Business Email Compromise: The Second Costliest Crime

 

A $2.9 Billion Problem

With 2023 adjusted losses exceeding $2.9 Billion, the FBI’s 2023 Internet Crime Report identifies BEC attacks as the second-costliest type of crime. In a recent survey by CertifID, more than half of the 650 homebuyers and sellers were not fully aware of these types of fraud risks.

While the victims in the CNN article believe the compromise was from the title company, these breaches often initiate with the real estate agent or brokerage. The fragmented system of real estate franchisors, franchises, brokers/groups, and agents, gaps in cybersecurity awareness and protections are common. Real estate is a rich target for these BEC attacks. Large dollar amount transactions and low security-vigilance among agents, buyers, and sellers attracts cyber attacks.

Your Business Email Compromise Risk

The scope of BEC attacks spans businesses of all sizes.  Your small business is a target because you are less likely to have adequate cybersecurity protections in place.  As a small business, you are also less likely to have procedural checks and balances in place. Your chance of identifying and thwarting a BEC attack is lower.

Business Email Compromise attacks may target payments you make, or those your customers make to you. In either case, a successful BEC can destroy your reputation, expose you to litigation and liability, and cost you tens of thousands of dollars.

Your Next Step

Your best next step is to evaluate how well you are protected from BEC attacks.  Use Referral Code 24RSA50 to request savings of at least 50% off our Rapid Security Assessment*. You can also schedule a brief, free call with one of our Cloud Advisors to discuss your cybersecurity risk and protections.

About the Author

Allen Falcon is the co-founder and CEO of Cumulus Global.  Allen co-founded Cumulus Global in 2006 to offer small businesses enterprise-grade email security and compliance using emerging cloud solutions. He has led the company’s growth into a managed cloud service provider with over 1,000 customers throughout North America. Starting his first business at age 12, Allen is a serial entrepreneur. He has launched strategic IT consulting, software, and service companies. An advocate for small and midsize businesses, Allen served on the board of the former Smaller Business Association of New England, local economic development committees, and industry advisory boards.

* Discount RSA offer requests must be received prior to 3:00 PM EST on Dec. 31, 2024.