New Report Highlights the Consequences of Ignoring BEC Attacks

A new report titled “Cyber’s Sleeper Threat: Business Email Compromise” from Guy Carpenter a business of Marsh McLennan analyzes Marsh’s claims database over the last five years. The report highlights the hidden danger of Business Email Compromise (BEC) attacks, emphasizing the need for increased awareness and security measures to combat this growing cyber threat. 

Guy Carpenter, a risk and reinsurance specialist, identified more than 550 successful BEC events impacting Marsh clients with either a cyber or crime insurance policy, with the greatest number having a loss around 0.1% of the company revenue. This ratio is a $1 million loss for a company that has $1 billion in revenue.

The report draws on data from the FBI’s Internet Crime Complaint Center which shows between October 2013 and December 2022, 137,601 people were victims of BEC crimes, with $17.1 billion in losses. The FBI reported 21,000 complaints related to BEC last year alone.

The report goes into more details by outlining some of the evolving tactics and techniques cyber criminals are using such as:

• Email Spoofing, which allows attackers to bypass email authentication mechanisms and evade detection by security filters.
• Attackers use Domain Impersonation and create fraudulent email domains or compromise legitimate domains to create email addresses that mimic trusted entities within an organization.
• Malware-Enabled Attacks leverage malicious software to compromise email accounts, exfiltrate sensitive information or facilitate fraudulent transactions. These attacks are a sophisticated variant of BEC wire fraud.

The prevalence of BEC attacks varies by industry with retail trade topping the list of companies falling victim to BEC attacks, followed by wholesale trade and education.

The report concludes that business email compromise (BEC) poses a significant cyber threat to companies worldwide, highlighting the need for heightened vigilance and proactive cybersecurity measures.

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