When it comes to cyber fraud, Social Engineering and Business Email Compromise are often used interchangeably, but they’re not the same.
Social Engineering occurs when an employee is tricked into sending funds or sharing sensitive information. Business Email Compromise (BEC) is broader. While Social Engineering losses generally fall within the BEC landscape, many BEC incidents involve the compromise of a legitimate email account, unauthorized access to email communications, payroll diversion, vendor payment redirection, or other fraudulent activity that may occur without direct manipulation of the victim.
According to the FBI Internet Crime Complaint Center (IC3), BEC generated more than $3 billion in reported losses in 2025, making it one of the most financially damaging cybercrime threats facing organizations today.
Why the Real Impact May Be Even Greater
Many experts believe BEC losses are significantly underreported. Organizations may recover funds, absorb smaller losses internally, or fail to report incidents to law enforcement. While reported BEC activity appears to have leveled off, criminals continue to achieve substantial losses through increasingly targeted and sophisticated attacks.
Why Time Matters
If a fraudulent wire transfer occurs, immediate action may improve the chances of recovery. The FBI IC3 Recovery Asset Team Financial Fraud Kill Chain Process helps financial institutions and law enforcement attempt to freeze and recover stolen funds, particularly when incidents are reported within 72 hours.
If you suspect a BEC event, immediately consider doing the following:
- Contact your financial institution.
- Report the incident to IC3.
- Provide wire transfer details as quickly as possible.
- Preserve emails and related records.
Organizations that establish clear response procedures and act promptly when fraud is suspected can possibly improve their ability to mitigate losses and support recovery efforts
Sources: IC3 Annual Report and Recovery Resources: [ic3.gov], [fbi.gov]
Encourage your clients to take a proactive approach to protecting their business in the event of a loss!
Make sure your clients have crime insurance. Take the steps to ensure that your clients are covered by calling one of the Berkley Crime team members listed below.
Sincerely,
Michael Beranek
Sincerely,
Michael Beranek
Berkley Crime
Experts focused on your protection. We deliver.
| National Practice Leader Michael Beranek (646) 522-7362 [email protected] | |
| West Regional Manager Brian Platt (720) 979-1155 [email protected] | Renewal Team Leader Cheryl Yorio (860) 466-7379 [email protected] |