SEBI Warns Warns of 'Boss Scam' Targeting Corporate Employees

The Securities and Exchange Board of India (SEBI) has issued an urgent warning regarding a rising cyber threat dubbed the 'boss scam'. In this sophisticated fraud, cybercriminals impersonate CEOs and senior executives to manipulate employees into transferring corporate funds.

Acting on intelligence from the Indian Cyber Crime Coordination Centre, SEBI revealed that fraudsters are primarily targeting finance executives. Using platforms like email, WhatsApp, Microsoft Teams and other social media networks, scammers pose as top management and issue urgent directives to transfer money into accounts they control.

Another dangerous variation of the scam involves malware. Scammers send infected files to employees, which, when opened, can hijack WhatsApp Web sessions or compromise devices. Once access is gained, the fraudster uses the compromised finance officer's account to order subordinate staff to make immediate payments to specified "mule" bank accounts.

In response to the escalating threat, SEBI has directed all its regulated entities to implement stricter financial controls.

The regulator explicitly advised corporate officials never to authorize fund transfers based solely on instructions received via social media or messaging platforms, urging them to verify all urgent financial requests through secure, official corporate channels.