A CEO fraud plan is executed in a very simple way: no guns, no yells, and no one gets physically hurt! In most cases, simplicity works best, the scammers hack into a senior employee’s email addresses or create a misspelled / typo domain that appears to have originated from the target company. They then use these emails to rob a company its cash quietly!
The scammers use these emails to send an urgent request for money for a very important reason such as paying an impatient client or closing a business deal. The request’s urgency limits the respondent’s time to reconsider the available options. Besides, the responded is put in a pickle since the email appears to originate from his or her senior in the company hierarchy. Moreover, such emails tend to have a confidentiality factor which makes it difficult for the respondent to inquire for help regarding the email!
Keep in mind that CEO fraud doesn’t need pre-programmed spam bots and sophisticated tools that can be filtered easily. It simply involves a robust communication channel and a convincing piece of text, and a company might end up losing millions of dollars! This is the primary reason CEO fraud is so effective, and the scam can be executed without your knowledge!
We have analyzed various CEO fraud scam cases complex structure and hierarchy. A business with over 30,000 employees is likely to have a complex hierarchy and organizational structure, numerous seniors, and managers. This creates a big pool of targets and anyone intending to impersonate a senior manager can do so effectively. Besides, small organizations can be targeted because the employees might not be aware of the contact details of their colleagues, making it easier for the fraudsters to deceive and attack them.
Understanding how the CEO fraud plans are executed is a key to protecting your business from such frauds. One thing is evident here: the fraudsters use the fact that some people might not require verifying their identity when transferring funds or organizations rely solely on email communication rather than face to face and video conferencing when it comes to transfer of funds. Therefore, you may need to ensure that such issues are addressed in your company to prevent the possibility of getting robbed.
The last thing we want is another CEO fraud victim, a reason we here to help. Feel free to schedule a meeting with us if you need help regarding CEO fraud prevention.