Understanding Business Email Compromise

Email is central to how today’s businesses operate. It’s fast, convenient and deeply embedded in everyday workflows. Unfortunately, that reliance has also made email a prime target for fraud. Business Email Compromise, or BEC, has become one of the most common and damaging threats facing organizations of all sizes, and it continues to become more sophisticated.

BEC is not the same as the mass phishing scams that many people associate with email fraud. Instead, it’s a targeted attack in which criminals impersonate a trusted individual — such as a vendor, executive, client or internal employee — to manipulate someone into taking a harmful action. Fraudsters often spoof an email address with a subtle variation or gain access to a legitimate account through stolen credentials. In some cases, they monitor email conversations for weeks to learn how a business operates before making their move.

The financial consequences can be significant. BEC schemes frequently involve requests to initiate wire transfers, change ACH payment instructions or share sensitive credentials. These requests are designed to feel urgent or confidential, pressuring employees to act quickly and bypass normal verification steps. Once funds are sent, recovery can be difficult — which makes prevention especially critical.

One reason BEC remains so effective is that it exploits human behavior rather than technical flaws alone. Employees want to be responsible and helpful, particularly in fast-paced environments or remote work settings where in-person confirmation is less common. Fraudsters take advantage of publicly available information — such as employee names, job titles or vendor relationships — to make their messages appear legitimate and timely.

Protecting against BEC requires a layered approach that blends awareness, internal controls and technology. A simple but powerful defense is to verify any request involving money movement or changes to payment instructions using a secondary communication method. If an email asks for updated banking information or an urgent transfer, pause and confirm the request by calling a trusted phone number already on file.

Strong internal controls also play an important role. Dual approval processes for payments, clearly documented procedures and consistent workflows reduce the likelihood that a single compromised email can result in a financial loss. Regular employee education is equally important. Teams should be trained to recognize red flags such as unexpected urgency, changes to normal payment behavior, slight email address variations or requests that discourage verification.

Technology can further strengthen these efforts. Multifactor authentication, strong password practices and account monitoring tools make it more difficult for criminals to access email systems and exploit them. While no single solution eliminates risk entirely, each added layer increases the effort required for fraudsters to succeed.

At Busey, we work closely with businesses to help them address BEC and other fraud risks through thoughtful Treasury Management strategies. This includes tools that support dual controls, real-time transaction reporting to monitor suspicious activity and ongoing education designed to reinforce strong internal practices. The goal is not just to respond to fraud, but to help prevent it by building awareness and resilience across the organization.

BEC is an evolving threat, but it does not have to be an inevitable one. By staying informed, encouraging employees to verify unusual requests and partnering with financial professionals who understand today’s fraud landscape, businesses can significantly reduce their exposure and protect what they’ve worked so hard to build.

Learn more about how Busey can help you safeguard your business at busey.com/treasurymanagement.

• Leslie Reardon is Executive Vice President — Executive Director of Treasury Management at Busey Bank.