Norfolk Business Loses Over $230,000 in "CEO SCAM"

Friday, 26 April 2019 13:12

A business in Norfolk County has lost over $230,000 after falling victim to what is being called the "CEO SCAM"

NORFOLK COUNTY - A business from Norfolk County has lost over $230,000 after falling victim to what is known as the CEO scam.

Police say an employee at the business who is responsible for paying invoices and transferring funds was contacted last Tuesday afternoon. They received an email from a the owner of a the business, requesting an invoice be paid to a company located in the United States.

The invoice was subsequently paid in full, totaling $236,000 when a second email was received asking to pay another outstanding invoice. The employee became suspicious and contacted the owner. It was then discovered that the email address had in fact been compromised without anyone's knowledge.

The "CEO scam" starts when a criminal poses as the company's president or owner using a fake or hacked email account. The "owner" writes directly to an employee that is responsible for arranging payments or transfers of funds to suppliers.

The invoice which was originally sent, is in fact a fake invoice that will be attached. It will look just like the owner's regular email, sent directly to someone responsible for issuing payment, making that person believe that they had received a legitimate request to pay an invoice.

How to avoid being scammed

- Educated employees about this scam and tell them to be skeptical of urgent or suspicious requests made by email.

- Always encourage employees to communicate with their manager if they feel a request seems unusual or suspicious.

- If anyone has any doubts about an email that appears to be from someone at your company, immediately contact that person by phone before responding.

- Have policies and procedures in place requiring more than one person to approve any fund transfers.

- Watch what you share on-line. This information can be used to gain information about you and that can be used to target your company.