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CEO Fraud

As part of International Fraud Awareness Week, this is my first post about common business frauds.

“CEO Fraud” often targets limited liability companies but can affect all types of businesses.

The fraudster first sends an email to the company finance department, purporting to be the CEO or director. Stating that money is needed quickly, the finance department complies and money is sent to the fraudsters account.

Average losses to this fraud are £35000, but one UK company lost £18.5m.

Have a system in place which allows staff to properly verify contact from their senior members of staff. You could do this by having two points of contact so that the staff can check that the instruction which they have received from their CEO is legitimate.

Educate all your staff that this type of fraud is happening.

Has your company been targeted by this type of fraud?