SEBI flags ‘Boss Scam’ that targets C-suite officials
SEBI has issued an advisory warning corporate entities about the 'Boss Scam', where fraudsters impersonate senior executives to solicit fraudulent fund transfers. The regulator highlighted the use of AI-driven deepfakes and malware as common tactics used by these criminals.
Why it matters
As corporate fraud becomes increasingly sophisticated through AI, this advisory is critical for protecting financial assets and institutional security.
Market regulator Securities and Exchange Board of India (SEBI) has cautioned regulated entities and listed firms against “Boss Scam”, wherein fraudsters impersonate as chief executives or other senior officials to trick finance teams into transferring funds
“The communication through email/ WhatsApp/Microsoft Teams/other social media platforms with their subordinates or counterparts, directs them to carry out instructions given to them resulting in transfer of funds to fraudsters,” SEBI said in a statement.
Outlining two methods, SEBI said fraudsters impersonate senior executives and send messages or make calls directing subordinates to urgently transfer money to specified bank accounts. In some cases, fraudsters use artificial intelligence tools such as voice cloning and deepfake video calls to make the impersonation appear genuine.
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