Business Email Compromise: When Fraud Looks Like It’s Coming from the Boss

Every business depends on trust and communication and that’s exactly what scammers exploit in a Business Email Compromise (BEC) attack. These sophisticated scams have cost businesses billions of dollars and are growing more common each year.

How the Scam Works

A scammer gains access to or “spoofs” a legitimate business email account often one belonging to a CEO, manager, or vendor. They use it to send messages that appear authentic, requesting wire transfers, payroll updates, or sensitive information. The emails are professional, urgent, and convincing.

A typical message might read, “I’m in a meeting - please wire $12,000 to this vendor immediately.” Because it appears to come from a trusted source, employees often comply before realizing the request was fake.

Common Red Flags

• A request for an urgent wire or payment change.
• Slight variations in the sender’s email address (for example, “.co” instead of “.com”).
• Instructions to keep the transaction “confidential.”
• Unusual payment destinations or new vendors.

Why It’s So Effective

BEC scams succeed because they play on trust, authority, and urgency. The scammer often researches the company, learning employee names, vendors, and procedures. They may even wait for a real business trip or holiday to strike, knowing key staff will be harder to reach.

How to Protect Your Organization

The most effective defense is a culture of verification over urgency.

• Confirm payment or wire requests using a known phone number, not an email reply.
• Review sender addresses carefully for small spelling or domain differences.
• Use dual authorization for large payments.
• Train all employees, not just leadership, to recognize red flags.

Even a quick call to confirm can save thousands. And remember, your financial institution can help you set up payment protections and verification processes to reduce risk.