A Growing Threat: Business Email Compromise (BEC) and Accounts Receivable
Recently, the FBI issued a warning about a surge in Business Email Compromise (BEC) attacks, with a particular focus on Accounts Receivable departments. This is especially concerning during vacation seasons when team members may be out of the office, making companies more vulnerable to attacks. The threat is real: bad actors are successfully tricking employees in Accounts Receivable by impersonating vendors, leading to devastating financial losses.
How BEC Attacks Work in Accounts Receivable
In BEC attacks, cybercriminals compromise legitimate business email accounts to target billing departments. They often monitor these compromised accounts for an average of 11 days, learning the company’s billing practices and familiarizing themselves with communication patterns. Armed with this knowledge, they employ sophisticated social engineering techniques, sending fraudulent invoices or altering real ones to divert payments to their accounts.
In some of the worst cases reported, companies have been deceived into sending hundreds of thousands of dollars to these bad actors. The consequences are severe—not only in financial losses but also in damaged relationships with vendors and clients.
Why Vacation Season Is Prime Time for Attacks
Vacation periods are a prime time for fraudsters because:
- Reduced Supervision: With key employees away, approval processes may be relaxed, making it easier for fraudsters to exploit gaps in oversight.
- Disrupted Communication: Automated email replies or unexpected absences can provide attackers with critical information about your company’s routines.
- More Time to Prepare: Vacation downtime gives cybercriminals more time to study billing procedures and create convincing fraudulent invoices.
Quick Points to Consider
- Accounts Receivable Fraud is on the Rise: The FBI has raised the alarm, and the numbers are growing.
- Timing Matters: Invoice and impersonation attacks often increase during the summer when staff members are more likely to be out of the office.
- BEC Attacks Thrive on Vacation Schedules: Hackers leverage the absence of key personnel to familiarize themselves with your processes, making their attacks more convincing.
- BEC is the Easiest Path for Fraudsters: These attacks are hard to detect because they involve genuine email addresses, often bypassing traditional email security filters.
Immediate Actions to Protect Your Business
To mitigate the threat of BEC and keep your Accounts Receivable team safe, take the following steps:
- Remind Employees About Fraud Prevention
Make sure your team reviews SD 005: Prevent Wire Fraud Scams. Awareness is the first line of defense, and keeping fraud top of mind can reduce risks. - Train Accounts Receivable Staff
Provide specific training on how to spot BEC attacks. Your Accounts Receivable team needs to be familiar with the warning signs, like subtle changes in email addresses, unexpected changes in payment details, or unusual invoice amounts. - Stay Informed About M365 Security Enhancements
Microsoft is continuously improving its security features. Keep an eye out for new BEC detection capabilities that will be integrated into M365, helping you catch fraudulent activities earlier. - Run a Galactic MotherShip Scan
We highly recommend running a Galactic MotherShip scan to uncover potential vulnerabilities in your M365 environment. Identifying weak points is crucial in preventing attackers from gaining access to sensitive information.
Don’t Wait—Act Now!
By taking immediate steps to educate your employees, monitoring your systems, and staying up-to-date on security advancements, you can significantly reduce the risk of BEC in your Accounts Receivable department. The threat landscape is evolving, but proactive prevention can keep your business one step ahead of the attackers. Stay vigilant, especially during vacation seasons, and protect your bottom line from the growing menace of fraud.
