Scam Prevention

BEC and Invoice Fraud in Singapore: How Businesses Are Targeted and What to Look For

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BEC and Invoice Fraud in Singapore: How Businesses Are Targeted and What to Look For

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One Email, S$57.2 Million Lost

In July 2024, a Singapore commodities firm received an email that appeared to

come from a known vendor. The message instructed the firm to update the

vendor's bank account details. The firm complied, transferred the funds, and later

received a late payment notice from the real vendor. The email had been

fraudulent. The loss: S$57.2 million.

This case — reported in the Singapore Police Force's Annual Scams and Cybercrime

Brief for 2024 — is an extreme example of a very common attack type. Business

Email Compromise (BEC) and invoice fraud are among the most financially

damaging fraud categories targeting Singapore businesses, and they are growing

more sophisticated every year. 

Globally, BEC accounted for approximately 73 per cent of all reported cyber

incidents in 2024. The FBI's Internet Crime Complaint Center recorded nearly US$2.7

billion in adjusted BEC losses in 2024 alone, with almost US$8.5 billion lost between

2022 and 2024. BEC volume increased by 15 per cent in 2025 compared to the

previous year. AI-generated BEC emails now account for an estimated 40 per cent

of attempts, making them increasingly difficult to distinguish from genuine

correspondence.

 

What Is Business Email Compromise?

BEC is a fraud technique in which an attacker impersonates a trusted party — a

CEO, a vendor, a finance officer, or a client — to induce a payment or the disclosure

of sensitive information. Unlike mass phishing, BEC is targeted. Attackers research

their victims, identify relationships, and craft messages that reference real business

context.

The most financially damaging variant in Singapore is invoice fraud: the attacker

intercepts or spoofs an email from a legitimate vendor and instructs the victim to

update bank account details before a scheduled payment. The victim pays what

they believe is a legitimate invoice into a fraudulent account. By the time the real

vendor raises the issue, the funds have been moved and are often unrecoverable.

 

How BEC Attacks Work in Practice

Vendor Email Compromise (VEC)

The attacker gains access to a vendor's email account — or creates a lookalike

domain (e.g., vendor-sg.com instead of vendorsg.com) — and sends payment

instruction changes from what appears to be a trusted address. Vendor Email

Compromise attacks rose 66 per cent in the first half of 2024.

CEO Fraud

A message appearing to come from the company's CEO or senior leadership

instructs a finance employee to make an urgent wire transfer, often with framing

that bypasses normal approval processes ('I am in a meeting, please process this

quietly').

Contact Details Swapping

A newer variant involves a fraudster impersonating a corporate finance

department and claiming to be updating official contact information. This is

followed by a fraudulent advisory email containing new banking details,

sometimes preceded by a phone call to the accounting department to build

credibility.

New Employee Targeting

New hires are increasingly targeted because they are unfamiliar with their

colleagues' communication patterns, have not yet established internal

relationships that allow informal verification, and are reluctant to challenge

instructions from apparent seniors.

 

Red Flags: What to Look For

Unexpected request to update bank account details from a known vendor

or supplier

Email address that is slightly different from the usual domain — a

transposed letter, an extra hyphen, or a country-code variant

Urgency framing: the payment must be made today, the usual contact is

unavailable, normal procedures are to be bypassed

Wire transfer request for an unusually large amount from a senior figure via

email only, without a call to confirm

Invoice number, amount, or payment terms that differ slightly from

previous transactions

Grammar or phrasing inconsistencies compared to previous

communications from the same contact

Email received outside of business hours or from a mobile device notation

when the sender typically uses a desktop

Request to process a payment while omitting someone who would

normally be in the approval chain

 

The Verification Protocol: What Businesses Should Do

Independent Verification of Payment Changes

Any instruction to change bank account details for a vendor, supplier, or creditor

must be verified by calling the known contact directly — not via a number provided

in the suspicious email. Use the number from your CRM, from a previous signed

contract, or from the vendor's official website. This single step would have

prevented the S$57.2 million case cited above.

Dual-Approval for Wire Transfers

Implement a two-person approval rule for all wire transfers above a defined

threshold. No single employee should be able to authorise and execute a

significant transfer without a second approval from a different person, through a

separate channel.

Email Authentication

Ensure your organisation's email environment has DMARC, DKIM, and SPF records

configured correctly. These technical controls reduce the ability of fraudsters to

spoof your own domain when targeting your customers or partners. They do not

prevent spoofing of third-party domains, which is why procedural controls remain

essential.

Vendor Verification Before Onboarding

Before adding a new vendor to your payment systems, verify the company's ACRA

registration status on BizFile. For significant supplier relationships, check whether

the company has an independent trust score or business verification credential.

Scam.SG provides a searchable index of ACRA-registered entities with TrustScore

profiles, allowing procurement teams to run a quick legitimacy check before

onboarding a new supplier.

Staff Training

Finance and accounts payable staff are the primary targets of BEC. Regular training

on current BEC tactics, including AI-generated emails that are linguistically

indistinguishable from genuine correspondence, is a requirement rather than an

optional investment. Tabletop simulation exercises where staff receive mock BEC

attempts are more effective than awareness sessions alone.

 

If You Have Been Targeted

If you suspect you have received a BEC attempt, do not respond to the suspicious

email. Report it to your IT security team and to the Singapore Police Force

(police.gov.sg or the SPF hotline). If funds have already been transferred, contact

your bank immediately — the faster a recall request is lodged, the higher the

probability of recovery. SPF's Anti-Scam Command (ASCom) recovered S$140.5

million in 2025 and prevented a further S$348 million in losses through early

intervention.

 

Reducing Your Exposure Through Business Verification

Businesses that are independently verified present a cleaner profile to their

counterparties. When your organisation holds a Scam.SG TrustScore and a

Certificate of Business Authenticity from Data Bureau (Singapore), your clients and

partners have a verifiable basis for trusting your identity. This is particularly relevant

for businesses in trade, financial services, and professional services, where vendor

impersonation is most damaging. Visit www.scam.sg/business to begin

verification.