Combating business email compromise: Strategies for financial firms

Combating business email compromise: Strategies for financial firms

In the ever-evolving landscape of financial crimes, firms across the globe are grappling with the challenge of safeguarding their operations and reputation. Among the myriad of schemes that threaten the integrity of financial institutions, Business Email Compromise (BEC) stands out for its cunning simplicity and potentially devastating impact.

These cybercrimes, which manipulate businesses into unwittingly transferring funds or sensitive information, underscore the pressing need for robust protective measures.

ACA Group, a developer of scalable compliance, risk and technology solutions, recently offered some guiddance around BEC.  

At its core, BEC fraud involves the use of deceptive emails that masquerade as legitimate requests from high-ranking officials within the company or trusted external partners, it said. The attackers’ goal is to lure the recipient into making unauthorized payments or divulging confidential data. Such schemes serve as a conduit for laundering money, with the illicit proceeds flowing into accounts under the criminals’ control, thereby obscuring the trail back to the original crimes.

Invoice fraud, a common variant of BEC, further illustrates the sophistication of these scams. Here, the fraudsters issue requests for payment on fabricated invoices, or they inflate the amounts due on legitimate ones. Compliance becomes an inadvertent act of complicity, funneling company assets into the hands of the perpetrators.

Firms are not powerless in the face of this threat, however. Implementing stringent email security protocols, such as advanced spam filters and the requirement for two-factor authentication, significantly reduces the risk of successful BEC attacks, ACA said. Furthermore, educating employees on the hallmarks of phishing attempts and instilling a culture of verification for all financial transactions are critical steps in building a resilient defense.

The aftermath of a BEC incident can be mitigated through prompt action, including reporting the crime to law enforcement and seeking specialized legal counsel. Such measures not only aid in the recovery process but also contribute to a collective effort to stymie the spread of these financial crimes.

ACA’s Anti-Money Laundering (AML) and Financial Crimes practice offers a beacon of hope for firms navigating these treacherous waters. With a suite of advisory services and cutting-edge solutions, ACA stands at the ready to assist financial entities in fortifying their defenses against BEC and other forms of financial crime. Through risk assessments, policy development, and the integration of ComplianceAlpha regulatory technology, ACA equips firms with the tools necessary to not only detect but also deter the machinations of modern cybercriminals.

For more information about business email compromise, read the full story here.

Keep up with all the latest FinTech news here.

Copyright © 2024 FinTech Global

Enjoyed the story? 

Subscribe to our weekly RegTech newsletter and get the latest industry news & research

Copyright © 2018 RegTech Analyst


The following investor(s) were tagged in this article.