FBI Issues Revised PSA Warning of BEC Scams

The FBIs Internet Crime Complaint Center (IC3) issued a public service announcement (I-050417-PSA) recently updating previous warnings about the continued increase in business email compromise (BEC). This is a sophisticated scam that relies upon the victim being tricked into performing a fraudulent wire transfer or giving up other sensitive information such as W-2 details. While the crime can be carried out upon any type of organization, the IC3 particularly warns those who work with foreign suppliers or who regularly perform wire transfers.

In these types of scams, victims are convinced to give up information via E-mail Account Compromise (EAC). The scammers target particular persons who have authority to perform wire transfers. They then send email requesting the action. Often, they will impersonate a manager or someone with significant authority within the organization, such as the CFO.

Any time a request like these are made, it is critical to verify them before taking any action. According to the IC3 updated statistics, there have been over 40,000 BEC/EAC crimes costing over $5.3 billion between October 2013 and December 2016. In the last half of 2016 alone, these scams cost U.S. individuals over $346 million.

These scams can be avoided by taking just a few steps:

-Always have another person verify any wire transfers.

-Confirm with the requestor that he or she did indeed ask for it. Do this by placing a phone call, walking to his or her desk, or sending a new email message.

-Trust your instincts if a request seems strange. The boss would prefer to be questioned before you send off a fraudulent wire transfer.

Use caution about what information you provide on social media and business networking websites such as LinkedIn or Xing. Often, this is exactly how the scammers find out whom to target. If you work in the accounting department, perhaps reconsider putting your title on your profile. Instead, list broad descriptions of your job duties.

According to this recent PSA, the IC3 saw a “50% increase in the number of complaints in 2016 filed by businesses working with dedicated international suppliers.” It also saw a 480% increase in complaints regarding real estate transactions.

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