Business Email Compromise Market

The global Business Email Compromise Market was valued at USD 1.2 Billion in 2022 and is projected to reach a value of USD 4.4 Billion by 2030 at a CAGR (Compound Annual Growth Rate) of 20.5% between 2023 and 2030.

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BEC is a sort of email cybercrime scam in which an attacker attempts to defraud a business. This is a developing issue that affects enterprises of all sizes and industries all around the world. Just 1% of phishing efforts are done by phone, while the remaining 3% are committed via rogue websites. The global Business Email Compromise market is expected to grow significantly during the forecast period. Factors such as the increasing scope of Business Email Compromise scams and spear phishing assaults, as well as the increased use of mobile devices, internet penetration, and cloud deployment methods, are driving market revenue growth. Furthermore, substantial financial losses due to Business Email Compromise crimes boost market revenue growth.

The Federal Bureau of Investigation (FBI) believes that attempted and actual losses from BEC scams reached more than USD 43 billion globally between June 2016 and December 2022. The market will rise during the forecast period because of the rapidly expanding adoption of technologies like ML and AI in BEC solutions. In a BEC scam, attackers pose as members of the victim's faith to deceive people into making fictitious financial transactions. BEC schemes include gift card fraud, money redirection, and provider invoicing fraud. Market participants employ AI/ML skills to examine each email answer to combat BEC scams. Alternatives to BEC detection enabled by ML/AI can identify and stop email fraud risks to prevent significant financial losses. Organizations can recognize and stop BEC and phishing attempts against a corporation with the help of AI and machine learning technology.

Increased cooperation between the major actors is crucial for introducing solutions safeguarding the BEC platform against cyber danger. For instance, Mimecast Limited announced a significant API connection with Humio, a CrowdStrike Company, in August 2021. Humio is the only backup and recovery technology that delivers full detectability for all video content logs in real-time and at scale. The ideal implementation is to deliver advanced threat recognition, exploration, and hunting capabilities in addition to email-based threat intelligence. The fastest-growing cloud email security provider, Avanan, was also purchased by Check Point Software Technologies Ltd. in August 2021. The highest level of security is provided by Avanan technology for emails and SaaS collaborative work suites.

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Economic Insights

No formal notification has been issued by any government body regarding recessive circumstances. Reducing financial demands that have not shown growth for an extended period is considered a recession. A recession is possible if the gross domestic product's annual growth rate falls into negative territory for two consecutive quarters. The economy of the United States has contracted during the last two quarters, suffering a loss of 1.6% in the first month and 0.6% in the second month. These losses were recovered by the third quarter of 2022, when the percentage rose to 2.9% from its previous level of 2.4%. Because the confrontation between Russia and Ukraine has dragged on for so long, the entire economy has been forced to deal with the jolts of steadily increasing electricity costs. There are rumblings that the Group of Seven (G7), the European Union (EU), and its most recent partners may begin to impose their sanctions on the Russian economy.

Top Market Trends

1. Rising Number of Phishing Attacks: Compromises in the financial supply chain are a recent development in the business. Abnormal Security, the leading AI-based cloud-native email security platform, announces the publication of new research demonstrating a rising trend in financial supply chain breaches. Threat actors are impersonating vendors more frequently than ever before. In January 2022, Business Email Compromise attacks impersonating external third parties first surpassed those impersonating internal individuals, and they have since surpassed traditional internal impersonations every month. 60% of attacks in May 2022 were impersonations, according to Abnormal, which is a 30% increase in third-party impersonation year over year.

2. Rising Usage from the Healthcare Sector: Improving patient services is a continuing goal for the healthcare industry. Clinics and hospitals must evaluate and manage risks related to patient safety, federal rules, and medical errors while providing the best care to patients and staff. The black market price of a medical record is about USD 429, making the healthcare industry a valuable target for ransomware, APTs, and malware assaults. To speed up the process, BEC solutions have become a viable option for addressing problems, including data security, patient safety, and increased productivity. Fraudsters have been posing as representatives of the World Health Organization (WHO) and the Centers for Disease Control in phishing emails during the COVID-19 epidemic (CDC).

Market Segmentation

The global Business Email Compromise market can be categorized on the following: Offering, Deployment, Vertical, Organization Size, and Region. Based on Offering, the market can be categorized into Solutions and Services. Furthermore, based on Deployment, the market can be segmented across Cloud and On-Premise. In Addition, based on Vertical, the market can be further split into BFSI, Government, IT, Energy & Utilities, Manufacturing, Retail & E-Commerce, Healthcare, and Other Verticals. Additionally, based on the Organization Size, the market can be fragmented across SMEs and Large Enterprises. Likewise, based on Region, the market is segmented into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa.

Based on Offerings

The solution to Account for the Largest Market Share due to the Increasing Integration of ML and AI

The global Business Email Compromise market will dominate the solutions segment during the forecast period. Using BEC solutions has several advantages, including recognizing numerous BEC tactics and the dynamic detection and blocking of various corporate email infiltration types. Using fictitious supplier domains and compromised supplier accounts, notifying recipients of the source of emails, tagging any external emails, assessing the urgency of emails by looking at their headers, sender's IPs, reputations, and other data, implementing advanced BEC defense, using a detection engine based on ML that learns in real-time and looks at each component of communications, and implementing email authentication standards like SPF, DMKIM, and DMARC are also included in this. The service segment will grow with the fastest-growing CAGR during the forecast period. Additionally, they aid in identifying the compromise window, look at the attacker's activity on the account to see if other accounts were also infiltrated, evaluate data that has been viewed to determine the quantity of sensitive information at risk, and recommend new security precautions.

Based on Deployment

On-Premise to Dominate Largest Revenue due to Convenience

The global Business Email Compromise market will dominate the on-premise segment. The more traditional option is on-premises, in which emails are sent, received, and archived on real servers located on-premises. These servers are frequently owned and run by the domain owner. In governmental organizations, a server handled inside is preferred over a server administered outside. This is particularly true for larger businesses or organizations with serious security issues, especially if this internal server is largely on-site. Cloud deployment will grow with the fastest-growing CAGR during the forecast period. While using cloud email, users effectively lease server space from a third-party cloud email provider rather than owning or maintaining their servers. Because it typically costs less to operate, is scalable, requires less maintenance, and enables flexible accessibility, businesses find it appealing.

Based on Vertical

BSFI to Dominate Largest Market Share Due to Excessive Protection Against Hackers

During the forecast period, the BSFI segment will account for the largest global Business Email Compromise market share. A successful callback procedure can help stop these scams in their tracks. Business Email Compromise is still a common technique competent hackers use to steal substantial sums of money from businesses. New payment requests, requests to open new bank accounts, modifications to payment instructions, and changes to contact information all require a call from an employee, typically a member of the payments team. Any losses arising from payments made using the security credentials of authorized users or those of other people with designated transaction authorization are the responsibility of commercial banking clients. The government segment will grow with the fastest-growing CAGR during the forecast period. Targeting State, Local, Tribal, and Territorial (SLTT) governments is a popular strategy used by Business Email Compromise scammers to deceive victims into parting with money, personally identifiable information (PII), or tangible goods or into altering direct deposit information.

Based on Region

North America to Lead Global Sales Due to Rising Number of BEC-related Crimes

The global Business Email Compromise market is expected to be dominated by the region of North America during the forecast period. Factors such as rising BEC-related crimes in this region will contribute to regional growth. For instance, the U.S. Department of Justice announced charges against ten defendants in several states on November 18, 2022, in connection with several Business Email Compromise, money laundering, and wire fraud schemes that were targeted at Medicare, state Medicaid programs, private health insurers, and numerous other targets and resulted in losses totaling more than USD 11.1 million. The majority of the accusations stem from BEC schemes, in which people impersonating business partners are accused of defrauding victims by transferring money from their bank accounts into accounts that they or their accomplices controlled fraudulently using spoofed email addresses, bank account takeovers, and other deceptive strategies to make victims believe they were sending actual payments.

Europe will grow with the fastest-growing CAGR during the forecast period. According to Proofpoint's 2022 State of the Phish report, an email phishing attempt penetrated more than nine out of 10 (91%) UK organizations last year. According to the survey, email-based attacks increased significantly in 2021 compared to 2020.

Competitive Landscape

The global Business Email Compromise market is fragmented, with a few large and medium-sized competitors contributing the vast majority of market revenue. Key firms are implementing various methods, including mergers and acquisitions, strategic partnerships and contracts, and developing, testing, and introducing more effective BEC products.

The key players in the global Business Email Compromise market include - Agari Inc. (U.S.), Armorblox Incorporation (U.S.), Abnormal Security Inc. (U.S.), Area 1 Security Inc. (U.S.), Barracuda Networks Inc. (U.S.), Broadcom Corp. (U.S.), Clearswift GmbH (UK), Cisco Inc. (U.S.), Check Point Inc. (Israel), Fortinet Corp. (U.S.), GreatHorn Inc. (U.S.), Heimdal Security Solutions Company Ltd. (Denmark), IRONSCALES (U.S.), Mimecast Ltd. (UK), Proofpoint Inc. (U.S.), PhishLabs Corp. (U.S.), Trend Micro Inc. (Japan), Tessian Corp. (UK), Terranova Security (Canada), Trustifi Inc. (U.S.), ZeroFox Company (U.S.), Zix Corp. (U.S.) among others.

Recent Market Developments

· May 2022: The company's solution to detect risks, discrepancies consciously, and threats from endless security-related events throughout the system, cloud, ending point, and hybrid information sources, AuDRA (Autonomous Detection & Response Assistant), was made public by LogicHub. The first business to deploy bot-enabled technology to speed up the creation of threat detection events to support security teams and serve as a key enabler is LogicHub.

· June 2021: Proofpoint's Threat Protection Platform debuted Advanced BEC Defence to thwart attempted BEC frauds. It accurately identifies the most complex email fraud attempts using inbound and outbound gateway telemetry, supply chain risk analytics, and API data from cloud productivity platforms.

Segmentation of the Global Business Email Compromise Market