SEBI warns of ‘Boss Scam’ that could cost you money:Fraudsters using fake WhatsApp messages to trick employees into transferring company funds

Imagine getting a WhatsApp message from your CEO asking you to urgently transfer money for a confidential business deal. The message looks genuine, the profile picture matches, and even the voice on the call sounds familiar. Most people would assume it’s real. But it could actually be a scam. The Securities and Exchange Board of India (SEBI) has warned companies and financial institutions about a growing cyber fraud known as the ‘Boss Scam’ or CEO impersonation scam. Cybercriminals are pretending to be senior company officials and pressuring employees to send money, often before anyone has time to verify the request. Here’s what the scam is, how it works, and what you can do to avoid becoming its next victim. What is the ‘Boss Scam’? The Boss Scam is a type of cyber fraud where criminals pretend to be a company’s CEO, Managing Director (MD), or another senior executive. They contact employees, especially those working in finance or accounts, through WhatsApp, email, or other messaging platforms and ask them to make an urgent payment or transfer funds. The request usually appears genuine and creates a sense of urgency, making employees feel they must act immediately without asking questions. According to SEBI, the warning was issued after the Indian Cyber Crime Coordination Centre (I4C) reported an increase in such cases across the country. How do fraudsters trick employees? SEBI says scammers are mainly using two methods. 1. AI-powered CEO impersonation With the help of artificial intelligence, fraudsters can make fake conversations appear surprisingly real. They may use: Once they gain the employee’s trust, they ask for an immediate fund transfer. In some cases, they claim the payment is linked to a confidential business matter or Unpublished Price Sensitive Information (UPSI) and insist that the employee keep it secret. This discourages employees from verifying the request with others. 2. Malware through fake files Another method involves sending a .zip file through WhatsApp or email. If the file is opened on a Windows computer, it installs malware that can hijack an active WhatsApp Web session. Once the attackers gain access to the employee’s WhatsApp account, they can send fake payment instructions to colleagues while appearing to be the legitimate user. In some cases, cybercriminals even change the contact details on a compromised phone by saving their own number under the CEO’s or MD’s name, making future scam messages look even more convincing. Also read: Samsung Galaxy Unpacked 2026 is on July 22:From new foldables to next-gen watches, what to expect from Samsung’s biggest event

Why is this scam so dangerous? The scam doesn’t rely only on hacking. It takes advantage of trust, urgency, and fear of questioning senior management. Employees often believe they are following instructions from their boss, especially when the message stresses that the matter is urgent or confidential. By the time anyone realises the request was fake, the money has already been transferred. How to protect yourself SEBI has advised companies and employees to take a few simple precautions: Also read: NTA warns against AI-generated NEET OMR sheets as protests continue:Agency says fake documents won’t fool its system

What to do if you become a victim If you suspect you have encountered this scam or have already transferred money, report it immediately. You can: Cybercriminals are constantly finding smarter ways to exploit technology, and the Boss Scam is one of the latest examples. With AI-generated voices, deepfake videos, and compromised WhatsApp accounts, fake requests can look almost identical to genuine ones.