What is the Complete Guide to Business Email Compromise (BEC) Attacks in 2025?

You receive an urgent email from your CEO requesting a wire transfer. It looks legit—right email address, familiar language, and insider details. In reality, it’s a Business Email Compromise (BEC) attack that could cost your company millions.

Also known as CEO fraud or whaling, BEC attacks have become cybercriminals’ favorite way to target businesses because they work. In 2024 they were 33% more effective than in 2023.

In 2024 alone, these scams cost companies over $16.6 billion, with 256,256 complaints and an average loss of $129,000 per incident.

What is Business Email Compromise (BEC)?

BEC is a scam where attackers impersonate trusted parties—CEOs, business partners, or executives—to trick recipients into handing over sensitive information or money.

These attacks target businesses, government agencies, or any organization handling substantial funds or confidential data.

BEC vs. email phishing: what’s the difference?

Regular phishing casts a wide net; BEC is spearfishing—targeted, precise, and deadly effective. Key differences include:

• Requests involve large financial transactions or sensitive data transfers.
• Attackers conduct extensive homework, sometimes monitoring communications for months.
• Emails appear to come from legitimate contacts you trust.
• Messages reference real projects, vendors, or operations.
• The tone matches your company’s communication style.

The massive cost of BEC to businesses

The FBI reports BEC as the costliest cyber attack. In 2023, there were 277,918 BEC incidents with an adjusted loss of about $50 billion.

“Implementing DMARC is one of the highest ROI solutions available. Just make sure to insist on enforcement and automate the process.” – Alexander Garcia‑Tobar, CEO of Palisade

Email account compromise vs. BEC

Email Account Compromise (EAC) involves hackers gaining unauthorized access to a legitimate email account. While EAC can be used to launch BEC, BEC does not require a compromised account; attackers can spoof emails or use look‑alike domains.

Email spoofing

SMTP lacks built‑in authentication. Email authentication protocols—SPF, DKIM, and DMARC—help verify that messages using your domain are genuine and reject spoofed emails. 👉 https://www.palisade.email/tools/email-security-score

Lookalike domains

Attackers register domains that closely resemble yours (e.g., security‑firm.com vs. securityfirm.com) to make fraudulent emails appear legitimate.

Common types of BEC attacks

1. CEO fraud: Scammers impersonate executives and request urgent wire transfers.
2. Account compromise: Attackers use a hijacked email account to send convincing requests.
3. Attorney impersonation: Hackers pose as legal counsel to create urgency.
4. Data theft: Attackers aim to steal personal or sensitive data for resale.
5. False invoice scheme: Fraudsters pose as vendors and send fake invoices with fraudulent banking details.

Phases in a BEC attack

1. Target research

Hackers gather public and private information about your business, workflows, payment processes, and key personnel.

2. Attack preparation

They craft deceptive emails, obtain or spoof email accounts, and plan a believable scenario.

3. Social engineering

Attackers use urgency, scarcity, and authority to persuade the target to act without verification.

4. Data breach or financial loss

Success results in wire transfers, stolen credentials, or leaked personal data.

How to prevent BEC attacks

1. Email authentication: Deploy SPF, DKIM, and DMARC (with enforcement) to block spoofed emails. 👉 https://www.palisade.email/tools/email-security-score
2. Employee education: Conduct regular security awareness training on BEC tactics and social engineering.
3. Strong passwords & MFA: Enable multi‑factor authentication for email accounts and critical systems.
4. Secure processes: Enforce strict verification for financial transactions and changes to payment details.
5. Security monitoring: Use advanced email security solutions that detect anomalous sender behavior.
6. Incident response: Have a clear plan for reporting and handling suspected BEC attacks.

When you see an urgent request, always verify through a separate channel. Trust your gut—if something feels off, pause and confirm.

Real‑world BEC examples

• The $60 million mistake at Orion: In August 2024, a carbon‑black manufacturer lost $60 million due to multiple fraudulent wire transfers.
• A $3.4 million loss for a school district: In 2024, a Tennessee district was scammed out of $3.36 million by an email impersonating a textbook vendor.
• The $6.4 million beneficiary‑change scam: In 2023, a Massachusetts union was tricked into sending $6.4 million to a fraudulent account.
• Half‑million dollars hijacked from a construction invoice: In June 2024, a town in Massachusetts lost nearly $500 k due to a compromised vendor email.
• $2.1 million loss to vendor email compromise in Australia: A NSW government department wired AU $2.1 million to fraudsters posing as a trusted vendor.

Protect against BEC with Palisade

Implementing DMARC enforcement stops BEC emails before they reach inboxes. Palisade’s email security platform provides automated DMARC enforcement, real‑time threat detection, and comprehensive reporting.

Start your free Palisade Monitor account to see your domain’s authentication status and begin the path to full DMARC enforcement.

Create your free Palisade Monitor account

Quick Takeaways

• BEC attacks cost billions annually and are more effective than ransomware.
• They rely on social engineering, not malware—traditional endpoint security often misses them.
• DMARC enforcement is a high‑ROI defense that blocks spoofed emails.
• Employee training and verification procedures are essential to stop fraudulent wire requests.
• Multi‑factor authentication adds a critical layer of protection for email accounts.

Frequently Asked Questions

How does DMARC stop Business Email Compromise?

DMARC lets receiving servers verify that an email claiming to be from your domain is authorized. Unauthorized messages are rejected or quarantined, preventing spoofed BEC emails from reaching users.

Is Business Email Compromise the same as phishing?

No. Phishing casts a wide net, while BEC is targeted spear‑phishing that impersonates known contacts and usually lacks malicious links.

What steps should I take if I suspect a BEC attack?

Immediately halt the requested transaction, verify the request through a separate channel, alert your IT/security team, and report the incident to the FBI’s IC3 portal.

Can DMARC enforcement be automated for large organizations?

Yes. Palisade’s platform automates DMARC policy enforcement, monitoring, and reporting, scaling across multiple domains and sub‑domains.

Where can I learn more about email authentication best practices?

Read Palisade’s guide on email authentication best practices for detailed steps on SPF, DKIM, and DMARC implementation.