Top 5 States Worst Hit By Business Email Compromise Scams (And The 5 Least)

BEC losses can tally into the billions of dollars

While there currently tends to be a lot of focus on ransomware, business email compromise scams remain a serious and persistent cybersecurity threat to businesses.

According to FBI statistics, BEC scams accounted for over $50 billion in domestic and international "exposed dollar loss."

These swindles often involve transfer-of-funds requests but can also involve the compromising of legitimate business email accounts, request for employees' personally identifiable information, and cryptocurrency transactions.

HoustonTech, a Texas-based managed IT services company, just released its report on the U.S. states with the highest per capita losses due to BEC and ones with the least.

Top 5 States With Highest Per Capita Loss From BEC Scams (2023)

1. Alaska

According to the report, The Last Frontier state experienced the biggest hit due to BEC fraud. The state reported "an average per capita financial loss of $16.68 due to BEC scams - more than double the national average per capita loss of $7.00. Additionally, with 9.14 victims per 100,000 residents, the prevalence of BEC scams in Alaska is alarmingly high." Victim losses totaled $12,236,756.

2. New Jersey

New Jersey came in second with a reported average per capita financial loss of $15.08 due to BEC – that is at a rate of 6.76 victims per 100,000 residents. Victim losses totaled $140,070,206.

3. Nevada

Apparently, people aren't just suffering losses at the casino slots. Nevada came in third as worst-hit by BEC, with an average per capita financial loss of $14.40 at a rate of 7.36 victims per 100,000 residents. Victim loss totaled $46,004,149.

4. Rhode Island

The tiny state has big BEC issues. The state experienced an average per capita financial loss of $12.95 and 5.66 victims per 100,000 residents due to BEC. Victim loss totaled $14,195,616.

5. Minnesota

The midwestern state came in fifth, with a reported average per capita financial loss of $12.15 and 5.59 victims per 100,000 residents. Victim loss totaled $69,732,152.

The 5 States With Least Per Capita Loss From BEC (2023)

1. Mississippi

The Magnolia State experienced the least loss due to BEC with an average loss per capita at only $1.19, with a rate of 1.15 victims per 100,000 residents. Victim loss totaled $7,399,653.

2. New Mexico

New Mexico is second lowest with an average per capita loss of $1.79, with 3.93 victims per 100,000 residents and a victim loss total at $3,775,992.

3. Vermont

Coming in third is Vermont with loss per capita averaging just $1.86 at a rate of 6.33 victims per 100,000 residents.

4. Hawaii

Hawaii had the fourth lowest loss person, at an average of $1.98, with 5.09 victims per 100,000 residents.

5. West Virginia

Fifth lowest is West Virginia, with an average per capita loss of $2.08, with 2.32 victims per 100,000 residents.

"The study's findings reveal the alarming prevalence of BEC scams and their detrimental effects on state economies," HoustonTech's Nuresh Momin said about the study in a news release.

"With states like Alaska and New Jersey experiencing disproportionately high losses, it's evident that BEC scams pose a significant threat nationwide. Businesses and individuals must prioritize cybersecurity measures to mitigate these risks and safeguard against financial losses," Momin added.

HoustonTech complied its report from 2023 data from the FBI's Internet Crime Complaint Center (IC3) on Business Email Compromise (BEC).

You can see HoustonTech's BEC data on every state in the below chart: