WEBVTT

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Tom. an AP employee at

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one of our clients. received
an email seemingly from a known vendor.

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requesting a bank account change
for an upcoming invoice payment.

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It was a busy day.

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So to save time.
he called the number included in the email

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to confirm the request
and then made the change.

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The next day. his team sent

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a $620.000 wire to the new account.

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A week later.
the real vendor called the AP team

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since they hadn't received their payment.

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At that point. our client realized
they were a victim of fraud

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and contacted their bank team
to recall the transaction.

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The lost funds were never recovered.

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This real life
case study is an example of business

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email compromise.
also known as imposter fraud.

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One of the most persistent

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and costly threats
facing organizations today.

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With this scam.

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fraudsters impersonate someone you know

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and trust. a vendor. a senior executive.
or even a colleague

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to trick you
into sending payments to them.

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No organization is immune.

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These attacks
target businesses of all sizes

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and across every industry.

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The fraudulent request
may come from a spoofed email address.

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one that looks almost identical
to a legitimate one.

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but perhaps just a subtle change.

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Or worse.
it may come from an email account

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that's been hacked. often
through phishing.

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Imagine a senior executives

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email being used to request
a fraudulent wire transfer. or a vendor's

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email asking to update their bank account
details.

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Today's cybercriminals are smarter.

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more sophisticated. and better resourced.

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thanks in part to the availability
of generative artificial intelligence.

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They'll patiently research and study
their targets.

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crafting messages that seem legitimate.

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increasing the chances of success

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and the risk of financial loss.

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Here are three common types of business
email compromise.

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Executive imposter fraud. a

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fake email
from a senior leader requesting a payment.

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Vendor imposter fraud.

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a fraudster posing as a vendor to divert
invoice payments.

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Payroll imposter fraud.
changing an employee's

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direct deposit details
to steal salary payments.

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So how can you help

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protect your organization
against this threat?

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There is no silver bullet
to fraud prevention. but utilizing

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a layered defense strategy
can help make a difference.

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This starts with implementing and adhering

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to strong internal controls and practices.

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Always verify all requests for payments

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or changes to payment instructions.
especially changes

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to bank account details or payment types.

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And watch for any red flags.
including unusual

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or out of pattern requests. requests
with a high sense of urgency.

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requests asking for confidentiality.

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If you receive a request by email.

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never reply directly to the message
to validate it.

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Instead. pick up the phone and confirm
it verbally.

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reviewing all the details in the request.
such as the account and routing numbers.

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And for these verification callbacks..

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never use any contact information

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that may be included in the request.

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Use only the information
in your own system of record.

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such as your vendor master file.

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This was the mistake Tom

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made in the earlier case study.

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Use a dual custody process
with your payments.

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This setup requires two users

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on two different devices
to separately initiate and approve

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all payments or payment instruction
changes.

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It's a second chance
to stop a fraudulent payment

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before it goes out the door.

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Monitor your accounts regularly.

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We recommend daily reconciliations.
which can help detect

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unauthorized activity in a timely manner.

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Establish a goal of

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creating a cybersecurity culture
across your organization.

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For this to happen.
it's essential to provide

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regular fraud training to all employees.

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Ideally.
it shouldn't just be an annual event.

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Shorter. more frequent
sessions can be more effective

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in reminding employees that they are

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the first line of defense against fraud.

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If you detect or suspect fraud
with the payment.

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contact your bank team immediately.

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Time is critical in these situations.

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And remember. staying alert
and informed can help you stay protected.

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And thank you for watching this tutorial.