At Smart Computers and Consulting, we've observed a worrying increase in incidents involving direct deposit business email compromise (BEC)scams, as reported by numerous organizations. These aren't your typical phishing attempts. Direct deposit or payroll diversion scams are meticulously tailored to each organization they target. Cybercriminals impersonate anemployee by creating an email address in the employee’s name and manipulating the display name to appear legitimate.

These fraudulent emails are often directed at payroll or human resources departments, requesting changes to direct deposit information.In some instances, attackers have even located and filled out an organization's direct deposit change form, attaching it to their deceptive emails. The goal? To reroute an employee’s salary to a bank account they control. While some of these malicious emails may exhibit obvious errors in spelling and grammar, making them easier to spot, others are sophisticated and challenging to distinguish from legitimate communications. These scams are ongoing and may peak at specific times of the year, notably when educators are preparing for the new school year, making school districts a prime target.

Protective Measures and Recommendations

To safeguard against these sophisticated scams, Smart Computers and Consulting strongly recommend that organizations adopt stringent procedures for authorizing changes to direct deposit information. This should include requiring dual levels of approval and obtaining verbal confirmation from the employee making the request. We also urge individuals to exercise caution with email communications, even those appearing to come from known contacts. Verifying requests through a direct phone call to the sender is a prudent step to confirm their authenticity.

To safeguard against direct deposit business email compromise (BEC) scams, organizations should adopt stringent procedures for authorizing changes to direct deposit information.

Best Practices:

• Dual levels of approval: Require dual levels of approval for changes to direct deposit information.
• Verbal confirmation: Obtain a verbal confirmation from the employee or business making the request.
• Verify requests: Verify requests through a direct phone call to the sender to confirm their authenticity.
• Stay vigilant: Stay vigilant for common signs of fraudulent emails, such as display name spoofing.
• Awareness and education: Awareness and education on these tactics are vital defenses against falling victim to these scams.
• Maintaining Security Software: Maintaining updated anti-virus software, firewalls, and email filters to reduce the risk of phishing and social engineering attacks.
• Report it: File a complaint at IC3.GOV. Reporting a crime makes the community safer.

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Stay informed and protect your organization from these targeted email threats. For more insights and support on enhancing your cybersecurity measures, reach out to Smart Computers and Consulting, your trusted partner in safeguarding small and medium businesses and school districts.

Other Resources:

CISA.ORG - Email Phishing Scams

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