Fraud Protection

CEO fraud

CEO fraud is on the rise with 432 reported CEO fraud cases in 2023¹. In attempts to persuade staff into making urgent payments or to transfer funds, criminals are posing as CEOs, as well as other members of staff within businesses such as system administrators or financial controllers. The requests are often made via email but can come via a phone call and are sometimes made when the real member of staff is out of the office. They may also ask for financial information such as reports, trade debtor lists and/or customer contact details for chasing payments.

It’s important to remember that even an apparently genuine email address may have been hacked, and that fraudsters may apply pressure by implying urgency as a means of persuading you to bypass controls around payments. Reference to the payment being ‘special’ or ‘secret’ should also ring alarm bells.

To help prevent CEO fraud follow these key steps:

• Independent verification: Independently verify any payment requests involving new beneficiary’s, amended bank details, or enquiries about payment processes – including those that appear to have come from internal emails or senior management
• Employee training: Ensure all payments staff are trained, vigilant and empowered to challenge such requests
• Restrict information: Be alert to how much information is revealed about your company and key officials through your website, social media and out-of-office automated replies

For further information visit our dedicated CEO fraud page.

¹https://www.ukfinance.org.uk/system/files/2023-05/Annual Fraud Report 2023_0.pdf^