert employees. This simple step can help employees recognize potentially suspicious emails.
- Employee Training: Educate employees about DEC and phishing attacks. Conduct regular training sessions and simulations to help them identify red flags and avoid failing victims to scams.
- Multi-Factor Authentications (MFA): Enforce MFA to add an extra layer of security. Even if attackers obtain login credentials, MFA can prevent them from accessing accounts.
- Strong Password Policies: Encourage the use of strong, unique passwords and consider using a password manager to maintain security.
BEC attacks have caused significant financial losses globally. In 2021 alone, the FBI reported losses of 2.4 billion in the US due to DEC attacks. These attacks are expected to rise as remote work becomes more common, making it crucial from organizations to strengthen their defenses.
The Ubiquiti Networks Attack
In August 2015, Ubiquiti Networks Inc., a San Jose-based manufacturer of high-performance networking technology, fell victim to a devastating BEC attack. The attackers impersonated employees of a third-party company and targeted Ubiquiti's finance department. The attack led to a loss of $46.7 million.
How the Attack Happened:
- Impersonation: The attackers used domain impersonation and email spoofing techniques to pose as legitimate employees of a third-party vendor.
- Deception: They sent email to Ubiquiti's finance department, requesting urgent wire transfers to fraudulent accounts.
- Execution: The finance department, believing the requests were legitimate, transferred the funds to the attackers' accounts.
- Detection: The fraud was detected when the finance department noticed discrepancies in the vendor's account details.
- Reporting: Ubiquiti promptly reported the incident to the FBI and other relevant authorities.
- Investigation: A thorough investigation was conducted, involving both internal and external cybersecurity experts.
- Recovery: While a significant portion of the funds was lost, Ubiquiti was able to recover some of the money through swift action and cooperation with law enforcement agencies.
- Verification Processes: Ubiquiti implemented stricter verification processes for financial transactions, including multi-factor authentications and secondary approvals.
- Employees Training: The company enhanced its employee training programs to raise awareness about BEC and other cyber incidents.
This example underscores the importance of having robust cybersecurity measures and response plans in place to mitigate the impact of BEC attacks.
Additional Tips for BEC Prevention
In addition to the primary defense strategies, there are several other crucial measures that organizations can implement to further protect themselves against Business Email Compromise (BEC) attacks. This section provides practical tips on verifying requests, monitoring financial transactions, conducting regular audits, developing an incident response plan, and staying informed about the latest BEC tactics. These additional steps can significantly enhance an organization's overall security posture and reduce the risk of falling victim to BEC.
- Verify Requests: Always verify any request for a financial transaction or sensitive information through a secondary communication channel, such as a phone call to the requester.
- Monitor Financial Transactions: Implement monitoring systems to flag unusual or large transactions for further review before they are processed.
- Regular Audits: Conduct regular audit of email security protocols and financial processes to identify and address potential vulnerabilities.
- Incident Response Plan: Develop and maintain an incident response plan specifically for BEC attacks. This plan should include steps for containment, investigation, and recovery.
- Stay Informed: Keep up-to-date with the latest BEC tactics and trends. Cybercriminals continuously evolve their methods, so staying informed can help you anticipate and counter new threats.