CEO fraud, a cybercrime where scammers impersonate high-ranking executives to manipulate employees into unauthorized payments, costs businesses over $26 billion annually (FBI).
Scammers use email spoofing to create seemingly legitimate emails, often urgent, requesting immediate action on financial matters like fund transfers, gift card purchases, or sensitive information disclosure. They may reference information gleaned from the company’s social media to enhance authenticity.
Red flags to identify CEO fraud emails:
- Fake sender addresses or names
- Urgent language
- Requests for clicks on links/attachments from unknown sources
- Demands for confidentiality
- Bypassing usual approval processes for payments
Protect your business:
- Educate employees about CEO fraud and its red flags.
- Train employees to verify email senders’ identities.
- Implement multi-layered payment authorization policies.
- Establish checks and balances to ensure all financial requests are legitimate.
By following these steps, businesses can safeguard themselves from CEO fraud and similar payment scams.