Your company’s controller receives an email instruction from your CEO to wire funds to complete a time-sensitive and confidential deal–seems like a clear directive to execute, but it’s not. It’s an increasingly common scam known as the “Business E-mail Compromise” (BEC).
Randy is engaged by public and private companies, and by audit and special committees of boards of directors, to conduct internal investigations. He also represents companies and individuals in connection with government investigations, as well as parallel civil and administrative proceedings. Randy also has extensive experience defending consumer class actions and in cases involving securities fraud, health care fraud, money laundering, the Telephone Consumer Protection Act and the False Claims Act.
Randy has first and second chaired seven trials to verdict, and has briefed and argued appeals before the Ninth Circuit. He advises a diverse group of technology, banking, pharmaceutical, health care, and emerging company clients in class actions, regulatory compliance matters and civil and criminal litigation.
Posts by: Randy Luskey
In March, we reported on the Business E-mail Compromise (BEC) scam where criminals target employees responsible for wiring company money, and trick them into wiring money under false pretenses to fraudulent accounts controlled by the criminals. In recent months, the FBI has identified a new trend in the BEC scam, and a similar emerging scheme that primarily targets employees from spoofed email accounts (E-Mail Account Compromise or EAC). The FBI estimates that these scams have claimed over 8,000 victims and resulted in losses totaling nearly $800 million since October 2013. This reflects a 4x increase from our initial report in March, when the figures attributable to this scam stood at roughly 2,000 victims and $215 million in losses.
Companies should take notice of a new fraud scheme that has been making the rounds, targeting businesses that regularly make wire transfers. Known as the “Business E-mail Compromise,” or BEC, this scam targets employees responsible for wiring money, instructing them under false pretenses to wire large sums to fraudulent accounts. The Federal Bureau of Investigation estimates that the scam has claimed over 2,000 victims and resulted in losses totaling nearly $215 million since October 2013.