Business email compromise scam rising: Here’s what to watch for

JACKSON, Tenn. — The Better Business Bureau is warning employees of a scam in the workplace.

Business email compromise scams are one of the costliest scams out there. Scammers target employees working at small businesses or even city government officials.

Toddnetta Trice, Communications Specialist with the Better Business Bureau of the Mid-South, tells us how this scam works.

“Scammers hack or spoof email accounts,” Trice said. “They can pose as someone inside that organization that you work for like your boss, executive, or trusted vendor that you pay to get things done to trick employees into sending money or sensitive information.”

Common targets include HR and payroll departments, where scammers may request employee W2’s or other sensitive data.

“In 2022, the City of Memphis actually lost almost $774,000 when a scammer posed as a contractor and tricked a city employee into wiring the money, and last year, a West Tennessee nonprofit was hit for nearly $400,000 after sending funds to a fake vendor account,” said Trice.

Here are a few ways you can protect yourself against business email compromise scams.

First, verify before you pay.

Also, be suspicious of unusual requests to update or verify account information.

“Scammers are becoming very more skillful when it comes to coming up with email addresses that looks really closely with the person that you have been communicating with, so one letter off is all it takes,” Trice said. “So an ‘I’ may turn into an ‘L’ or an ‘L’ may turn into a ‘I’.”

Also refrain from acting too fast and do not be afraid to ask questions.

Trice urges residents to turn on two-factor identification for your email if you haven’t already.

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