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.
Walt is a seasoned trial lawyer and the leader of Orrick's White Collar Criminal Defense practice. His practice focuses on complex business litigation, white collar criminal defense and crisis management.
He represents companies and individuals in connection with criminal and regulatory investigations, as well as parallel civil and administrative litigation and proceedings. Over the past 25 years, Walt has been on the front lines of many of the most significant government investigations, prosecutions and litigation. He has extensive experience in cases involving securities fraud, antitrust offenses, the Foreign Corrupt Practices Act, healthcare fraud, trade secret misappropriation and government fraud. Walt also is engaged routinely by public and private companies, and by audit and special committees of boards of directors, to conduct internal investigations.
Posts by: Walter Brown
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.