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Step 1 of 4

Recognize

Spot the signs of fraud before they become a problem. Most business fraud looks ordinary. Your employees are the first line of defense.

Start here · 4 min read

Recognizing Fraud Before It Reaches Your Bottom Line

Every business depends on trust. You trust employees to make good decisions. You trust vendors to provide products and services. You trust customers to conduct business honestly. Every day, those relationships help your business move forward.

Step 2 of 4

Verify

Don't trust the request. Verify it another way. Verification is a business process, not a suspicion, and it should never depend on urgency.

Start here · 3 min read

Verification Is a Business Process, Not a Suspicion

Successful businesses are built on relationships. You trust your employees to make good decisions. You trust vendors to deliver products and services. You trust customers to do business honestly. Those relationships allow work to move quickly and efficiently every day.

Step 3 of 4

Protect

Build layers of security around your accounts. Small improvements, made consistently, add up to a business that's hard to target.

Start here · 4 min read

Building a Business That's Difficult to Victimize

No business is completely immune from fraud or cyber threats. Technology changes. Criminals develop new tactics. Businesses adopt new software, hire new employees, and work with new vendors. As your business evolves, so do the risks it faces.

Step 4 of 4

Respond

Take action quickly if something doesn't seem right. A calm, organized response protects your business, your customers, and your employees.

Start here · 3 min read

Responding with Confidence When Something Goes Wrong

No business owner wants to receive a phone call that begins with: “Something isn’t right.” It could be a suspicious payment.

Keep this handy

Business Confidence Card

Fraud often depends on urgency, trust, and routine. Before approving a payment, changing account information, opening an attachment, or responding to an unusual request, take a moment to run through these four steps. Slow down, trust your instincts if something feels different, and remember that it's always okay to ask one more question before taking action.

Recognize

  • Ask whether this request was expected.
  • Notice when someone creates urgency or pressure to act immediately.
  • Question any change to payment or account information.
  • Check that the sender's email address matches exactly.
  • Confirm the request follows your normal business process.
  • When in doubt, verify before acting.

Verify

  • Use a trusted phone number, not the contact information provided.
  • Independently verify payment instructions and banking changes.
  • Follow your organization's established approval procedures.
  • Never bypass internal controls because of urgency or pressure.
  • Document important verification steps.
  • Ask questions whenever something seems unusual or unexpected.

Protect

  • Use strong, unique passwords and enable multi-factor authentication.
  • Keep business devices, software, and systems up to date.
  • Review employee access and remove permissions no longer needed.
  • Back up important business information and know how to recover it.
  • Train employees regularly and encourage them to ask questions.
  • Review and improve your security practices every year.

Respond

  • Stay calm and understand the situation before taking action.
  • Secure affected accounts, systems, devices, or payment activity.
  • Notify the appropriate leaders, trusted advisors, and business partners.
  • Document what happened and the actions taken.
  • Communicate honestly with employees and customers when appropriate.
  • Review the incident, identify lessons learned, and strengthen your processes.

Verification is good business. Consistency is more reliable than memory, good processes reduce both fraud and honest mistakes, and protection is built one good habit at a time. If an email, invoice, payment request, or other business communication doesn't seem right, talk to your banker at First Bank of Berne before taking action. We're here to help you protect your business with confidence.

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Business Email Compromise (BEC): The Costliest Scam Facing Businesses

Business Email Compromise (BEC): The Costliest Scam Facing Businesses

October 01, 2026

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.

Part of Bank Safe at First Bank of Berne

This deep dive builds on the Business Recognize starting point, Recognizing Fraud Before It Reaches Your Bottom Line.

This article is part of Bank Safe: practical guidance to recognize scams, verify requests, protect what matters, and respond with confidence.

Not sure? Start with us.

Still have questions?

If something claims to be from First Bank of Berne and you're not sure, contact us before you respond. Call, stop by a branch, or send a secure message. You don't have to figure it out alone.