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Since 2013 More Than $26 Billion Has Been Scammed by BEC/EAC (Business Email Comprise/Email Account Compromise aka Spearphishing)!

The FBI Internet Crime Complaint Center (IC3) announced “Domestic and international exposed dollar loss: $26,201,775,589 “ by BEC/EAC which “…is a sophisticated scam that targets both businesses and individuals who perform legitimate transfer-of-funds requests…. The scam is not always associated with a transfer-of-funds request. One variation involves compromising legitimate business email accounts and requesting employees’ Personally Identifiable Information or Wage and Tax Statement (W-2) forms.”  The September 10, 2019 FBI Public Service Announcement entitled “BUSINESS EMAIL COMPROMISE THE $26 BILLION SCAM” included these comments:

The BEC/EAC scam continues to grow and evolve, targeting small, medium, and large business and personal transactions.

Between May 2018 and July 2019, there was a 100 percent increase in identified global exposed losses.

The increase is also due in part to greater awareness of the scam, which encourages reporting to the IC3 and international and financial partners.

The scam has been reported in all 50 states and 177 countries.

Fraudulent transfers have been sent to at least 140 countries.

Based on the financial data, banks located in China and Hong Kong remain the primary destinations of fraudulent funds.

However, the Federal Bureau of Investigation has seen an increase of fraudulent transfers sent to the United Kingdom, Mexico, and Turkey.

I sure wish we could get some control over BEC/EAC!

© 2023 Foley & Lardner LLPNational Law Review, Volume IX, Number 330

About this Author

Peter Vogel, trial attorney, Foley Lardner

Peter Vogel is renowned as both a trial and transactional lawyer who deeply understands technology, science and intellectual property, and the opportunities and problems they pose for clients. Governments and administrative agencies, as well as major corporations and emerging businesses, rely on Peter to get right to the heart of an information technology or e-discovery dispute; he knows what to expect and how it will play out in the courtroom. This eliminates unproductive rabbit trails and reduces the cost of litigation for all parties. When negotiating agreements for...