Berks Barrister Winter 2018 - 35

w w w.BERKSBAR.org

THE NUMBERS
The BEC/EAC scam continues to grow, evolve, and target
small, medium, and large businesses. Between January 2015
and December 2016, there was a 2,370% increase in identified
exposed losses. The scam has been reported in all 50 states and in
131 countries. It continues to grow.
Based on the financial data, Asian banks located in China and
Hong Kong remain the primary destinations of fraudulent funds;
however, financial institutions in the United Kingdom have also
been identified as prominent destinations.
The total BEC/EAC incidents reported to the IC3 over the
past few years included over 40,000 incidents amounting to over
$5.2 billion dollars in losses. The majority of the incidents and
losses were U.S. victims.

SCENARIOS OF BEC
There are several common scenarios by which this scam is
perpetrated.
Scenario 1: Business Working with a Foreign Supplier
A business that typically has a longstanding relationship
with a supplier is requested to wire funds for an invoice payment
to an alternate, fraudulent account. Referred to as the "Bogus
Invoice Scheme," "Supplier Swindle," and "Invoice Modification
Scheme."

ATTORNEY DISCIPLINARY
AND ETHICS MATTERS
STATEWIDE PENNSYLVANIA MATTERS
NO CHARGE FOR INITIAL CONSULTATION

Representation,	consultation	and	expert	testimony	in
disciplinary	matters	and	matters	involving	ethical	issues,
bar	admissions	and	the	Rules	of	Professional	Conduct

James C. Schwartzman, Esq.
*	 Chairman,	Judicial	Conduct	Board	of	Pennsylvania
*	 Former	Chairman,	Disciplinary	Board	of	the	Supreme	
Court	of	Pennsylvania
*	 Former	Chairman,	Continuing	Legal	Education	Board	
of	the	Supreme	Court	of	Pennsylvania
*	 Former	Chairman,	Supreme	Court	of	Pennsylvania	
Interest	on	Lawyers	Trust	Account	Board
*	 Former	Federal	Prosecutor
*	 Selected	by	his	peers	as	one	of	the	top	100	Super	Lawyers	
in	PA	and	the	top	100	Super	Lawyers	in	Philadelphia
*	 Named	by	his	peers	as	Best Lawyers in America	2015	
Philadelphia	Ethics	and	Professional	Responsibility	Law	
"Lawyer	of	the	Year,"	and	in	Plaintiffs	and	Defendants	
Legal	Malpractice	Law
111 North Sixth Street * Reading, PA 19601
(215) 751-2863

Scenario 2: Business Executive Receiving or Initiating a
Request for a Wire Transfer
The e-mail accounts of high-level business executives may
be spoofed or hacked. A request for a wire transfer from the
compromised account is made to a second employee within
the company who is typically responsible for processing these
requests. This particular scenario has been referred to as "CEO
Fraud," "Business Executive Scam," "Masquerading," and
"Financial Industry Wire Frauds."
Scenario 3: Business Contacts Receiving Fraudulent
Correspondence through Compromised E-mail
An employee of a business has his or her personal e-mail
hacked.

Founded and operated by an
attorney, Jeffrey A. Franklin,
Esq., for lawyers, law firms,
and bar associations.
10% off Audits code: BB

610-314-7130 * Info@BrightLineTechSolutions.com
www.BrightLineTechSolutions.com

Buying or Selling?

Better Call Bonnie!

Scenario 4: Business Executive and Attorney Impersonation
Victims report being contacted by fraudsters who typically
identify themselves as lawyers or representatives of law firms and
claim to be handling confidential or time-sensitive matters. This
contact may be made via either phone or e-mail. Victims may be
pressured by the fraudster to act quickly or secretly in handling
Continued on page 36

* Audits
* Policies
* Cybersecurity
* Cyberinsurance
* Telecommunications
* Social media
* Marketing
* Practice management
* Billing and Accounting
* Dictation
* Document management
* Computer hardware
* Computer software
* Networking ...and More

Each Office Independently Owned and Operated

1290 BROADCASTING ROAD
WYOMISSING, PA 19610

ESHELMAN HAS ...

 Experience  Energy
 Enthusiasm
 Education (Legal Background)

Bonnie Eshelman
REALTOR®, ABR, CSP, SCES®, CDPE

BEshelman@GoBerksCounty.com

OFFICE: 610-670-2770
CELL: 610-207-4716
www.BonnieSellsBerks.com
Winter 2018 | 35
http://www.berksbar.com/ http://www.BrightLineTechSolutions.com http://www.BonnieSellsBerks.com
Berks Barrister Winter 2018

Table of Contents for the Digital Edition of Berks Barrister Winter 2018
