Executive Summary
Phishing and Business Email Compromise (BEC) attacks are among the most damaging cyber threats facing businesses today. They often work together: phishing is the entry point, and BEC is the endgame. In this guide, we will break down exactly what happens during these attacks, explain why they are so effective, and share practical steps to protect your business using Breach Detection and Response (BDR) and other essential measures.
Introduction
Email is the backbone of modern business communication. It is fast, convenient, and universal. Unfortunately, it is also the number one target for cybercriminals. Every day, thousands of phishing emails land in inboxes worldwide. Many of these attacks do not stop at stealing login details. They escalate into Business Email Compromise, a scam that can cost companies thousands or even millions of pounds.
Understanding the relationship between phishing and BEC is critical. One often leads directly to the other. In this article, we will explain what happens in each attack, step by step, and show you how to keep your business safe.
Phishing vs Business Email Compromise: What’s the Difference?
Before we dive into the details, let’s clear up the confusion:
- Phishing is the initial trick. Attackers send fraudulent emails designed to steal login credentials or sensitive information.
- Business Email Compromise happens after the attacker gains access to a legitimate email account. They use that account to impersonate the victim and trick others into sending money or confidential data.
Think of phishing as the break-in and BEC as the burglary that follows. Phishing opens the door, and BEC empties the safe.
Why These Attacks Are So Dangerous
Phishing and BEC attacks are not just common. They are highly effective. BEC scams cost businesses billions globally every year. Unlike ransomware, which is noisy and disruptive, BEC attacks are quiet and subtle. They rely on trust and familiarity, making them harder to detect.
When an email comes from a genuine account, recipients rarely question it. Attackers exploit this trust, often using urgent language like “Please process this payment today” or “Update these bank details immediately.” The result? Funds are transferred to criminal accounts before anyone realises what has happened.
The Anatomy of a Phishing Attack
Phishing is usually the first step in a much bigger plan. Here’s how it works:
1. The Hook: A Convincing Email
The attacker sends an email that looks genuine. It might appear to come from a trusted supplier, a colleague, or even a senior executive. The message often creates a sense of urgency, such as “Your account will be suspended” or “Please review this invoice immediately.”
These emails are carefully crafted. Attackers often copy logos, use familiar language, and even spoof email addresses so they look legitimate. The goal is simple: make the recipient believe the email is real.
2. The Click: Fake Login Page
The email contains a link to a fake login page that looks identical to Microsoft 365 or your company’s portal. The victim clicks, thinking they are logging in as usual.
3. Credential Harvesting and MFA Token Theft
When the victim enters their username and password, the attacker captures those details instantly. But here is the critical point: MFA is no longer a guaranteed protection. Modern phishing kits can prompt the user for MFA approval and then steal the session token issued when MFA is approved. This gives the attacker full access without needing the password again.
Attackers do not need to be technical geniuses to pull this off. They can rent Phishing-as-a-Service (PhaaS) platforms that automate the entire process. These services are like Netflix for criminals, providing ready-made phishing kits and infrastructure for a monthly fee. https://www.getsupport.co.uk/blog/2025-11/phaas-its-like-netflix-but-for-criminals/.
4. Persistent Access
Once inside, attackers often add their own MFA method to the account. This means even if the legitimate user changes their password, the attacker can still log in.
The Anatomy of a Business Email Compromise Attack
Once inside the account, the attacker moves to phase two:
1. Reconnaissance
The attacker reads emails to learn about payment processes, suppliers, and internal communication styles. They identify high-value targets such as finance teams or senior managers. This stage can last days or even weeks as the attacker gathers intelligence.
2. Impersonation
The attacker sends emails from the compromised account. These messages look completely authentic because they come from a real address. They often set up rules to hide replies and may have ongoing email exchanges with external contacts to build trust. In some cases, they edit inbound emails containing bank details to trick the user into paying an invoice to the wrong account.
3. Financial Fraud
Victims transfer money to the attacker’s account, believing the request is legitimate. In some cases, attackers change invoice details or redirect payroll payments. By the time the fraud is discovered, the money is gone.
4. Pivoting to New Targets
If the attacker cannot find any financial gain, they use the compromised account to send phishing emails to all contacts. This allows them to pivot to new accounts and look for fresh opportunities.
Real-World Example
Imagine this scenario:
Your finance manager receives an email from the CEO’s account asking for an urgent payment to a new supplier. The email is polite but firm: “Please process this today. We are closing a deal and need this settled.” The finance manager checks the sender. It is the CEO’s real email address. No alarm bells ring. The payment is made. Only later do you discover the CEO never sent that email. The account was compromised weeks ago through a phishing attack.
Why These Attacks Work
- Emails look authentic because they come from real accounts.
- Attackers exploit trust and urgency.
- Many businesses lack advanced email security and monitoring.
- Staff often assume internal emails are safe.
How to Prevent Phishing and BEC Attacks
Stopping these attacks requires a mix of technology, training, and process. Here are the essentials:
1. Train Your Team
Human error is the biggest risk. Teach staff how to spot suspicious emails, such as unexpected requests for payment or login details. Regular training and simulated phishing tests can make a huge difference.
2. Use Multi-Factor Authentication (MFA)
Even if attackers steal a password, MFA makes it harder for them to access accounts. For maximum protection, consider phish-resistant MFA such as FIDO2 security keys or certificate-based authentication. These methods cannot be easily bypassed by phishing kits and provide a strong defence against account takeover.
3. Deploy Breach Detection and Response (BDR)
BDR tools monitor for unusual account behaviour, such as logins from unfamiliar locations or sudden changes in email forwarding rules. They alert you before damage occurs.
4. Verify Payment Requests
Always confirm changes to bank details by phone using a known contact number. Never rely solely on email.
5. Regular Security Audits
Keep systems patched and monitored. Outdated software is an easy target for attackers.
The Bottom Line: Stay Ahead of Email Threats
Phishing and Business Email Compromise attacks are not going away. In fact, they are becoming more sophisticated every year. The good news is that with the right mix of technology, training, and processes, you can significantly reduce the risk to your business.
Start with the basics: educate your team, enforce strong authentication, and verify payment requests. Then go further by deploying advanced tools like Breach Detection and Response and adopting phish-resistant MFA. These steps will not only protect your email accounts but also safeguard your reputation and finances.
Cybercriminals thrive on businesses that delay action. Do not wait until you become a statistic. Take proactive steps today and make email security a priority for your organisation.
FAQs
Phishing is about stealing credentials, while BEC uses those credentials to commit fraud.
They are among the most financially damaging cybercrimes worldwide, costing businesses billions each year.
No. Antivirus protects your laptop or endpoint. Phishing is a cloud-based threat targeting your email account. Breach Detection and Response is the equivalent for protecting Microsoft 365 logins as antivirus is for endpoint threats.
BDR monitors for suspicious activity and alerts you before attackers can cause harm.
Absolutely. Attackers often target smaller firms because they have fewer security measures in place.