1. Business Email Compromise (BEC): The Billion-Dollar Scam

It starts with a single email that looks completely legitimate - an invoice from a vendor, a message from the CEO, or a routine payment request. Except it isn’t. This is Business Email Compromise (BEC) - one of the fastest-growing and most costly forms of cybercrime.

Scammers gain access to (or convincingly spoof) a business email address, then send fake payment instructions or urgent transfer requests. Because they use real names, logos, and details, the messages can be hard to spot.

What it looks like:

• A vendor “updates” their payment account information.
• A CEO or executive urgently requests a wire or gift card purchase.
• A message warns of missed deadlines or “confidential” transactions.

How to prevent it:

• Confirm any payment changes or urgent requests by calling a verified contact - not the number in the email.
• Never approve high-value payments based on email alone.
• Use Dual Control for wires or ACH transfers so that one person initiates a payment and another approves it.

Even the savviest companies can fall for BEC. A single phone call for verification can save thousands of dollars.

2. Payroll Diversion and Vendor Scams

In payroll diversion, a scammer hacks or spoofs an employee’s email, asking HR to update direct-deposit details. Paychecks are then rerouted into the criminal’s account, often going unnoticed until payday.

Vendor scams work the same way: a fraudster intercepts invoices and swaps out banking details, redirecting legitimate payments.

Best practices:

• Require all payment or payroll changes to be confirmed by a second method (a phone call or in-person verification).
• Restrict access to payroll systems and vendor databases to essential personnel only.
• Review payment logs regularly for new or edited account details.

A quick internal check is often the difference between “business as usual” and a costly mistake.

3. Strengthen Defenses with Dual Controls and Employee Training

Technology matters, but people and procedures are your best line of defense.

Dual Control: For every outgoing payment, one employee should prepare the transaction, and another should review and approve it. This “maker-checker” system drastically reduces the risk of both internal fraud and human error.

Employee Awareness: Schedule regular, short training sessions on phishing awareness and fraud prevention. Simulated scam emails are a great way to keep everyone sharp.

Verification Steps: Encourage employees to pause and verify any unusual request - especially those involving payment information, new vendors, or urgent tone. A culture that rewards caution protects the bottom line.

4. Real-World Example: How One Business Caught a BEC in Time

A local manufacturer (an example adapted from a typical industry case study) received what looked like a routine invoice from a long-time supplier - same logo, same contact name, even the same email signature. The only difference? A new bank account number.

Because the company had a dual verification policy, their accountant called the supplier to confirm the change. The supplier hadn’t sent the message - a hacker had compromised their inbox. One phone call prevented a $48,000 loss.

This kind of vigilance isn’t luck - it’s process. And it’s what every small business can achieve with a few smart safeguards.