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The SmartVM® Recap: BEC Scams & Sanctioned Entities

Real headlines that SmartVM® protects against

Recent headlines compiled below show the scope and financial impact of sophisticated procure-to-pay fraud threats and supplier risk faced by today’s procure-to-pay teams.

According to the FBI, business email compromise (BEC) losses have doubled year-over-year and now total more than $26 billion globally. And BEC scams aren’t the only risk companies face. Almost daily, companies are added to sanctions lists like those of OFAC, Interpol or the FBI. If your firm unknowingly does business with one, you can incur significant fines and the kind of negative publicity no one wants.    

To keep companies safe and out of headlines, APEX Analytix’s SmartVM® validates customer and supplier data in real time using over 650 government, regulatory and authoritative third-party data sources.

IN THE NEWS: Business Email Compromise

  • Toyota Parts Supplier Hit by $37 Million Email Scam: In a classic BEC scam, a fraudster infiltrated a company’s systems and learned who had financial authority. Armed with that critical information, the fraudster acted as a legitimate vendor and requested a change to the bank account being paid. One change request and $37 million gone.
  • Portland Public Schools Paid $2.9 Million to a Fraudulent Account: The payables team for Portland Public Schools thought they were paying a contractor for work on school construction projects. Instead, the payment went to a bank account set up by a fraudster using a name that closely resembled that of the contractor. Luckily, the fraud was discovered in time to recover the money.
  • Fraudsters Used AI to Mimic CEO’s Voice and Steal $240 Thousand: If your boss called and asked you to transfer money to a supplier, would you do it? Most people would. But beware. AI technology is now being used to trick you by imitating your boss’s voice. This fraud was uncovered only because the fraudsters got greedy. They tried to have multiple payments made in one day, which created concern about the legitimacy of the disbursements.
  • 281 Arrested in Email Attacks on Key Employees: A fraud sweep code named “Operation reWired” targeted scam artists said to be lining their pockets with hijacked wire transfers. Security researchers said 99% of such attacks exploit the human factor—a person somewhere in the chain who clicks on a link, opens an attachment and/or falls for a scam.

Get Protected Against BEC Scams: APEX Analytix’s SmartVM® can automatically validate bank account ownership in real time during onboarding and any time a change is requested. BEC scammers are smart. But SmartVM is smarter with automated protections that can eliminate the chance of someone hijacking your payments.

 

IN THE NEWS: Sanctioned Entities

  • Shipping Companies Sanctioned by US Treasury: The US recently sanctioned several Taiwanese and Hong Kong shipping companies for helping North Korea evade international restrictions on its petroleum trade. The Treasury Department alleges that North Korea uses ship-to-ship transfers at sea to evade United Nations restrictions and receive deliveries of refined petroleum.
  • US Adds Iranian Shipping Network to Sanctions List: In a similar move, the US Treasury Department sanctioned an Iranian shipping network in order to increase economic pressure on Iran. The shipping network is allegedly controlled by Iran’s Revolutionary Guard and ships oil worth hundreds of millions of dollars.

Get Protected Against Sanctioned Entities: APEX Analytix SmartVM® can identify sanctioned companies in real time—comparing your vendor master databases to ever-changing lists maintained by authorities. You get immediate alerts if any of the companies you do business with are added to government watchlists—avoiding costly fines and protecting your corporate reputation.

More from APEX Analytix

The Payment Fraud Report: Dive into real-world payment fraud cases involving BEC scams, supplier spoofing and insider collusion to learn which solution will protect your company against every type of payment fraud threat.

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