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Purpose To explain the fraud schemes known as business email compromise (BEC) and executive impersonation that are growing in popularity, and the threat they pose to financial institutions. Design/methodology/approach This article explains BEC and executive impersonation and how they are carried out, and discusses how regulations and practical operational steps are trying to address this fraud issue. Findings Financial institutions should understand the potential for legal and regulatory risks posed by BEC and executive impersonation, and consider taking steps to create a proactive, culture of skepticism and heightened awareness to combat this type of fraud. Originality/value This article is adapted from the original report issued by the American Institute of CPAs and has been updated to address specifics concerning financial institutions.