By Ryan Pietz, AVP, Compliance & BSA Officer, Oregon Pacific Bank
Business Email Compromise (BEC) has been around since the days of dial-up and remains to this day one of the most damaging forms of fraud. And like the viruses it tries to proliferate, it’s not just hanging around, it’s evolving.
Unlike consumer fraud that often involves stolen cards or disputed charges, Business Email Compromise targets routine business activity: invoices, vendor payments, payroll, and wires. And thanks to the proliferation of AI (both in sophistication and ease of use/access), the emails don’t look suspicious anymore. They look professional, they look familiar, and increasingly, they’re created using AI tools that remove the spelling and grammar errors people once relied on to spot a scam.
As Ryan Pietz, AVP, Compliance & BSA Officer at Oregon Pacific Bank, explains, “Business email compromise is persistent because it blends into everyday operations, and when it succeeds, the financial impact can be significant.”
Why Business Email Compromise Persists, and Why It’s So Costly
Business Email Compromise remains one of the most persistent fraud threats because it attacks process and trust, not systems.
Fraudsters don’t need to break into a network. They only need one convincing email (often impersonating a known vendor, executive, or trusted contact) to trigger action. Unfortunately, AI has accelerated this problem. Emails that once appeared poorly written can now be crafted to sound professional, timely, and credible. That removes one of the most obvious red flags businesses used to rely on.
The scale of loss is also different. Once funds are sent via wire or ACH, recovery options are limited. Unlike checks or card transactions, there is no traditional “chargeback” process.
“When money moves through faster payment rails, the window to recover it is extremely small,” Ryan notes. “Once it’s gone, it’s often gone for good.”
Where Businesses Let Their Guard Down
Most BEC incidents don’t happen because someone is careless. They happen because someone is busy. Ryan describes it as something everyone in the business world knows too well: autopilot.
Invoices are processed every day. Payments are routine. And when a request looks familiar, attention shifts to completing the task, not questioning it.
Fraudsters exploit this mindset by introducing:
- Urgency (“This must be paid today.”)
- Authority (executive or vendor impersonation)
- Process fatigue (“Just one more invoice.”)
Red flags are often subtle:
- A payment instruction changes
- Banking details are updated
- An email arrives at an unusual time
- The sender’s domain looks almost correct
“When people don’t ask the extra question, that’s when losses happen,” Ryan explains.
Slowing the Process Down: What Actually Helps
The most effective defense against BEC isn’t a single tool, it’s intentional friction.
Ryan emphasizes that prevention starts with culture, led from the top and reinforced at every level of the organization:
- Management awareness of fraud risks
- Clear expectations that questions are encouraged
- Defined approval and verification protocols
Effective practices include:
- Treating any payment change as an exception
- Verifying requests using trusted contact information, not reply emails
- Pausing when urgency is introduced
- Confirming vendor changes by phone using known numbers
Even simple habits help:
- Hover over email addresses and links
- Look closely at domain names
- Consider whether the timing makes sense
“Fraud prevention often comes down to slowing down and asking, ‘Does this make sense?’” Ryan says.
Employee Education: Turning Your Team into the First Line of Defense
One of the most effective and often overlooked defenses against Business Email Compromise is employee education.
In today’s environment, fraud prevention can’t live with a single security officer, IT team, or finance manager. Because BEC targets everyday workflows and trusted relationships, every employee who touches email becomes part of the security perimeter.
That’s especially true in smaller businesses and nonprofits, where responsibilities are shared and teams wear multiple hats. A single employee processing invoices, responding to vendors, or acting on an urgent request may unknowingly be the last checkpoint before funds are sent.
Education doesn’t need to be complex or technical. In fact, the most effective awareness efforts focus on helping employees recognize when to pause.
“When businesses invest in fraud awareness,” Ryan explains, “they’re not just protecting systems, they’re empowering people to slow down and think before acting.”
Just as important, employees need to know they are expected and supported to ask questions. Creating a culture where verification is encouraged, not discouraged, helps remove the hesitation that fraudsters rely on.
Technology Helps, But It’s Not Enough
Email filters and alerts can flag suspicious messages, but technology alone can’t prevent BEC. Smaller organizations may not have sophisticated systems, and even strong filters can’t catch everything, especially when emails are carefully crafted to appear legitimate.
As Ryan puts it, “Tools can help surface warnings, but someone still has to stop and think before sending money.”
The strongest fraud prevention strategies combine smart tools with educated employees who know when to stop and verify.
If Something Goes Wrong: Act Fast
If a business suspects fraud, speed matters.
“Once funds move, time becomes critical,” Ryan explains. “The sooner we know, the more options we may have.”
The first step should always be to contact your bank immediately. Early reporting increases the chances of stopping or recovering funds, even if the window is small.
If You Remember Nothing Else…
If there’s one takeaway for business owners, it’s this:
- Slow down payment decisions
- Treat payment changes as red flags
- Verify requests using trusted contacts
- Question urgency, especially when money is involved
- When in doubt, ask before acting
- Talk openly with your team about fraud risks and encourage questions
Fraud prevention isn’t about paranoia. It’s about building habits that protect your business when things don’t feel right.
Resources
Download our Quick Reference Guide for Business and share it with your team: Business-Email-Compromise-OPB-Quick-Reference-Guide.pdf
For more fraud and security tips, access our Security Matters resource page.
©Oregon Pacific Bank – 2026
