Police have warned about an increase of attacks on Bermuda-based businesses in a “sophisticated scam” known as the Business E-mail Compromise.

Scammers are targeting employees who perform regular wire transfers, the Bermuda Police Service advised today.

The offenders are said to be using tools to make the e-mail appear that it was initiated by the executive, or spoofed, or registering a domain similar to the targeted e-mail account.

Upon success, the payment officer then receives an authentic looking e-mail from the executive, authorising the immediate wire payment to be sent overseas, the majority to China and Hong Kong.

Recent statistics released by the Federal Bureau of Investigation state that the scam has to date resulted in estimated losses of $3.1 billion to businesses, many of whom may also be susceptible to malware and ransomware.

Detective Chief Inspector Nicholas Pedro of the Organised and Economic Crime Department stated: “Bermuda has already seen a number of local businesses having encountered the Business Email Compromise scam, some of whom have experienced substantial financial loss.

“I would encourage local businesses to ensure that they have adequate internal processes in place and to also verify the legitimacy of all urgent overseas wire transfers prior to sending.”

In the event of a loss, telephone the Organised and Economic Crime Department on 247-1757.