• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer
  • Jobs
  • Career
    • Cyber Security Training
    • Work from Home
    • Cyber Security Analyst
    • Remote Work – Six Ways to Keep Your Data Safe When Working Remotely
  • Field Guide
  • Newsletter Signup
  • Deals
  • News
AskCyberSecurity.com

AskCyberSecurity.com

Cyber Security News & Information

  • Home
  • Data Privacy
    • Gamers
    • Government Cyber Security
      • Legislation
      • Standards
        • What are the risks of computer security?
        • Medical Cyber Security
    • Social Media
  • Security
    • Data Breaches
    • Scams
    • Malware
  • Software
    • Apps
    • Web Browsers
  • Glossary
    • Cyber Security Acronyms
  • About Ask Cyber Security
    • Authors
    • Contact Us
  • VPN
    • How Do I Know If My VPN is Working?
    • Best Free VPN iPhone
    • Why Use a VPN?
    • NordVPN vs IPVanish
    • Private Internet Access Download
    • Best VPN for Streaming
      • TikTok VPN
    • VPN Porn
    • Computer Security Software – What You Really Need
  • Tutorials
AskCyber Home » News » cyber security » FBI Warns of Increasing BEC Scams and Advance Fee

FBI Warns of Increasing BEC Scams and Advance Fee

2020-04-14 by Michelle Dvorak

BEC Scam Advance Fee

FBI Issues Alert to Warn Government and Health Care Buyers of Advance Payment and BEC Scams

The US Federal Bureau of Investigations (FBI) issued an alert to government and health care buyers because of increasing scams targeting those who purchase personal protective equipment (PPE). The FBI alert reports a variety of fraud schemes targeting those who need to buy PPE gear, and other medical equipment such as ventilators which are in short supply. According to the FBI, the fraud involves domestics and foreign bad actors.

Fraudsters are using imposter scams to divert funds from legitimate orders. This type of fraud is known as a business email compromise (BEC) scheme. A BEC scheme occurs when a scammer uses an email address that is closely named to a legitimate email address that is familiar to the target. Often, the fraudulent email address is only a few letters different in spelling and may use a company name in the body of the email that is the same as or closely name for an existing business relationship. BEC schemes can use information gleaned from social engineering. The scammer may also call on the phone to give payment instructions or to gather more information to use in their imposter email.

The alert states, “In one case, an individual claimed to represent an entity with which the purchasing agency had an existing business relationship. By the time the purchasing agencies became suspicious of the transactions, much of the funds had been transferred outside the reach of U.S. law enforcement and were unrecoverable.”

FBI Says Scammers Want Money Up Front

Scammers may demand advance payment via wire transfer then never delivering goods. These scams are trending at a time where PPE equipment and ventilators are scarce. Buyers are stressed to find sources that can deliver equipment. Manufacturers are not committing to prices and contracts but are instead selling to highest bidders. Once an agreement has been struck, government buyers often report that the seller calls back a few hours alter to say they sold o someone else who is willing to pay more. This competitive buying climate creates a situation with convenient targets for scammers.

Indicators of a BEC Scam

  • Seller contacts the buyer first
  • Seller does not have details about the product such as manufacturer
  • Urgency to transfer funds
  • Email or phone request to divert payment to another account

A BEC scam is how Shark Tank host Barbara Cochran was scammed out of $360,000. The scammer emailed an invoice to her accountant, claiming to be an assistant known to the accountant and Ms. Cochran. The meal contained an invoice form a German company that was closely name for a company that Cochran does business with. Without verifying the validity of the invoice or who the email came from, Cochran’s bookkeeper wired the money to the hackers, Fortunately, with the help of a German bank, they were able to pull back the transfer and recover the money.

The FBI Alert Recommends the Following Mitigation Tactics

  • Do not contact the seller using any information given in an email or over the phone. Verify their business status and contact information through an independent source
  • Verify with the manufacturer or verified distributor that the seller is a legitimate distributor
  • Do not pay the seller until equipment is delivered or have the money held in escrow
  • Do not re-route payments without verifying the person requesting the change. Call the seller rather than responding to an email or another phone call
  • Verify the manufacturer, model, and quality of the purchased equipment

Filed Under: cyber security

About Michelle Dvorak

Michelle writes about cyber security, data privacy focusing on social media privacy as well as how to protect your IoT devices. She has worked in internet technology for over 20 years and owns METRONY, LLC. Michelle earned a B.S. in Engineering from Rensselaer Polytechnic Institute. Michelle published a guide to Cyber Security for Business Travelers


LinkedInTwitterFacebook

Primary Sidebar

Subscribe to Our Free Newsletter

We Don't Share or Sell Your Info

Web Browsers

Where Are My Saved Passwords in Chrome?

Google Removes 70 Malicious Browser Add-ons from Chrome Web Store

Firefox 75 Reports Your Browser Settings to Mozilla

Categories

Cyber Security Field Guide

Computer Security While TravelingGet Our Cyber Security Field Guide - Available on Amazon!

Recent Posts

Security Marketing Manager – Remote

Sr. Associate, Cybersecurity Architect – Pfizer

Strategic Customer Success Manager – Cybersecurity – Opportunity for Working Remotely

Top 20 Passwords Leaked on Dark Web

ISU Cybersecurity Leader Job Opening

Cyber Security News

Top 20 Passwords Leaked on Dark Web

… [Read More...] about Top 20 Passwords Leaked on Dark Web

Apple Warns of Actively Exploited Zero-Day Flaw

… [Read More...] about Apple Warns of Actively Exploited Zero-Day Flaw

IRS Stops Facial Recognition System for Online Access

… [Read More...] about IRS Stops Facial Recognition System for Online Access

National Cybersecurity Alliance Announces Data Privacy Week

… [Read More...] about National Cybersecurity Alliance Announces Data Privacy Week

More Cyber Security News

Tags

amazon Android Apple bitcoin China chrome CISA credit card DarkSide DHS DOJ Equifax Europe Facebook facial recognition FBI Firefox FTC games GDPR Google Government hacker identity theft India iPhone Iran IRS LinkedIn Microsoft North Korea PayPal phishing phishing email ransomware REvil Russia smartphone T-Mobile TikTok tutorial VPN WhatsApp WiFi Windows

Government

CBP Looks to Access Airline Passenger Data

FTC Releases Cyber Threat Video Playlist

Malware Found on US Government Funded Phones

UK NCA Reaches Out to Youth to Deter Cybercrimes

More Posts from this Category

Footer

Menu

  • Home
  • About
  • Authors
  • Newsletter Signup
  • PRIVACY POLICY

Search

Why Use a VPN?

NordVPN vs IPVanish VPN Review

NAVIGATION

  • Data Breaches
  • Data Privacy
  • Gamers
  • Scams
  • Malware

MEMBER NJCCIC

New Jersey Cybersecurity & Communications Integration Cell

STAY CONNECTED

  • Facebook
  • Instagram
  • Pinterest
  • YouTube
  • Twitter
  • RSS

Copyright © 2023 · AskCyberSecurity.com · METRONY, LLC

Go to mobile version