The U.S. Attorney’s Office recently seized about $3.5 million that was stolen through a scam called “Business Email Compromise” (BEC). This scam tricked a business into sending millions of dollars to fraudsters who used fake emails to steal the money. The seizure was part of a quick investigation led by the U.S. government and local law enforcement. Let’s break down what happened and how the scam worked.
What is Business Email Compromise (BEC)?
Business Email Compromise is a type of scam where criminals use fake emails to trick businesses or people into sending money to them. The scam often involves a criminal pretending to be someone the victim knows or trusts, like a business partner or contractor. The scammer sends an email that looks like it’s from a legitimate source, but it’s actually fake.
The fake email may look almost identical to the real one, but there is usually a small difference that most people wouldn’t notice. For example, a criminal might change just one letter or use a very similar name. Because the victim thinks they’re dealing with someone they know, they might follow the instructions in the email without double-checking.
In this case, the scammers impersonated a general contractor involved in a real business transaction. They sent an email to the company, telling them to make a payment, but they changed the payment details. Instead of sending the money to the real contractor, the business sent it to the fraudster’s bank account.
How Did the Investigation Unfold?
The scam started in mid-2024, when a company based in Connecticut became a victim of Business Email Compromise. The criminals sent an email that appeared to be from the contractor the company was working with. The email told the business to send a payment to a new account. The company followed the instructions and transferred approximately $5.4 million to the fraudster’s account.
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However, the business quickly realized something was wrong and reported the scam to the police. Law enforcement, including Homeland Security Investigations (HSI) and the Westport Police Department, jumped into action. They tracked the stolen funds across nine different bank accounts and managed to freeze the money before it could disappear.
Through a legal process called “asset forfeiture,” the U.S. Attorney’s Office worked to seize the stolen funds. This allows the government to take control of the money and, if the case is successful, return it to the victim business. In this case, about $3.5 million of the stolen money was recovered. The investigation continues, as law enforcement works to bring the criminals responsible for the scam to justice.
How to Protect Yourself from Email Scams
Business Email Compromise scams are becoming more common and harder to detect. Fraudsters are using increasingly sophisticated methods to trick people into sending them money. Fortunately, there are ways businesses and individuals can protect themselves from falling victim to this type of scam.
First, it’s important to always double-check email addresses carefully. Scammers often use addresses that look similar to legitimate ones, but with small differences. Be cautious when you receive emails asking for money or changes in payment instructions. Before making any payments, verify the request with the person or company directly, either by calling them or meeting in person.
If you think you’ve fallen for a Business Email Compromise scam, it’s crucial to act quickly. Contact your bank immediately to try and reverse the payment. You should also reach out to local law enforcement and report the crime. The FBI’s Internet Crime Complaint Center (IC3) is another place where you can report scams and get information about other types of cybercrime.
While Business Email Compromise scams can be tricky to detect, knowing how they work and taking steps to verify information can help prevent big losses. The government and law enforcement agencies are working hard to track down and stop these criminals, but businesses and individuals also need to be vigilant to avoid falling victim to these scams.
