Cyber crimes in the United States have been staggering, especially among ultra-high-net-worth individuals. According to the FBI’s Internet Crime Complaint Center, $1.6 billion of losses are faced by Americans due to online crimes, though the actual number could be much higher due to negligence and lack of knowledge.
BEC or Business Email Compromise is one such leading form of cyber security threat. It has caused several UHNWIs to face security breaches, identity theft, and more, resulting in losses beyond recovery. In this blog, let’s understand BEC, how hackers target HNWIs via email, the harm it can cause, and how Avestar Capital can prevent email fraud prevention in the USA.
What is Business Email Compromise?
Business Email Compromise (BEC) is a highly professional cybercrime that exploits your email system. The attackers exploit the email systems and impersonate or deceive someone into transferring funds or breaching confidential information. Certain ways and tactics need to be understood for better cybersecurity for HNWIs.
Common email fraud schemes are the most used area of cyber attack and there are various types of Business Email Compromises scams.
Data Theft.
Scammers may not always be after the money. Data theft is a major business amongst scammers, which are sold to other companies or establishments. They could target the HR department and steal confidential information and personal information of top-ranking individuals.
False Invoice Scam.
Email scams targeting wealthy individuals could fake an invoice and could mimic your regular vendor, claiming to clear a bill. This often goes unnoticed at a large enterprise and the email or account number could be just a digit or alphabetical from the real ones.
Impersonation.
This happens to law firms and real estate companies, as unauthorized access to their email account is gained. The firm’s identity is used to send invoices to existing clients with a bank account that closely resembles the company.
Avestar Capital Tips To Prevent BEC Scam
Protecting UNHWIs from email frauds and Business Email Compromise (BEC) scams requires a multi-layered approach involving technical, educational, and procedural strategies. Here are some of the most effective measures the Avestar Capital guides to ultra-high-net-worth individuals (UHNWIs) and organizations must implement steps to secure financial emails, personal information, wealth, and data.
Two-factor authentication (2FA) for all email accounts adds an extra layer of security. This requires not only a password but also a second form of verification, like a text message or authentication app. Use advanced email filtering solutions that can identify and block phishing attempts and malicious attachments before they reach the inbox.
Avestar Capital cybersecurity tips feature double-checking requests before transferring funds or sharing sensitive information and verifying requests through an independent communication channel, such as a phone call to the known contact number. Use secure communication channels with encrypted messaging platforms for sensitive conversations rather than relying solely on email.
