CEO Fraud: They Pretend to Be Your Chief Executive Officer

CEO fraud occurs when an employee authorized to make payments is tricked into paying a fake invoice or making an unauthorized transfer from the company account.

How does it work?

The method relies on an employee’s eagerness to promptly attend to tasks requested by a senior executive. Fraudsters often have considerable knowledge about the organization and the emails appear very convincing.

What are the warning signs?

• Phone call or email from a senior executive with whom you are not normally in contact.
• Request for absolute confidentiality.
• Pressure and sense of urgency.
• Exceptional request that contradicts internal procedures.
• Threats or flattering comments or promises of reward.

What Can You Do?

AS A COMPANY:

• Be aware of the risks and ensure employees are also aware.
• Encourage your staff to be cautious about payment requests.
• Implement internal protocols for payments.
• Implement a procedure to verify the legitimacy of payment requests received by email.
• Establish procedures to manage fraud.
• Review your company website content, limit information, and be cautious with social media.
• Modernize and update the security of your systems.
• Always contact the police in case of attempted fraud, even if you have managed to avoid it.

AS AN EMPLOYEE:

• Strictly apply the established security procedures for payments and purchases. Do not skip any step and do not yield to pressure.
• Always carefully review email addresses when dealing with sensitive information or money transfers. Fraudsters often use fake emails where a single character differs from the original.
• If you have doubts about a transfer order, consult an expert colleague, even if you have been asked for discretion.
• Never open suspicious links or files received by email. Be especially careful when checking your personal mailboxes on company computers.
• Limit information and be cautious on social media.
• Do not share information about the company’s hierarchy, security, or procedures.
• If you receive a suspicious email or call, always inform your IT department.

Download the infographic with tips to avoid becoming a victim of this fraud.