Global Business Email Compromise (BEC) Market Report 2022: Growing Incidents of BEC Scams and Spear-phishing Attacks & Huge Financial Loss Due to BEC Crimes - Forecast to 2027

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Oct 26, 2022, 16:15 ET

DUBLIN, Oct. 26, 2022 /PRNewswire/ -- The "Global Business Email Compromise (BEC) Market by Offering (Solutions and Services), Deployment Mode (Cloud and On-premises), Organization Size (SMEs and Large Enterprises), Vertical (BFSI, Government, Healthcare) and Region - Forecast to 2027" report has been added to ResearchAndMarkets.com's offering.

The global BEC market is expected to grow from an estimated value of USD 1.1 billion in 2022 to USD 2.8 billion by 2027, at a Compound Annual Growth Rate (CAGR) of 19.4%

Some of the factors that are driving the market growth include growing incidents of business email compromise scams and spear-phishing attacks, huge financial losses due to BEC crimes, and stringent regulatory standards and data privacy compliances.

However, the use of free, open-source, and pirated email security software and the high cost associated with the deployment of BEC solutions are expected to hinder market growth.

Services segment to grow at the highest CAGR during the forecast period

The services segment includes various services that are required to deploy, execute, and maintain BEC detection solutions in organizations. As the adoption of these solutions increases, the demand for these services is also expected to increase. The services include phishing awareness training, simulation services, and technical support services.

Various vendors offer BEC response services, which use advanced technology and analysis tools, to investigate email attacks, saving money and get back quickly and thoroughly to business faster. Some vendors offer services, which can be implemented quickly without additional infrastructure or IT overhead costs.

BEC simulation service mimics actual attack scenarios of different types of BEC attacks, such as fake invoice schemes, CEO spam, account compromise, data theft, attorney impersonation, and tax threats. Employees need to understand the tactics commonly used by cybercriminals, so a crucial role is played by security training services to reduce the likelihood of social engineering attacks resulting in data breaches.

Vendors, such as Barracuda Networks, offer security and awareness training solutions to protect against BEC or account compromise. Awareness helps employees exercise caution when receiving and sharing information via emails.

SMEs to grow at the highest CAGR during the forecast period

While the threat of cybercrime is continuously rising, the general awareness and resilience amongst SMEs remain low. One of the most common forms of cyberattacks against SMEs is BEC fraud.

These frauds usually occur as a result of a security breach of the business's computer network (or that of a third party), resulting in phishing attacks or email spoofing through social engineering techniques. SMEs have less budget to spend on security as compared to large organizations. In the event of a payment redirection fraud, the threat is more immediate. In this, SMEs either suffer a loss of its funds or those of its clients (which will attract potential liabilities).

The COVID-19 pandemic is widely exploited by malicious cyber attackers and APT groups using COVID-19 themes, due to which SMEs are focusing more on the security and adoption of BEC solutions. Even though SMEs have limited budgets, there are various vendors who have curated solutions according to the needs of SMEs. For example, the ZeroFox platform (deployable on cloud) provides advanced, AI-powered protection against phishing and BEC attacks and is the most suited for SMEs.

Asia Pacific to grow at the highest CAGR during the forecast period

The region includes emerging economies such as Japan, China, and Australia. Local firms have emerged as major contributors, especially in large markets such as China, Japan, and Indonesia and have been competing with the multi-national companies operating in the region.

China, Japan, and Korea have large ICT sectors, and India and Indonesia have developing markets for eCommerce and online services. In accordance with a report by Global System for Mobile Communications (GSMA), the mobile internet user penetration percentage in the Asia Pacific in 2019 was 48%.

Additionally, with effective government regulations and digitalization initiatives being taken by the government, the BEC market is witnessing high-growth opportunities in this region. The factors such as an increase in internet usage, regulatory compliances, and adoption of smart devices are the major factors fueling the adoption of BEC solutions. The region is also seeing a rise in cybercrimes including BEC attacks.

In recent years, Asia Pacific has undergone tremendous economic growth, political transformation, and social change. Asia Pacific is expected to witness a notable adoption of BEC solutions and services as enterprises and SMEs across verticals are deploying BEC solutions to provide protection to sensitive data.

Premium Insights

Instances of Email Phishing and Business Email Compromise Scams to Drive Market Demand
Solutions Segment to Hold Larger Market Share During Forecast Period
Cloud Segment to Hold Larger Market Share During Forecast Period
BFSI Vertical to Hold Largest Market Size During Forecast Period
Asia-Pacific to Emerge as Best Market for Investments in Next Five Years

Market Overview and Industry Trends

Drivers

Growing Scale of Business Email Compromise Scams and Spear-Phishing Attacks
Huge Financial Losses due to Business Email Compromise Crimes
Stringent Regulatory Standards and Data Privacy Compliances

Restraints

Use of Free, Open-Source, and Pirated Email Security Software
Cost Issues

Opportunities

Growing Use of ML/AI-Powered Business Email Compromise Solutions
Increasing Number of Email Users Globally

Challenges

Lack of Awareness Related to Business Email Compromise Solutions Among Enterprises

Technology Analysis

Artificial Intelligence and Machine Learning
Big Data Analytics
Cloud

Use Cases

Seattle Children's Hospital Deployed Proofpoint's Email Fraud Defense Solution to Combat Business Email Compromise Attacks
a Fortune 500 Company Chose Area 1 Security's Solution for Email Protection
Solcyber Partnered with Area 1 Security for Comprehensive Cloud-Email Security

Company Profiles

Key Players