Email Scams Targeting Businesses: How to Spot and Stop Them

For many businesses, email is the backbone of daily operations. But it’s also one of the most common entry points for cybercriminals. From fake invoices to impersonated executives, email scams are becoming more sophisticated—and more costly. According to the FBI, business email compromise (BEC) schemes have caused billions in losses over the past few years, with small and mid-sized businesses disproportionately affected.

At Midwest Bank, we’re committed to helping local businesses protect their finances, data, and reputations. Here’s what you need to know to stay ahead of business email scams.

Common Email Scams Targeting Businesses

Business Email Compromise (BEC)

Fraudsters impersonate a business owner, executive, or vendor and ask an employee to send a payment or share confidential information. These messages often look strikingly legitimate.

Common signs:

• Sudden or urgent requests to wire money
• Slight changes in email addresses (e.g., “.co” instead of “.com”)
• Requests for confidentiality (“Don’t tell anyone else until this is done”)

Invoice & Payment Fraud

Scammers pose as existing vendors and send a fake invoice or request an update to payment details.

Watch for:

• Vendor emails that seem “off” in tone or timing
• New banking details that don’t match past payments
• Invoices that don’t match purchase orders

Phishing Attacks with Malicious Links

These emails try to trick recipients into clicking a link or downloading a file that installs malware or steals login credentials.

Red flags:

• Unexpected attachments
• Threatening language (“Your account will be closed today!”)
• Links that don’t match the sender’s domain when hovered over

Payroll Redirect Scams

An employee receives an email—appearing to be from HR or a supervisor—requesting a change to direct deposit details.

Key indicators:

• Requests made outside normal HR processes
• Personal banking info being exchanged via email
• Misspellings or inconsistent formatting

How to Spot a Scam Before It Hurts Your Business

• Check the sender’s email carefully: Fraudsters often use look‑alike addresses or subtle misspellings.
• Hover before you click: Preview links to ensure they point to legitimate websites.
• Trust your gut if something feels urgent or secretive: Cybercriminals rely on pressure and fear to prevent you from double-checking.
• Look for inconsistencies in formatting, tone, or grammar: Even sophisticated scams often include subtle mistakes.
• Confirm payment or account changes through a second channel: Phone calls save businesses thousands of dollars every year.

Practical Tips for Employees

• Slow down before responding to unusual requests: Most scams rely on rushing you. Take a moment to verify anything that feels unusual.
• Never share passwords via email: No legitimate organization will ask for them.
• Report suspicious emails immediately: Early detection can prevent business-wide breaches.
• Use strong, unique passwords and enable multi-factor authentication (MFA): MFA adds a critical extra layer of protection, especially for email accounts.
• Keep devices and software updated: Outdated systems leave your business vulnerable to known exploits.

Practical Tips for Business Owners & Managers

• Establish clear payment verification protocols: Require confirmation—by phone or in person—for wires, ACH changes, and large invoices.
• Train your team regularly: Employees are your first line of defense. Regular refresher training keeps them alert.
• Limit administrative privileges: Only give elevated access to those who truly need it.
• Adopt secure email solutions: Features like encryption, spam filtering, and MFA greatly reduce risk.
• Create a response plan: Know who to contact, how to freeze accounts, and how to report fraud quickly.

What To Do If Your Business Is Targeted

If you believe your business has fallen victim to a scam:

• Contact your bank immediately, the faster a fraudulent transaction is reported, the better the chances of recovery.
• Notify your IT provider to secure accounts and stop further intrusions.
• Report the incident to the FBI’s Internet Crime Complaint Center (IC3.gov).
• Review internal processes to prevent similar events in the future.

Midwest Bank Is Here to Help

Protecting your business is a partnership. Our team can assist with secure banking tools, fraud prevention resources, and personalized guidance to help keep your operations safe.

If you’d like to review your account security or provide fraud-prevention training for your staff, reach out to your local Midwest Bank branch—we’re here to support you every step of the way.