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Tuesday, April 5, 2016
FBI Warns Of Dramatic Increase In Business E-Mail Scams
The FBI released the below information:
FBI officials are warning potential victims of a dramatic rise in the business e-mail compromise scam or “B.E.C.,” a scheme that targets businesses and has resulted in massive financial losses in Phoenix and other cities.
The schemers go to great lengths to spoof company e-mail or use social engineering to assume the identity of the CEO, a company attorney, or trusted vendor. They research employees who manage money and use language specific to the company they are targeting, then they request a wire fraud transfer using dollar amounts that lend legitimacy.
There are various versions of the scams. Victims range from large corporations to tech companies to small businesses to non-profit organizations. Many times, the fraud targets businesses that work with foreign suppliers or regularly perform wire transfer payments.
Law enforcement globally has received complaints from victims in every U.S. state and in at least 79 countries.
From October 2013 through February 2016, law enforcement received reports from 17,642 victims.
This amounted to more than $2.3 billion in losses.
Since January 2015, the FBI has seen a 270 percent increase in identified victims and exposed loss.
In Arizona the average loss per scam is between $25,000 and $75,000.
If your company has been victimized by a BEC scam:
Contact your financial institution immediately
Request that they contact the financial institution where the fraudulent transfer was sent
Paul Davis is a writer who covers crime. He has written extensively about organized crime, street crime, sex crime, cyber crime, drug crime, white collar crime, crime fiction, crime prevention, espionage and terrorism. His 'On Crime' column appears weekly in the Washington Times. He is also a regular contributor to Counterterrorism magazine. His work has also appeared in the Philadelphia Inquirer, the Philadelphia Daily News and other newspapers, magazines and online publications. His crime fiction has appeared in online crime magazines. As a writer, he has attended police academy training, gone out on patrol with police officers, accompanied detectives as they worked cases, accompanied narcotics officers on drug raids, observed criminal court proceedings and visited jails and prisons. He has covered street riots, mob wars and murder investigations. Paul Davis' online "Crime Beat" column offers his long-form Q&As with cops, crooks and crime writers. Paul Davis has been a student of crime since he was a 12-year-old aspiring writer growing up in South Philadelphia. He enlisted in the U.S. Navy when he was 17 in 1970 and served on the aircraft carrier USS Kitty Hawk during the Vietnam War. He also served two years on the Navy harbor tugboat USS Saugus at the U.S. floating nuclear submarine base at Holy Loch, Scotland. Following his Navy service, he performed security work as a Defense Department civilian and worked part-time as a freelance writer. He was also a producer and on-air host of the radio program Inside Government for 14 years. He became a full-time writer in 2007. Paul Davis' On Crime and Crime Beat columns, his crime fiction and his magazine and newspaper pieces can be read on this website. His full bio can be read by clicking on the above photo.