Business Email Compromise: How the Scam Works

Business email compromise (BEC) is a scam where an attacker impersonates an executive, supplier or colleague by email to trick someone into sending money or changing payment details. There is often no malware – it relies on a convincing message and a rushed decision.

How it works

  • Reconnaissance – the attacker learns who pays invoices, who the suppliers are, when the boss travels (often from a compromised mailbox)
  • The setup – a lookalike domain, a spoofed sender, or a genuinely hacked account
  • The ask – an urgent wire transfer, a change of bank details on a supplier account, or gift cards – always with pressure and secrecy
  • The loss – money moves to an account the attacker controls and is gone within hours

Why it beats technical defences

Filters look for malware and bad links; a plain-text email asking for a payment change has neither. BEC targets the process and the person, so the defence has to as well.

The controls that stop it

  • Verify out of band – any payment or bank-detail change confirmed by a phone call to a known number, never a number in the email
  • Dual approval for payments over a threshold
  • MFA on all mailboxes, so accounts are harder to hijack
  • Email authentication (SPF, DKIM, DMARC) to make spoofing your domain harder
  • Staff training on the exact pattern – urgency, secrecy, payment change

We put these in place through our cybersecurity service.

Related security guides

Want this handled? See our cybersecurity service or talk to our Edmonton team.

Frequently asked questions

Is BEC the same as phishing?

It is a targeted form of it. Regular phishing casts wide with malicious links; BEC is researched, personalised, and usually asks for a payment or data change rather than a click.

How do we recover money lost to BEC?

Contact your bank immediately – within 24 hours there is sometimes a chance to recall the transfer. Report it to police and, in Canada, the Canadian Anti-Fraud Centre. Prevention matters far more than recovery.

Does MFA stop BEC?

It stops the account-takeover version by making mailboxes hard to hijack. It does not stop a spoofed external email – that needs verification procedures and training.

How does Scandifix help?

We set up MFA and email authentication, help you write the payment-verification procedure, and train staff on the BEC pattern.