Skip to content

Email Compromise Explained: How to Protect Your Business

Picture of Brendan Howe
Email Compromise Explained: How to Protect Your Business
7:11


Email compromise costs businesses billions each year. Learn how to prevent business email compromise with Techify’s proven cybersecurity strategies.

Introduction

Email remains the lifeline of business communication. Whether you’re sending contracts, invoices, or quick updates, chances are most of your important work runs through your inbox.

Unfortunately, email is also the #1 target for cybercriminals.

One of the fastest-growing threats today is email compromise. In simple terms, it’s when criminals gain access to or impersonate your email account to trick you, your employees, or your customers. The results can be devastating - companies around the world lose billions of dollars each year to these scams.

At Techify, we specialize in proactive cybersecurity for businesses. In this article, we’ll explain what email compromise is, how it happens, and most importantly, what you can do to protect your business.

 

What is Email Compromise?

Email compromise happens when cybercriminals either steal access to your actual email account or pretend to be youby creating a look-alike account.

There are two common types:

  • Account Takeover – Hackers steal your real username and password, then log in and send fraudulent emails as if they were you.

  • Business Email Compromise (BEC) or Impersonation Attacks – Criminals create fake email addresses that look almost identical to your company’s. For example, swapping an “m” for “rn” in your domain name. They then send emails pretending to be your CEO, finance lead, or supplier.

A typical scenario might be a finance employee receiving an email from what appears to be the CEO, urgently requesting a wire transfer. By the time anyone realizes it’s fake, the money is gone.

How Email Compromise Happens

Attackers use several tactics to carry out email compromise. The most common include:

  1. Phishing Emails
    Fake messages designed to trick you into clicking a malicious link or entering your password into a fake login page.

  2. Weak or Reused Passwords
    If employees reuse the same password across multiple websites, criminals can take any compromised passwords and try them on corporate email accounts.

  3. Lack of Multi-Factor Authentication (MFA)
    Without MFA, an attacker who steals or guesses a password can log in without resistance.

  4. Employee Awareness Gaps
    Many staff don’t know the red flags of phishing or how to confirm suspicious requests.

  5. Unmonitored Accounts
    Attackers often create hidden forwarding rules or log in from unusual places. Without monitoring, these activities can go unnoticed for weeks.

email-compromise-how-it-happens.png

 

Warning Signs of Business Email Compromise

How do you know if your email (or your company’s email) has been compromised? Some of the most common signs include:

  • Receiving unexpected password reset notifications.

  • Colleagues or clients reporting strange requests from “you.”

  • New forwarding rules that automatically send messages outside the organization.

  • Login attempts from unusual locations (for example, overseas when you’re in Toronto).

  • Bounce-back messages for emails you never sent.

If you see these signs, it’s time to act quickly.

The Impact on Your Business

Email compromise is not just an IT issue, it’s a business issue. Here’s why:

  • Financial Loss: Fraudulent transfers and fake invoices can cost thousands, if not millions of dollars (or more)

  • Reputation Damage: Customers may lose trust after receiving suspicious messages from your domain.

  • Compliance Risks: In industries like finance, healthcare, and non-profits, data breaches can bring legal and regulatory penalties.

  • Operational Disruption: IT teams and employees waste valuable hours recovering accounts, cleaning up, and restoring systems.

Even a single compromised account can cost far more than preventative cybersecurity measures ever would. 

3826039

How to Prevent Email Compromise (Best Practices)

The good news is that email compromise is preventable with the right safeguards. Here are the most effective strategies:

  1. Enable Multi-Factor Authentication (MFA) Everywhere
    MFA adds a second layer of protection (such as a mobile app code) so stolen passwords alone aren’t enough for attackers.

  2. Use Strong, Unique Passwords
    Encourage staff to use a password manager to generate and store secure passwords. Never reuse the same password across systems.

  3. Train Employees Regularly
    Ongoing cybersecurity training helps employees recognize phishing attempts and suspicious behavior. Consider simulated phishing tests to build awareness.

  4. Deploy Advanced Email Security Tools
    Use spam filters, anti-phishing protections, and malware scanners to reduce risk before emails even reach inboxes.

  5. Monitor Accounts for Unusual Activity
    Set up alerts for logins from unfamiliar locations or the creation of forwarding rules. Early detection can prevent major damage.

  6. Secure Your Domain with SPF, DKIM, and DMARC
    These authentication protocols make it much harder for attackers to impersonate your company’s email domain.

  7. Have a Clear Incident Response Plan
    If compromise does happen, everyone should know the next steps. This includes resetting passwords, notifying clients, and reporting incidents.


What To Do if You Suspect Email Compromise

If you think your email has been compromised, speed is critical. Here are the immediate steps:

  1. Change Your Password and ensure it’s strong and unique.

  2. Enable or Re-enable MFA right away.

  3. Revoke Active Sessions to sign out any attackers.

  4. Check Forwarding Rules and Permissions for anything suspicious.

  5. Alert Your IT or Security Team and notify anyone who may have received fraudulent emails.

  6. Report the Incident to your email provider and, if financial fraud occurred, to law enforcement.

How Techify Helps Protect Businesses

At Techify, we believe the best defense is a proactive defense. Rather than waiting for a problem to happen, we focus on preventing threats before they ever reach your inbox.

Here’s how we help:

  • Cyber Risk Assessments – Identify weaknesses in your current setup.

  • Advanced Monitoring – Continuous oversight of your Microsoft 365 and email environments.

  • Employee Training – Practical education so your team can spot phishing before it’s too late.

  • Microsoft 365 Security Setup – Ensuring features like MFA, conditional access, and domain authentication are configured properly.

Our clients have seen real results, including saving money, time, and avoiding the financial and reputational risks of a compromised email.

Ready to protect your business? Book your free Cyber Risk Assessment with Techify today.

 

Conclusion

Email compromise is one of the most common and costly cyber threats facing businesses today. The risk is high, but the good news is that it’s preventable. By combining strong passwords, MFA, employee training, and advanced monitoring, you can keep attackers out of your inbox and protect your organization’s bottom line.

Cybercriminals move fast. But, with the right systems, training and precautions, your business can move faster.

Don’t wait until it’s too late. Protect your business now.
, ,