CEO fraud is a form of impersonation where criminals pose as a senior executive or another influential decision-maker in your business. The aim is usually to get an employee to approve a payment, share confidential information, or bypass normal controls.
Unlike many scams, this one is built entirely around authority. The fraudster is counting on employees responding quickly when a request appears to come from a senior leader.
How the attack unfolds
The fraudster researches your business and identifies who processes payments. A message then arrives, apparently from a CEO, managing director, finance director or another senior figure — usually marked confidential and urgent.
The employee may be told it relates to an acquisition, legal matter, or other sensitive commercial issue. The scam relies on authority combined with urgency: the employee feels pressure to help, and reluctant to challenge someone senior.
Why this scam is so effective
Most businesses want their people to be responsive and supportive — and fraudsters exploit exactly that. The request works because it appears to come from someone with real authority, and employees often fear delaying an important matter or seeming uncooperative. Criminals understand these pressures and use them deliberately.
Building a culture of verification
The strongest defence against CEO fraud is culture. Employees should feel able to question a request, whoever it appears to come from. A genuine executive will always support verification controls — an instruction to bypass them is a warning sign, not a reason to lower scrutiny.
Key takeaway
Authority isn't evidence. Even a request from a senior leader should be independently verified whenever money or sensitive information is involved.
Related articles
- What is business email compromise (BEC)?
- What is invoice fraud?
- What is supplier fraud?
- How can businesses protect themselves from payment fraud?