Sebi Issues Warning on Rising 'Boss Scam' Cyber Fraud Targeting Executives

The Securities and Exchange Board of India (Sebi) has issued a warning regarding a growing cyber fraud known as the 'boss scam', where scammers impersonate CEOs and senior executives to trick employees into transferring funds. This advisory follows reports from the Indian Cyber Crime Coordination Centre (I4C) about an increase in such incidents. Fraudsters typically use email, WhatsApp, Microsoft Teams, and social media to create a sense of urgency, instructing finance staff to transfer money to accounts they control. Another tactic involves sending malware-laden files that compromise devices and hijack WhatsApp Web sessions. Sebi has urged regulated entities to enhance verification procedures and avoid processing financial transactions based solely on social media or messaging app instructions. The advisory highlights the need for businesses to verify payment requests through established communication channels to mitigate risks associated with these scams.

Key Points: • Sebi warns of a 'boss scam' where fraudsters impersonate executives to steal funds. • Scammers use various communication platforms, creating urgency to facilitate transfers. • Regulated entities are advised to strengthen verification processes before fund transfers.