Business Email Compromise Scam Recovery
Business email compromise (BEC) is a form of financial fraud in which criminals use compromised email accounts, impersonation, spoofed communications, or social engineering to cause individuals or businesses to send money to an account controlled by the fraudster.
A BEC scam may begin with a compromised employee account, a fraudulent message appearing to come from a company executive, a fake vendor invoice, or instructions to change the bank account used for a legitimate payment. Once the victim sends the funds, the money may quickly move through additional accounts or financial institutions.
Kingswell Law assists individuals and businesses investigating and pursuing recovery of funds lost through business email compromise, fraudulent wire transfers, invoice fraud, executive impersonation, and related scams.
Because time can be critical after a fraudulent transfer, our approach focuses on preserving evidence, identifying where the funds were sent, coordinating with relevant financial institutions and investigators, and evaluating the legal remedies that may be available.
Common Business Email Compromise Scams
BEC fraud can take several forms. The method used by the scammer often determines what evidence should be preserved and what recovery options should be investigated.
- Fraudulent vendor invoices: Criminals impersonate a legitimate supplier and provide altered payment instructions.
- CEO or executive impersonation: A scammer impersonates a company executive and instructs an employee to make an urgent payment.
- Payment rerouting: A compromised email account is used to redirect a legitimate payment to a fraudulent bank account.
- Compromised business email accounts: Criminals obtain access to an employee or executive email account and use it to conduct or facilitate fraud.
- Email spoofing and social engineering: Fraudsters create convincing communications designed to make a recipient believe that payment instructions are legitimate.
- Attorney, client, or transaction impersonation: Criminals impersonate participants in a transaction in order to redirect funds.
What Happens After a BEC Fraud?
Once fraudulent funds have been transferred, the money may be moved rapidly between accounts or financial institutions. That can make early investigation and evidence preservation important.
Depending on the circumstances, a recovery investigation may examine the original payment, receiving account information, subsequent transfers, email communications, transaction records, and other available evidence to determine where the funds went and who may be connected to the fraud.
Kingswell Law works with appropriate professionals and financial institutions as necessary to investigate the circumstances surrounding the loss and determine what legal action may be available.
- Investigation of fraudulent wire transfers
- Identification of receiving and intermediary accounts
- Subpoenas and discovery to identify responsible parties
- Emergency legal remedies where appropriate
- Coordination with banks and payment providers
- Financial and digital evidence preservation
- Insurance claim evaluation
- Civil litigation and recovery strategies
What to Do After a Business Email Compromise
If you discover that money has been sent because of a BEC scam, avoid deleting emails, messages, invoices, payment instructions, or other communications connected with the transaction.
Depending on the circumstances, important early steps may include:
- Contacting the financial institution involved in the transfer.
- Reporting the fraudulent transaction and preserving the relevant transaction records.
- Preserving the emails, attachments, invoices, account information, and other communications used by the scammer.
- Determining the account and financial institution to which the funds were sent.
- Reviewing whether additional payments or transfers may have been affected.
- Obtaining legal advice about potential recovery and litigation options.
The sooner the circumstances are documented and investigated, the more information may be available to support a recovery strategy.
Related Fraud Recovery Resources
Business email compromise frequently involves unauthorized wire transfers and other forms of payment fraud. Learn more about related recovery issues:
Notable Case: Recovered over $220,000 misdirected through a fraudulent invoice sent via a compromised vendor email account.
Business Email Compromise FAQs
What is a business email compromise scam?
A business email compromise scam is a form of fraud in which criminals use compromised email accounts, impersonation, spoofed communications, or social engineering to cause a victim to send money or sensitive information to an account controlled by the fraudster.
Can money lost through a BEC scam be recovered?
Recovery depends on the circumstances, including how the fraud occurred, how quickly it was reported, where the funds were sent, whether the receiving accounts can be identified, and what legal remedies may be available. Legal counsel can help investigate the transaction and pursue appropriate recovery options.
What should I do after a fraudulent wire transfer?
Act quickly. Depending on the circumstances, immediate steps may include contacting the sending financial institution, reporting the fraudulent transaction, preserving emails and other evidence, identifying the receiving account, and obtaining legal assistance to evaluate available recovery options.
What types of BEC scams does Kingswell Law handle?
Our BEC practice includes matters involving fraudulent vendor invoices, CEO and executive impersonation, compromised business email accounts, payment rerouting, email spoofing, unauthorized wire transfers, and related financial fraud.
Can a lawyer trace money stolen through a BEC scam?
Depending on the transaction and available records, attorneys may investigate the movement of funds through banking records, payment records, communications, account information, subpoenas, and other evidence. The appropriate strategy depends on the facts of each case.
Lost Money to a Business Email Compromise Scam?
If you or your business has lost money because of a fraudulent email, invoice, impersonation scheme, or unauthorized wire transfer, Kingswell Law can evaluate the circumstances and discuss potential recovery options.
Request a confidential consultation to discuss your situation.
