My Email Was Hacked: What to Do When Your Customers Receive Fraudulent Messages
In recent years, electronic mail (email for short) has become an essential part of daily life. Many people use it for both personal and business purposes, including sensitive financial transactions. With this growing dependence on digital communication, cybercrime has surged. One of the most damaging threats facing businesses today is Business Email Compromise (BEC).
If your business has been affected by a BEC or direct mailbox compromise, it can feel overwhelming. You may be frustrated, embarrassed, or worried about customer trust. The good news is that recovery is possible. The key is to act quickly, communicate clearly, and follow a proven plan.
Step 1: Regain Control of Your Account
If your account has been compromised, assume the attacker still has access until it is verified secure.
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Change your email password immediately using at least 14 characters with a mix of letters, numbers, and symbols.
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Enable multi-factor authentication (MFA) on every account that supports it, especially Microsoft 365, Google Workspace, and any connected systems.
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Check mailbox rules and forwarding settings for anything unfamiliar. Attackers often create hidden rules that forward messages or automatically delete alerts.
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Review recent sign-in activity for unusual logins or unknown devices.
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Notify your IT provider right away so they can begin a forensic investigation and block any ongoing access.
- If conditional access is not enabled yet, get that enabled right away to stop foreign login attempts.
Step 2: Stop the Spread
If emails have already gone out from your account:
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Send an immediate communication to your contacts to let them know you are aware of the issue and working to resolve it (see examples below).
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Avoid sending any messages from the compromised account until your IT provider confirms it is fully secure.
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Work with your IT team to verify that your domain has not been blacklisted and that your email reputation is being restored.
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Ask recipients to delete the malicious email and not click on any links or attachments.
Step 3: Investigate and Repair
Your IT or cybersecurity partner should now take the lead to contain and remove the threat.
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Perform a complete scan of all systems for malware or unauthorized access.
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Reset any credentials that may have been reused or saved in browsers.
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Enable advanced protection features in Microsoft 365 such as Defender for Office 365 or similar tools.
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Review and correct your domain’s DMARC, DKIM, and SPF records to prevent spoofing.
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Document the incident and notify law enforcement or regulators if sensitive or financial data was involved.
Step 4: Communicate Transparently
Your customers and partners value honesty more than silence. Clear and timely communication helps maintain trust. Use these templates as a starting point once your systems are secured.
Customer Notification Email
Subject: Important Notice: We’re Aware of Recent Unauthorized Emails
Dear [Customer Name],
We recently discovered that one of our company email accounts was compromised by an external attacker. You may have received a suspicious message that appeared to come from us.
We are aware of the issue and are working with our trusted IT security team to fully secure our systems. The malicious emails were not sent by our staff. If you received one, please delete it immediately and avoid clicking any links or attachments.
For any questions or to confirm communications, contact us directly at xxx-xxx-xxxx or by replying to this message.
We appreciate your understanding as we complete our investigation and strengthen our protections.
Sincerely,
[Your Name]
[Your Title / Company Name]
Vendor or Partner Notification Email
Subject: Security Notice – Recent Email Compromise at [Company Name]
Dear Partner,
We want to make you aware that our email system experienced unauthorized access on [date]. During this time, fraudulent messages may have been sent from one or more of our email addresses.
We have identified and resolved the issue with our IT security team. Our systems are now secure, and we are monitoring all activity closely.
Please disregard any unexpected or suspicious messages sent from our domain between [date range]. If you have any questions or would like to verify any communications, please reach out to your primary contact or call us at xxx-xxx-xxxx.
Thank you for your patience and continued partnership as we work to protect everyone involved.
Respectfully,
[Your Name]
[Your Title / Company Name]
Step 5: Introduce ITDR (Identity Threat Detection and Response)
Traditional antivirus tools focus on endpoints. Firewalls protect your network perimeter. However, attackers increasingly target identities — user accounts, passwords, and permissions. Once an attacker gains access to an identity, they can move silently through systems, create new accounts, and send fraudulent messages without detection.
This is where ITDR (Identity Threat Detection and Response) becomes essential. ITDR continuously monitors login behavior, permissions, and access patterns. It uses analytics and artificial intelligence to identify unusual actions, such as sign-ins from new locations, rapid privilege changes, or impossible travel scenarios.
Implementing ITDR allows your IT team to detect and stop real-time attacks before they spread to other systems or users. It can also automatically isolate risky accounts, alert administrators, and assist in immediate remediation. For businesses using Microsoft 365 or Azure AD, ITDR is a powerful layer of protection that complements MFA, conditional access, and email security tools.
Step 6: Restore Your Reputation
After a security incident, rebuilding confidence is just as important as restoring access.
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Update your website and social media with a short notice confirming that the issue has been resolved.
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Monitor your domain reputation through DMARC reports and email deliverability tools.
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Reach out personally to key clients to reassure them that your systems are safe.
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Continue to audit email logs and monitor for unusual account behavior.
Step 7: Prevent Future Incidents
The best defense is prevention. Ongoing awareness and modern security tools can make a major difference.
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Provide recurring phishing and email safety training for your employees.
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Implement strong password policies and encourage secure password managers.
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Require multi-factor authentication for all logins.
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Set up ITDR monitoring for identity-based attack detection.
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Test your incident response plan at least once per year (Twice recommended as tabletop exercises)
Why BEC Deserves Attention
BEC remains a top driver of cybercrime losses. In 2024, reported cybercrime losses reached $16.6 billion, up 33% from 2023, and BEC alone accounted for about $2.77 billion across 21,442 incidents. That is roughly one in six dollars of all reported cybercrime losses last year. Total BEC losses over the last decade now exceed $17.1 billion. (Federal Bureau of Investigation)
These scams can happen to any organization, regardless of size or industry. The numbers make clear that BEC is still widespread and costly. (Internet Crime Complaint Center)
What Is Business Email Compromise (BEC)?
Business Email Compromise (BEC) is a type of cyberattack in which criminals use email fraud to trick victims into transferring money, sharing credentials, or revealing confidential information. Attackers typically impersonate someone the victim trusts. It might be a high-level executive, a familiar vendor, or a long-term customer. They send messages that appear authentic, often using the same writing style, signature, and tone as the real person.
These scams are highly successful because they exploit trust and urgency.
In recent FBI reporting, BEC continues to generate multi-billion-dollar losses each year. Beyond direct financial loss, these attacks damage reputations, create customer mistrust, and can expose sensitive data. (Internet Crime Complaint Center)
How Does a BEC Attack Work?
BEC attacks are carefully planned. The criminal researches the target company and its key personnel using public sources such as LinkedIn, Facebook, and the company website. They learn how the business operates, who authorizes payments, and how invoices are handled.
Once enough information is gathered, the attacker sends a realistic message that appears to come from a trusted source. The message might request a wire transfer, a change to payment instructions, or access to confidential files.
A common tactic is to label the request as urgent or confidential. For example:
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“We need to wire funds immediately for this new opportunity.”
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“Please update our vendor account to this new banking information.”
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“This is time-sensitive and must be handled by you directly.”
Because the email appears legitimate and emphasizes urgency, the recipient may comply before verifying the request. Once the transfer is made, the attacker disappears, leaving the victim with financial and reputational losses.
When You Need Help Fast
If your business email has been compromised, time is critical. Contact EasyITGuys for immediate assistance.
We help organizations:
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Secure compromised accounts
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Recover and restore domain reputation
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Set up advanced identity and email protection including ITDR
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Communicate effectively with customers and partners
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Prevent future attacks with layered defense systems
📞 Call 651-400-8567 to get expert help today.
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