Ask the treasuryXL expert #3 How to prevent fraud caused by BEC for my treasury department?

17-8-2022 | treasuryXL | Zhanna Irgaliyeva| LinkedIn |

treasuryXL is the community platform for everyone with a treasury question or answer! treasuryXL expert Zhanna Irgaliyeva is more often asked what you can do about fraud caused by BEC. Today she will tell us a few tools to prevent BEC scams for your treasury department.

BEC fraud

Question: “How to prevent fraud caused by BEC for my treasury department?”

Answer provided by Zhanna Irgaliyeva

What are BEC scams?

A BEC fraud or scam, or “Business Email Compromise” scam, is a type of cybercrime that involves tricking and defrauding individuals or businesses into transferring money or sensitive information through fraudulent emails. The compromise of business emails is a significant and spreading issue that affects businesses of all sizes and in every sector worldwide. Organizations have been exposed to potential losses in the billions of dollars due to BEC schemes. BEC scams are everywhere and they never go away.

What would you recommend to prevent fraud caused by BEC scams?

There are a few tools I recommend you to use to prevent BEC scams. First, it would be smart to rewrite the company’s policy and procedures to include internal controls to reduce fraud. You could verify new or updated beneficiary data not via email, but via a Main Agreement or Change Orde. Another option is separation of duties through the use of two-factor authentication.

Also, make sure to train your staff on the different types of BEC fraud and familiarize them with updated internal controls to mitigate the risk of fraud. Then, secure your email, and regularly update the required antivirus software. Daily reconciliation of company’s accounts would also be smart to do for early identification of BEC scams. Finally, always stay alert with everyday payment transactions as BEC scam can pop up just like that.

Zhanna Irgaliyeva

Reference: Association of Financial Professionals


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