Cybercrime on the Rise: A $4.2 Billion Blow to U.S. Businesses
When the world switched to a digital-first lifestyle because of COVID‑19, cybercriminals got the perfect playground. The FBI’s Internet Crime Complaint Center (IC3) recorded nearly 792,000 complaints in 2020—almost 70% more than the previous year—bringing the total financial loss to a staggering $4.2 billion.
Business Email Compromise (BEC) Takes the Spotlight
The top culprit behind this spike was Business Email Compromise (BEC), a scheme that tricks companies into sending money to fraudsters through fake emails. BEC and its cousin, Email Account Compromise (EAC), were responsible for $1.8 billion in damage, accounting for 42% of all reported cybercrime losses.
What Makes BEC So Effective?
- Spies take control of legitimate email accounts.
- They impersonate executives, vendors, or partners.
- Employees, still trusting the email, transfer funds.
In the end, the pandemic’s productivity boost could have cost businesses more than anyone imagined. With these numbers, it’s clear that staying alert and modernizing security protocols is no longer optional—it’s essential.
Number of complaints dropped, but total BEC losses rise
What Is a Business Email Compromise (BEC) Scam?
A Business Email Compromise (BEC) is a cunning cyber‑heist that targets both companies and individuals. Imagine a hacker sneaking into a legitimate business email account—picking on it by tricking people or hacking the system—then making the victim unknowingly send money to a fraudulent address.
The 2013 Playbook
Back in 2013, the typical BEC play began by hacking or faking the inboxes of COOs and CFOs. The attackers would send a request that sounded urgent: “Please wire $X to this account.”
Evolving Schemes
- Personal and vendor emails were soon in the mix.
- Lawyers’ emails got spoofed, and victims were asked for W‑2 details.
- Real‑estate firms became targets, and nobody was spared from the demand for massive gift card piles.
- Last year, the tide turned with more BEC complaints pointing to identity theft and funds being funneled into cryptocurrency.
FBI Snapshots
The FBI’s 2020 Internet Crime Report told a surprising story: while the number of BEC complaints fell that year, the total loss leapt $100 million higher. Think of it like a smaller class of students pulling more weight.
Numbers That Count
- 2019: 23,775 complaints, over $1.7 billion stolen.
- 2022: Complaints dropped to 19,369, but losses surged to $1.8 billion.
Bottom line? The threat has not only persisted—it’s getting stronger and more creative. Stay on guard, verify every out-of‑ordinary request, and keep your email defenses tight. If anyone says, “Send that $200,000 straight away,” double‑check before you hit send. Good luck, and keep your inbox safe!
BEC schemes caused bigger losses than other top five frauds combined
Staggering Cybercrime Stats of 2023: Think You’re Safe? Think Again!
Last year saw the Internet Crime Complaint Center (IC3) crunch a record‑breaking 791,790 complaints, raking in a whopping $4.1 billion in losses – that’s almost a 70 % jump from 2019. If you thought holiday shopping was a nightmare, doom‑slayer BEC (Business Email Compromise) schemes were the real villains.
Top‑Terror Series
- Business Email Compromise (BEC) & Enterprise Account Compromise (EAC) – took credit for the majority of the damage, surpassing all other scams combined.
- Romance frauds were not far behind – $600 million worth of heart‑broken victims.
- Investment schemes – $336.5 million lost, a market‑making nightmare.
- Non‑payment/non‑delivery frauds – $265 million vanished, likely due to those “you’re getting this in the next mail” ruses.
- Identity thefts, identity spoofing and personal data breaches – each slipped out with $219.5 million of losses.
The “Phishing Fish” of 2020
Looking back at 2020, the number of phishing complaints topped the charts with 241,342 filings – that’s a solid 30% of all cases. Non‑payment/non‑delivery entries trailed with 108,869 complaints, while extortion, personal data breach, and identity theft came in the next tiers with 76,741, 45,330 and 43,330 complaints respectively. Credit cards? Check. Bank accounts? Double check.
Bottom line—whether you’re a millennial meme‑troller or a Gen‑X investor, cybercriminals are tightening their claws. Stay alert, shred suspicious emails, and remember: click only on the “real” links.
