How to protect your business from email fraud
Keeping your business safe from fraud starts with a few simple steps that help build a culture of prevention. Here’s how you can spot common scams and stop them before they strike.
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Email fraud is a growing problem
Email fraud is one of the most costly cyber threats facing companies today. Fraudsters are getting better at impersonating trusted people — like CEOs, vendors, and longtime employees — to trick businesses into making fraudulent payments or sharing sensitive security information.
But here’s the good news: Business email compromise is preventable. Fraudsters often depend on human error, not on high-tech hacking, so adding a few smart safeguards can help your business stop scams before it’s too late.
What is Business Email Compromise (BEC)?
BEC is a type of fraud where criminals use email to pose as someone you trust. Instead of relying on malware, these attacks use social engineering. They put pressure on employees, exploit trust, or create a false sense of urgency to drive action.
These are just a few common forms of email fraud:
- Real email accounts are taken over using stolen passwords
- Spoofed domains make fake emails look almost identical to real ones
- Executives or vendors are impersonated convincingly enough to trick employees
- Compromised vendor accounts send realistic payment requests
Whether the email asks for a wire transfer, a payroll change, or confidential information, the goal is the same: Move fast enough to slip through safeguards.
Here’s what your business should watch out for
Fraudsters tend to follow familiar patterns. Knowing what to look for helps your team spot trouble before it spreads.
These scams work when security steps are skipped or when employees don’t pause to verify a request. Slowing down and double-checking before acting is often enough to stop them.
1. Invoice fraud
You receive an “invoice” that looks legitimate. It may even be timed to match your usual billing cycles. But the payment details have been quietly altered.
2. Vendor or supplier compromise
Attackers access or mimic a vendor’s email account and send updated payment instructions, redirecting funds to a fraudulent bank account.
3. Executive impersonation
A senior leader sends out an email with an “urgent request” to send a wire transfer. The message might emphasize confidentiality or time constraints to make employees act fast.
4. Payroll diversion
An employee “updates” their direct deposit information. Without verification, the next paycheck goes straight to a fraudulent account.
5. Gift card scams
A request from a “company leader” comes through, asking for bulk gift card purchases to surprise the team with a well-earned reward. The gift cards are delivered to a fraud-friendly address.
What can you do to stop email fraud?
A strong defense doesn’t require complicated tools. All you need is a clear process and good guardrails.
1. Train your team regularly
Training doesn’t need to be complex — short refreshers each quarter go a long way. Employees should feel confident recognizing red flags like:
- Pressure or urgency in unexpected requests
- Slight changes to company email addresses
- Breaking normal or established processes
- Instructions to keep transactions confidential
2. Turn on Multi-Factor Authentication (MFA)
This is one of the simplest and highest-impact steps you can take. Most account takeovers start with stolen passwords, but adding a secondary form of authentication (like a code sent via text or email) dramatically reduces your company’s risk of third-party logins.
3. Verify all financial requests through a trusted channel
Before sending money or changing payment details, require a second confirmation via phone or in-person conversation. Never reply to the email directly if you suspect a scam.
4. Strengthen your email security
Small steps add up to big impacts. Basic security protocols are often overlooked, even at large organizations. Here’s what you can do to help prevent email fraud:
- Require strong, unique passwords
- Implement routine password updates
- Add anti-phishing security tools
5. Use email authentication protocols (DMARC, SPF, DKIM)
These settings help you identify impersonated emails and prevent spoofing by verifying unique digital signatures. You can think of it like having your system check the sender’s ID at the door. Your IT team or service provider can implement them quickly and easily.
6. Limit access to sensitive systems
Give employees access only to software that’s essential for their role. Having fewer access points reduces your company’s risk of a data breach.
7. Create a simple response plan
A quick response can minimize or prevent the damage caused by an attempted attack. Your team should know:
- How to report suspicious messages
- Authenticate a request that may not be legitimate
- What to do in the event of a suspected breach
Start building a culture of prevention
Business Email Compromise is a serious threat, but it’s also one you can prepare for. When your organization combines smart training, clear procedures, and common-sense protections, you create a reliable defense against email fraud.
For questions about fraud prevention, reach out to our team. We’re always here to help you put safety and soundness first.
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