Business Email Compromise (BEC) has become one of the most costly cybercrimes today. The FBI’s Internet Crime Complaint Center (IC3) reports that between October 2013 and December 
2023, organizations suffered nearly $56 billion in losses from approximately 305,000 incidents. Increasingly, gift cards are a key tool used in these scams. Understanding how BEC schemes operate is essential to protecting your business.
Why Gift Cards are a Target
BEC scammers use a combination of social engineering and computer intrusion to manipulate employees into transferring funds. While BEC schemes take many forms, they often involve cybercriminals impersonating senior executives and sending requests that seem routine — such as wiring money or writing checks.
Recently, gift cards have become a favored method for these scams. Unlike wire transfers, which are subject to strict security protocols, gift card purchases and transactions face minimal scrutiny. Gift cards are quick and easy to buy, making them an attractive option for fraudsters.
How These Scams Work
In a typical scheme, an employee might receive an email from the “CEO” requesting that gift cards be purchased for a vendor and mailed immediately. The scammer may promise reimbursement and add pressure by asking for expedited shipping.
Another common variation involves the fraudster asking employees to email gift card details — including security codes — or send photos of the front and back of each card. Digital gift cards make the process even faster: scammers instruct employees to purchase cards online and send the card numbers, PINs, and security codes directly via email, allowing them to drain the funds almost instantly.
The Role of AI in BEC Attacks
Artificial Intelligence (AI) has made BEC attacks more sophisticated. Fraudsters now use AI tools to:
- Access and analyze real communications, such as emails, blog posts, or employee memos.
- Mimic an executive’s speech patterns and writing style.
- Replicate business behaviors to appear authentic.
This enables scammers to send highly convincing, AI-generated emails that look and sound like they’re from senior leadership. Combined with urgent requests and relatively small dollar amounts, these schemes are difficult to detect and easy to execute.
Steps to Protect your Business
Even sophisticated BEC attacks can be prevented with the right approach. Here’s how you can fight back:
- Fraud Awareness Training: Educate employees on BEC warning signs, such as urgent or secretive requests, unusual payment methods, and suspicious email addresses with errors or misspellings.
- Verification Procedures: Require employees to confirm any financial requests — especially those involving gift cards — with the sender directly via phone or in person. Establish clear reporting protocols for suspected fraudulent emails.
- Technical Safeguards: Use tools that verify incoming email authenticity. Partner with cybersecurity professionals to assess your IT environment and implement solutions to filter out malicious messages. Keep your software and systems up to date to protect against evolving threats.
Addressing Both Technology and Human Risks
BEC scams exploit gaps in both technology and human judgment. A comprehensive approach that combines training, verification, and advanced security tools can help safeguard your business.
If you need assistance strengthening your internal controls and preventing BEC fraud, contact us today.
