Keep an eye out for the “CEO scam”

Hey there, time traveller!
This article was published 06/03/2017 (3224 days ago), so information in it may no longer be current.

A current fraud trend that has been reported to the Winnipeg Police Service is known as the “business executive” or “CEO” scam.

The scammer targets the employee in an organization who is responsible for making payments to outside entities. The scammer purports to be from the targeted employee’s human resources department, a chief executive officer, a chief financial officer or someone in a similar position. Scammers who use this ploy will often create false e-mail addresses that look very similar to authentic email addresses to add legitimacy to their requests.

The scammer indicates he or she is an executive working on an urgent business deal which requires a wire transfer be sent immediately. As the scammer purports to be a ranking member of the organization, the targeted employee often responds and obtains details on where the wire transfer is to be sent.

Variations of this type of fraud may also occur at financial institutions. The email of a client of the financial institution is compromised by the scammer. The scammer sends an email to a representative of the financial institution, requesting that an urgent transfer of funds be completed. The representative of the financial institution, wishing to assist the client, processes the transfer.
The losses attributed to this type of fraud are substantial. Wire transfers attributed to this type of fraud can range from $5,000 to $800,000.

To safeguard against this kind of scam, consider these tips:

• Be wary of unexpected email correspondence from members of your organization or clients presenting an urgent situation requiring an immediate wire transfer.

• Pay close attention to the email address. Does it actually match the correct address? You cannot rely on this alone. If scammers have compromised the email address, they may be able to send and receive emails from that address.

• Be sure to independently confirm the request by telephone or in person. Do not use the contact information provided as a means of verifying a suspect transaction, as scammers may provide alternate phone numbers in their control.

• Pay close attention to the language used in the email. The suspect email may contain formatting, spelling, and grammatical errors. The style of writing may not resemble previous correspondence from the actual member of the organization or client.

Important Fraud Prevention Month dates

• Join the national Twitter event on March 9 at #2Good2BeTrue about fake online endorsements and social media content.

• Be part of the conversation! Join the Twitter event on March 23 from 12-1 p.m. at #WPSFraudSquad. A WPS financial crimes investigator will be available to answer your questions.

• A free shredding day will be held at St. Vital Centre on March 31 between 11 a.m. to 1 p.m.  Find us at the Shred-It truck (maximum of two bags or boxes per person).  

March is Fraud Prevention Month, so the Winnipeg Police Service  and Canstar Community News are publishing a series of articles to alert the public to a variety of scams used by fraudsters.