FBI warns of huge increase in 'CEO fraud'

CEO fraud - or whaling as it is also known - has increased dramatically since January 2015, warns FBI

The FBI has warned businesses to be vigilant for "CEO fraud", claiming the number of cases has skyrocketed by 270 per cent since January 2015.

A press release from the FBI reveals that at least 79 countries have been affected and there have been $2.3bn (£1.6bn) in reported losses between October 2013 and February 2016.

"The schemers go to great lengths to spoof company email or use social engineering to assume the identity of the CEO, a company attorney, or trusted vendor," reported the release. "They research employees who manage money and use language specific to the company they are targeting, then they request a wire fraud transfer using dollar amounts that lend legitimacy."

The FBI advises businesses to be wary of email-only wire transfer requests and requests involving urgency.

Channel consultant Eddie Pacey explained that this type of fraud - which is also sometimes dubbed "whaling" - has taken on new meaning given the different ways in which we now communicate.

"Companies really need to implement, constantly update and enforce anti-fraud processes within credit and risk management as a first line defence," he said. "Awareness of such policies is crucial, as is the need for employees to follow guidance."