Business Email Compromise

Companies are facing multiple, complex threats to email security. Hacked emails, fraudulent invoices, and payment instructions from impersonators of company executives, authorized colleagues, or business partners are growing at an alarming rate.


WHAT IS BUSINESS EMAIL COMPROMISE?

Business email compromise, also known as email fraud, is a billion-dollar crime industry that tricks employees into sending money and sharing company information.



CEO FRAUD

With email fraud coming at businesses from inside and out, awareness at every level is one of your best defenses.



INVOICE FRAUD

The FBI warns about three types of invoice fraud that could be very costly to vulnerable businesses.

 

HELP PROTECT YOUR BUSINESS
 

Prevention Tips
  • Create company policies
  • Call the requestor or visit in person
  • Always use a phone number on file, not one provided in the request, when verifying payment instructions
  • Watch for changes in wiring instructions on invoices (mailed and emailed)
  • Validate payment instructions with details on file
  • Never confirm wiring instructions via email in case your email system has been compromised
  • Implement multiple approvals for large remittance amounts
  • Implement approval protocol when executives initiate a transaction
  • Set checks and balances
  • Ensure employees understand how to decipher fraudulent emails and URLs.
    • Watch for slightly different email addresses, switching out or adding one letter is a successful way to make an email look legitimate. The substitution of “r” and “n” for “m” (i.e., rn) can easily be overlooked.
  • Supply employees with instructions if they suspect or experience fraud. It is important to act quickly.
Technology

Build in system controls within the IT portion of your business to map existing workflows for ACH and wire payments. Identify weaknesses that could expose you to risk.

WHAT TO DO IF YOU SUSPECT FRAUD

If your business experiences fraud, immediately contact your California Bank & Trust branch or call Treasury Management Client Services at (800) 254-2265 and file a complaint with the IC3 at ic3.gov/complaint.

WE'RE HERE TO HELP

For information on fraud prevention services and tools, contact your California Bank & Trust branch.