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Business Email Compromise Scams Are Growing Threat to B2B Operations
Business email compromise (BEC) scams have become a top concern for organizations engaged in B2B transactions, as they target financial assets and sensitive information. According to the 2023 AFP Payments Fraud and Control report, 71% of organizations were targets of such scams in 2022.
In a recent PaymentsJournal podcast, Elly Aiala, Chief Compliance Officer at Boost Payment Solutions, and Albert Bodine, Director of Commercial and Enterprise Payments at Javelin Strategy & Research, delved into the intricate web of BEC scams, their evolving techniques, and the urgent need for proactive measures to safeguard the integrity of B2B operations.
PaymentsJournalBusiness Email Compromise Scams Are Growing Threat to B2B OperationsPaymentsJournal Business Email Compromise Scams Are Growing Threat to B2B OperationsPaymentsJournaljQuery(document).ready(function ($){var settings_ap26991303 = { design_skin: "skin-wave" ,autoplay: "off",disable_volume:"default" ,loop:"off" ,cue: "on" ,embedded: "off" ,preload_method:"metadata" ,design_animateplaypause:"off" ,skinwave_dynamicwaves:"off" ,skinwave_enableSpectrum:"off" ,skinwave_enableReflect:"on",settings_backup_type:"full",playfrom:"default",soundcloud_apikey:"" ,skinwave_comments_enable:"off",settings_php_handler:window.ajaxurl,skinwave_wave_mode:"canvas",pcm_data_try_to_generate: "on","pcm_notice": "off","notice_no_media": "on",design_color_bg: "111111",design_color_highlight: "ef6b13",skinwave_wave_mode_canvas_waves_number: "3",skinwave_wave_mode_canvas_waves_padding: "1",skinwave_wave_mode_canvas_reflection_size: "0.25",skinwave_comments_playerid:"26991303",php_retriever:"https://www.paymentsjournal.com/wp-content/plugins/dzs-zoomsounds/soundcloudretriever.php" }; try{ dzsap_init(".ap_idx_429985_29",settings_ap26991303); }catch(err){ console.warn("cannot init player", err); } });
B2B Companies Face Security Threats
In business email compromising fraud, cybercriminals send highly targeted and convincing emails to individuals within an organization as part of phishing attacks, often posing as trusted colleagues or partners. The emails may reference recent company events, projects, or even internal jargon, making them appear genuine.
B2B payments firms are prime targets for BEC scams because of their involvement in financial transactions. The improved sophistication of AI-generated content makes it easier for fraudsters to craft convincing emails with payment requests, invoices, or fund transfer instructions that appear legitimate. B2B payments firms may unwittingly process these fraudulent transactions, leading to significant financial losses.
“From my research, I expect an ongoing increase in B2B payments fraud over the next few years,” Bodine said. “I’ve noticed significant spikes in areas like occupational fraud, particularly related to business email compromise. Everybody really needs to be on high alert about those AI tools that are out there right now.”
Dealing with the aftermath of a successful BEC scam can also cause significant operational disruption for B2B payments firms. Funds may need to be recovered, investigations conducted, and security protocols enhanced. This can divert resources and time away from core business activities.
BEC Scams Shoot for Larger Businesses
According to the AFP report, larger organizations were more affected by BEC fraud, with 82% of them reporting incidents, compared with 62% of smaller organizations.
“My theory is that bad actors have pivoted to focus their efforts on larger organizations with more funds to potentially exploit as the risk-to-retu...
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By The PaymentsJournal PodcastBusiness email compromise (BEC) scams have become a top concern for organizations engaged in B2B transactions, as they target financial assets and sensitive information. According to the 2023 AFP Payments Fraud and Control report, 71% of organizations were targets of such scams in 2022.
In a recent PaymentsJournal podcast, Elly Aiala, Chief Compliance Officer at Boost Payment Solutions, and Albert Bodine, Director of Commercial and Enterprise Payments at Javelin Strategy & Research, delved into the intricate web of BEC scams, their evolving techniques, and the urgent need for proactive measures to safeguard the integrity of B2B operations.
PaymentsJournalBusiness Email Compromise Scams Are Growing Threat to B2B OperationsPaymentsJournal Business Email Compromise Scams Are Growing Threat to B2B OperationsPaymentsJournaljQuery(document).ready(function ($){var settings_ap26991303 = { design_skin: "skin-wave" ,autoplay: "off",disable_volume:"default" ,loop:"off" ,cue: "on" ,embedded: "off" ,preload_method:"metadata" ,design_animateplaypause:"off" ,skinwave_dynamicwaves:"off" ,skinwave_enableSpectrum:"off" ,skinwave_enableReflect:"on",settings_backup_type:"full",playfrom:"default",soundcloud_apikey:"" ,skinwave_comments_enable:"off",settings_php_handler:window.ajaxurl,skinwave_wave_mode:"canvas",pcm_data_try_to_generate: "on","pcm_notice": "off","notice_no_media": "on",design_color_bg: "111111",design_color_highlight: "ef6b13",skinwave_wave_mode_canvas_waves_number: "3",skinwave_wave_mode_canvas_waves_padding: "1",skinwave_wave_mode_canvas_reflection_size: "0.25",skinwave_comments_playerid:"26991303",php_retriever:"https://www.paymentsjournal.com/wp-content/plugins/dzs-zoomsounds/soundcloudretriever.php" }; try{ dzsap_init(".ap_idx_429985_29",settings_ap26991303); }catch(err){ console.warn("cannot init player", err); } });
B2B Companies Face Security Threats
In business email compromising fraud, cybercriminals send highly targeted and convincing emails to individuals within an organization as part of phishing attacks, often posing as trusted colleagues or partners. The emails may reference recent company events, projects, or even internal jargon, making them appear genuine.
B2B payments firms are prime targets for BEC scams because of their involvement in financial transactions. The improved sophistication of AI-generated content makes it easier for fraudsters to craft convincing emails with payment requests, invoices, or fund transfer instructions that appear legitimate. B2B payments firms may unwittingly process these fraudulent transactions, leading to significant financial losses.
“From my research, I expect an ongoing increase in B2B payments fraud over the next few years,” Bodine said. “I’ve noticed significant spikes in areas like occupational fraud, particularly related to business email compromise. Everybody really needs to be on high alert about those AI tools that are out there right now.”
Dealing with the aftermath of a successful BEC scam can also cause significant operational disruption for B2B payments firms. Funds may need to be recovered, investigations conducted, and security protocols enhanced. This can divert resources and time away from core business activities.
BEC Scams Shoot for Larger Businesses
According to the AFP report, larger organizations were more affected by BEC fraud, with 82% of them reporting incidents, compared with 62% of smaller organizations.
“My theory is that bad actors have pivoted to focus their efforts on larger organizations with more funds to potentially exploit as the risk-to-retu...