We have become aware of an ongoing fraud scheme that initially was targeting Western European companies but appears to have emerged in the United States. The scheme involves social engineering and email spoofing, wherein the fraudster assumes the identity of a senior company executive and targets an employee from that same company, often someone in accounting or accounts payable. The victim employee initially receives an email from the “fake president” concerning a highly confidential transaction, sometimes related to an acquisition.
What steps can be taken to reduce your organization’s susceptibility to fake president fraud? It’s important to discuss fraud controls with your financial institutions to see if any enhancements can be made on their end to assist in protecting your organization against wire transfer fraud. In this article, we will review this and other methods to protect your organization from fraud.