Sebi Issues Warning on Rising 'Boss Scam' Targeting Finance 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 finance employees into transferring funds. This warning follows reports from the Indian Cyber Crime Coordination Centre (I4C) about an increase in such incidents. The fraudsters utilize advanced techniques, including AI-driven deepfakes and voice cloning, to create realistic impersonations during communications via email, WhatsApp, and social media. Victims are often instructed to transfer money to mule accounts under the guise of urgent requests, sometimes claiming confidentiality due to Unpublished Price Sensitive Information (UPSI). Additionally, malware-laden files are sent to compromise devices, allowing attackers to hijack WhatsApp Web sessions. Sebi has advised companies to verify all financial requests through direct communication with senior officials and to avoid acting solely on digital instructions. The advisory highlights the need for enhanced internal controls and verification processes to mitigate risks associated with these scams.

Key Points: • Sebi warns of a growing 'Boss Scam' where fraudsters impersonate CEOs to steal funds. • Scammers use AI deepfakes and voice cloning to create realistic impersonations. • Companies are advised to verify all financial requests through direct communication.