Managing The Risks Of Email Compromise Fraud

Email compromise fraud is an increasingly common cyber risk that can result in significant losses and liabilities to targeted organizations and their customers and business partners. Three Canadian courts have considered claims resulting from email compromise fraud. The decisions illustrate the risks associated with email compromise fraud, and provide guidance for managing those risks.

Email compromise fraud

Email compromise fraud, also known as Business Email Compromise (BEC) or Email Account Compromise (EAC) fraud, is a sophisticated scheme that targets businesses and individuals who perform electronic funds transfers. The scheme commonly involves emails sent from hacked or spoofed internal (e.g. senior officer) or external (e.g. vendor or customer) email accounts that give fraudulent instructions to make electronic payments to the account of the fraudster instead of the account of the intended payment recipient. Email compromise fraud often involves the use