Every day, businesses rely on email to communicate with customers, vendors, accountants, attorneys, and employees. It keeps projects moving, payments flowing, and decisions happening quickly.
Unfortunately, criminals rely on that same trust.
One of the most damaging forms of business fraud today is known as Business Email Compromise (BEC). Rather than breaking into computer systems with sophisticated hacking techniques, criminals often use carefully crafted emails to convince employees to voluntarily send money or share sensitive information.
The technology involved is usually simple.
The deception is remarkably convincing.
And because the requests often appear routine, businesses sometimes don’t realize anything is wrong until after the money is gone.
What Is Business Email Compromise?
Business Email Compromise is a fraud scheme in which criminals impersonate someone your business already trusts.
That might include:
- A company executive.
- A vendor or supplier.
- A customer.
- Your accountant or attorney.
- A payroll employee.
- A coworker.
The goal is to persuade someone inside your organization to:
- Send a wire transfer.
- Change ACH payment information.
- Pay a fraudulent invoice.
- Purchase gift cards.
- Share confidential employee information.
- Provide login credentials or financial data.
Unlike traditional cyberattacks, BEC depends more on human behavior than technology.
Criminals aren’t trying to force their way in.
They’re trying to convince someone to open the door.
How Business Email Compromise Happens
Most BEC attacks follow a similar pattern.
Step One: Learn About the Business
Criminals gather publicly available information.
They review company websites.
Read social media posts.
Study LinkedIn profiles.
Identify executives, accounting staff, and employees responsible for payments.
Sometimes they monitor news releases or public announcements to understand how the business operates.
The more they learn, the more believable their communication becomes.
Step Two: Build Trust
Next, criminals either compromise a legitimate email account or create one that closely resembles it.
An address like:
accounting@abccompany.com
might become:
accounting@abc-companny.com
At a quick glance, the difference is easy to miss.
Other times, criminals gain access to an actual email account and quietly monitor conversations before sending their request.
Step Three: Wait for the Right Opportunity
Patience is part of the strategy.
A criminal may wait until:
- A large invoice is due.
- A construction project reaches a payment milestone.
- A business owner is traveling.
- Payroll is being processed.
- Employees are especially busy.
When the timing feels natural, they send the request.
Step Four: Create Urgency
Nearly every BEC scam includes pressure.
The email may say:
- “This must be paid today.”
- “Please keep this confidential.”
- “I’m in meetings and can’t talk.”
- “The closing depends on this wire.”
The objective is to prevent employees from slowing down and asking questions.
Common Business Email Compromise Scenarios
While every business is different, many BEC attacks follow familiar patterns.
Vendor Payment Fraud
A trusted vendor appears to send updated banking instructions.
The next ACH or wire payment is redirected to the criminal’s account.
Executive Impersonation
An employee receives what appears to be an urgent request from the business owner or CEO asking for an immediate wire transfer.
The employee complies, believing the request is legitimate.
Payroll and HR Fraud
Someone pretending to be an executive requests employee W-2 forms, payroll information, or direct deposit changes.
Sensitive information is released before anyone realizes the request was fraudulent.
Gift Card Scams
An employee receives a message asking them to purchase gift cards for clients, employee appreciation, or a special event.
After the gift card numbers are shared, the funds cannot be recovered.
Why These Scams Work
Business Email Compromise isn’t successful because employees lack intelligence.
It’s successful because it takes advantage of normal business behavior.
Employees want to be helpful.
Accounting teams want to pay vendors on time.
Managers want to support executives.
Customer service teams want to solve problems quickly.
Criminals exploit those positive qualities by creating situations where acting quickly feels more important than verifying the request.
Warning Signs Worth Noticing
Although every situation is different, many BEC attempts include similar warning signs.
Pay closer attention when you notice:
- Unexpected payment requests.
- Changes to banking information.
- Requests involving secrecy or confidentiality.
- Pressure to act immediately.
- Emails that don’t quite sound like the sender.
- Slightly different email addresses or domain names.
- Requests that bypass your normal approval process.
One warning sign doesn’t necessarily indicate fraud.
Several together should encourage additional verification.
Prevention Starts With Good Processes
The most effective businesses don’t rely on employees to identify every possible scam.
Instead, they build processes that make fraud more difficult.
Consider practices such as:
- Verifying payment changes through a trusted phone number.
- Requiring dual approval for significant wire transfers.
- Separating payment responsibilities among employees.
- Encouraging staff to question unusual requests.
- Providing regular fraud awareness training.
- Following the same verification procedures every time.
Consistency protects both your business and your employees.
Remember
Business Email Compromise isn’t just a technology problem.
It’s a business process challenge.
The strongest organizations don’t try to predict every new scam.
They build a culture where employees slow down, verify unexpected requests, and feel comfortable asking questions before money or sensitive information leaves the business.
Technology will continue to evolve.
Criminals will continue to adapt.
But thoughtful employees, strong procedures, and a culture of verification remain some of the most effective defenses available.
Need Help?
If your business receives an unusual payment request, suspects a compromised email account, or simply wants guidance on strengthening fraud prevention procedures, First Bank of Berne is here to help.
Helping local businesses protect what they’ve worked hard to build is part of our commitment to the communities we serve.