ECONOMY & WORK
MONEY 101
NEWS
PERSONAL FINANCE
NET WORTH
About Us Contact Us Privacy Policy Terms of Use DMCA Opt-out of personalized ads
© Copyright 2023 Market Realist. Market Realist is a registered trademark. All Rights Reserved. People may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.
MARKETREALIST.COM / NEWS

Major Bank Highlights Growing Threat of 'CEO Fraud' Scams

In 'CEO fraud' scams, unsuspecting victims are manipulated into making urgent payments under pretenses.
PUBLISHED FEB 29, 2024
Cover Image Source: APP Fraud | Pexels |  Anete Lusina
Cover Image Source: APP Fraud | Pexels | Anete Lusina

In the ever-evolving landscape of cybercrime, where perpetrators constantly innovate to exploit vulnerabilities, a lesser-known yet potent threat has emerged — 'CEO fraud' impersonation scams. These scams, characterized by fraudsters masquerading as senior company officials, have surged in frequency, leaving victims reeling from significant financial losses. The alarm bells have been rung by a major bank, shedding light on the growing menace and urging vigilance among businesses and individuals alike.

Cyber privacy losses are turning out to be equivalent to a loss in a ransomware attack. Image Source: Unsplash|Photo by FlyD
Cyber privacy losses are turning out to be equivalent to a loss in a ransomware attack. Image Source: Unsplash|Photo by FlyD

Lloyds Bank, in a stark warning, unveils the disturbing trend of 'CEO fraud' scams, where unsuspecting victims are manipulated into making urgent payments under pretenses. The modus operandi typically involves a perpetrator posing as a high-ranking executive within a company, coercing employees into executing financial transactions purportedly for legitimate reasons. Whether it's settling invoices or purchasing gift cards under the guise of bonuses, the ruse preys on the trust and authority vested in senior leadership.

The financial toll inflicted by these scams is staggering, with victims suffering an average loss of nearly £11,000 ($13,936) per incident over the past year. Despite being less prevalent compared to other impersonation scams, such as those involving police or bank staff, 'CEO fraud' stands out for its disproportionately high average loss per victim. This underscores the sophistication and efficacy of this deceptive tactic employed by fraudsters.

Image Source: Unsplash  | Jefferson Santos
Image Source: Unsplash | Jefferson Santos

While police or bank staff impersonation scams remain pervasive and rapidly proliferating, 'CEO fraud' exacts a heavier financial toll on its victims, reflecting a shift in tactics among cybercriminals.

Fraudsters adeptly exploit the authority associated with law enforcement or banking institutions to dupe individuals into surrendering their assets. Whether through false warnings of bank account jeopardy or fictitious pleas for assistance in criminal investigations, perpetrators capitalize on the veneer of credibility to perpetrate their schemes.

Despite the surge in reported cases, there's a glimmer of hope in the form of declining average losses in certain categories of impersonation scams. Instances of police or bank staff impersonation scams, while prevalent, have seen a notable 31% decrease in average losses over the past year. This could indicate increased awareness and enhanced countermeasures implemented by financial institutions and law enforcement agencies to thwart such fraudulent activities.

Image Source: Photo by Croberin Photography |Pexels
Image Source: Photo by Croberin Photography | Pexels

Beyond the realm of corporate impersonation, other variants of these scams lurk in the digital shadows, preying on unsuspecting individuals through diverse channels. From masquerading as friends or family members on messaging platforms to impersonating renowned retail giants like Amazon, cybercriminals demonstrate adaptability and ingenuity in their tactics. The evolving landscape of impersonation scams underscores the need for heightened vigilance and skepticism in digital interactions.

In light of these emerging threats, safeguarding against impersonation scams necessitates a multifaceted approach encompassing awareness, skepticism, and proactive measures. Vigilance is paramount, with individuals urged to exercise caution when receiving unsolicited communications, especially from unfamiliar sources. The cardinal rule remains steadfast: legitimate entities like banks or law enforcement agencies will never solicit sensitive information or financial transactions via unsolicited calls or messages.

Image Source: Pexels|Photo by Andrea Piacquadio
Image Source: Pexels|Photo by Andrea Piacquadio

Moreover, adopting a healthy dose of skepticism and verifying the authenticity of requests through independent channels can serve as a bulwark against deception. Whether it's verifying the legitimacy of a call purportedly from a known contact or scrutinizing requests for financial transactions, exercising due diligence can prevent falling prey to impersonation scams.

MORE ON MARKET REALIST
The guest had no idea about the item being a Tiffany product and being embedded with a rare gem.
15 hours ago
The host was baffled by the goof up that the contestant made between two words.
16 hours ago
Carey showed that he has got the weapon of sarcasm, and he isn't afraid to use it.
17 hours ago
Whatever the host was expecting, it was far away from what the contestant said on national TV.
18 hours ago
The guest was surprised to learn more about the item he had actually found on the street for free.
20 hours ago
After going through everything on the board, the player left Harvey in hysterics with his answer.
1 day ago
As it so turned out, the weird-looking floor lamp was a piece from a very famous studio.
1 day ago
Most contestants were consistently getting the answers wrong, and Harvey was worried about what was next.
2 days ago
Some claimed that they got the puzzle despite English being their second language.
2 days ago
The letter was written to a columnist in response to a piece taking a swipe at Sinatra.
2 days ago
In a special episode of Celebrity Family Feud, a WWE star decided to go for the one thing Harvey is known for.
2 days ago
Luck was shining for her as she was off to a flying start and won the car with a single card.
2 days ago
Sajak had a witty reply for the contestant who was fanboying over White during the game.
5 days ago
The model said that considering White's age she would also take the offer from Sony.
5 days ago
Sheila won a brand new entertainment unit, complete with an HD plasma TV and mini bar from Howard Miller.
6 days ago
The appraiser disclosed that Yoakum began painting in the 1960s and he created one unique piece of art every single day.
6 days ago
The entrepreneur also managed to get the sharks to taste the vegan alternative meant for pets.
6 days ago
Throughout the game Monica tried to calm her nerves by placing her right hand over her chest.
7 days ago
Harvey later realized that the contestant had a crush on him and they had a moment.
7 days ago
The host had warned the men in advance to not risk their marriage for some points.
Mar 24, 2025