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Compromised Business Emails Accounted for Half of Cybercrime Losses in 2019, FBI

Date: Mar 09, 2020 @ 09:10 AM
Filed Under: Industry News

The FBI’s Internet Crime Complaint Center received a total of 467,361 complaints with reported losses exceeding $3.5 billion, half of which it attributed to hackers targeting business email communication.

In 2019, the IC3 received 23,775 Business Email Compromise (BEC) / Email Account Compromise (EAC) complaints with adjusted losses of over $1.7 billion. BEC/EAC is a sophisticated scam targeting both businesses and individuals performing a transfer of funds. The scam is frequently carried out when a subject compromises legitimate business e- mail accounts through social engineering or computer intrusion techniques to conduct unauthorized transfers of funds.

BEC/EAC is constantly evolving as scammers become more sophisticated. In 2013, BEC/EAC scams routinely began with the hacking or spoofing of the email accounts of chief executive officers or chief financial officers, and fraudulent emails were sent requesting wire payments be sent to fraudulent locations. Over the years, the scam evolved to include compromise of personal emails, compromise of vendor emails, spoofed lawyer email accounts, requests for W-2 information, the targeting of the real estate sector, and fraudulent requests for large amounts of gift cards.

In 2019, the IC3 observed an increase in the number of BEC/EAC complaints related to the diversion of payroll funds. In this type of scheme, a company’s human resources or payroll department receives an email appearing to be from an employee requesting to update their direct deposit information for the current pay period. The new direct deposit information generally routes to a pre-paid card account.

Read here for more on the report.

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