A Message to Bank and Financial Institution Fraud and AML Investigation Teams:
In the face of rising Business Email Compromise ( BEC scams ), it’s time to reassess how we guide victims. Traditionally, financial institutions have directed customers to report these crimes to the FBI’s IC3.gov portal. However, recent data suggests this approach to BEC scams may be insufficient.
The Reality of BEC Scam Resolution Rates
Despite the FBI’s Internet Crime Complaint Center (IC3) reporting a “71% success rate” in their 2023 report, a closer analysis reveals a different picture:
- Only 14% of reported BEC scam incidents (3,008 out of 21,489) were referred to the IC3 Recovery Asset Team (RAT).
- The actual recovery rate may be as low as 1.8% when considering all reported cases.
- These statistics don’t account for unreported incidents, which experts estimate could be up to 90% of all cybercrimes.
Here’s how poor the starts really are in graphical format:
FBI reported RAT Success
Adjusted RAT Success
Corrected RAT resolution statistics
The above chart is based on assumptions we do not have sufficient data to prove, but even if we are our an order of magnitude, we do not see how the FBI BEC scam resolution rates can come close to what they are reported.
The Critical Role of Immediate Action on BEC Scams
Time is of the essence in BEC scams. Funds can be moved and laundered within hours, making traditional law enforcement responses often too slow to be effective.
A Call to Action for Financial Institutions
We urge you to reconsider your standard practice:
- Provide Realistic Expectations: Inform your customers about the low resolution rates through traditional channels.
- Recommend Specialized Help: For significant losses, advise engaging a specialized first-response private cybercrime investigation agency like Rexxfield.
- Emphasize Speed: Highlight the importance of immediate action to increase the chances of fund recovery from a BEC scam.
Why Choose Rexxfield for BEC Scam Investigations?
- Rapid Response: We initiate investigations immediately, crucial in the first hours after a BEC scam attack.
- Specialized Expertise: Our team includes experts in tracing and freezing funds across various financial systems, including cryptocurrency.
- Global Reach: We collaborate with banks, cryptocurrency exchanges, and international law enforcement agencies and the world’s best crypto tracing platforms (official Chainalysis partners since 2023) .
- Proven Track Record: Our recovery rates significantly outperform traditional law enforcement channels.
Act Now to Protect Your Customers
By recommending immediate engagement with specialized agencies like Rexxfield, you’re offering your customers the best chance at recovery after a BEC compromize. This approach not only helps victims but also strengthens your institution’s commitment to customer protection.
Don’t let your customers become another statistic. When a BEC scammer strikes, every minute counts. Direct them to professional help that can make a real difference.
Contact Rexxfield Now for more information on how we can assist your institution and your customers in the fight against BEC scams.
- *Rewritten from a longer post by Rexxfield’s founder, Michael Roberts for crime fighting charity PICDO. Used with permission. For the full article, please refer to https://picdo.substack.com/p/logical-fallacies-in-ic3-reports.
