CEO Fraud

CEO fraud is a form of cybercrime in which attackers pose as a company's top executives to deceive employees into making unauthorized money transfers or revealing confidential information.

CEO fraud (Chief Executive Officer), also known as Business Email Compromise (BEC) or whaling, is a form of cybercrime where attackers impersonate a company's CEO, senior executive, or another high-ranking official to manipulate employees or business partners into transferring money, sharing sensitive information, or taking unauthorized actions. It is a type of social engineering attack that exploits trust and authority within an organization.

CEO fraud is a highly sophisticated and targeted form of phishing , called spear-phishing, which is very dangerous mainly due to the potential for financial losses.

Key Features of Attack

1. Impersonation of a High-Level Executive: Cybercriminals use spoofed email addresses, hacked accounts, or closely resembling domains to appear as though they are the CEO or another senior leader.

2. Urgent Requests: Messages often contain a sense of urgency or secrecy, such as "This is a confidential matter, and it must be completed today!".

3. Targets Specific Employees: Attackers usually focus on employees with access to finances (e.g., accountants) or sensitive company data (e.g., HR personnel).

4. Financial Gain: The primary goal is usually to trick the target into wiring money to a fraudulent account, paying fake invoices, or sharing confidential financial information or customer data.

Common Scenarios of Scammers

• Wire Transfer Requests: An email instructs the finance team to transfer funds to an external account, often disguised as payment to a legitimate vendor.
• Payroll Diversion: Attackers may request changes to direct deposit details for an employee's payroll.
• Sensitive Data Theft: Requests for sensitive documents, such as employee tax information or trade secrets.

Techniques Used

• Email Spoofing: Altering the sender email address to appear legitimate.
• Lookalike Domains: Registering domains similar to the company’s, such as using company-xyz.com instead of companyxyz.com.
• Account Compromise: Gaining access to the real CEO’s or executive’s email account.
  • Tip! Read our recommendations for strong and secure passwords .
• Social Engineering: Using publicly available information (e.g., from social network) to make the request seem authentic.

Important Prevention Tips

CEO fraud is a growing concern due to its high success rate and significant financial impact. Awareness and robust cybersecurity measures are crucial in defending against this type of attack.

Here are 5 tips for effective countermeasures you can take to protect yourself:

1. Verification Processes: Require employees to confirm requests for financial transactions or sensitive data through a second channel, such as a phone call.
2. Training: Educate employees about recognizing suspicious emails and identifying CEO fraud tactics.
3. Multi-Factor Authentication (2FA/MFA) : Secure executive email accounts with MFA to prevent unauthorized access.
4. Email Security Solutions: Implement tools that detect spoofing and phishing attempts.
5. Restrict Access: Limit who can approve significant transactions or access sensitive data.