CEO Frauds & Cyber Law

Tuesday, 20th February, 2024
Author: Shuchi Nagpal

1. What is CEO Fraud?

CEO Fraud, also called whale phishing, targets senior executives in companies, tricking them into giving out sensitive information or transferring money.

The fraudsters often pretend to be the CEO of the company giving the order.


2. Real-Life Story

The “CMD” of a Pune company told the senior accounts officer to make a series of urgent transfers totalling Rs 4.06 crores.

The accounts officer made the transfers and then checked with the CMD upon his return.

He then realised the fraud!!


3. Victims are Made to Feel

✅ Sense of urgency
✅ Need for secrecy
✅ Fear of offending a CXO
✅ Hope that helping a CXO will help their career


4. Our Secret Tips

✅ Verify: Verify the caller independently.
✅ Beware: of calls/messages demanding urgent or secretive action.
✅ Avoid: clicking on strange links or attachments, no matter who asks.


5. Cyber Law in Action

Sections of the IT Act that may apply:

✅ Section 66C: Identity theft if the scammer uses someone else’s ID to cheat the victim.
✅ Section 66D: Cheating by personation using computer resource

Sections of the IPC that may apply:

✅ Section 416: Cheating by personation
✅ Section 420: If the scam involves deceiving someone to transfer money or property.