CEO fraud cases on the rise

The number of so-called CEO fraud cases has increased in Finland in the past year, said the police in a bulletin.

CEO fraud refers to crimes where the information of a person, usually one working in the company or association in an executive position, is used to commit fraud.

“For example, a typical method is that the criminal pretends to be the CEO of the company and asks a subordinate by e-mail to pay a fabricated invoice to the criminal’s account,” said Detective Chief Inspector Marko Leponen from the police’s Cybercrime Centre operating in connection with the National Bureau of Investigation.

This year, 196 reports of suspected CEO fraud have been filed with the police and, according to police estimates, companies and other targeted operators have lost an estimated EUR 4.2 million as a result of these crimes. About 170 reports were filed with the police last year and about a hundred in 2017.

“CEO fraud has been committed in Finland for several years. In the past, the targets have primarily been large and medium-sized companies, but recently various associations, such as sports and other hobby clubs, have also been targeted,” Leponen said.

Due to the increase in fraud committed against associations and companies, the police urge people in charge of financial transactions to exercise special vigilance when paying invoices. The attempts at deception are often done with great skill and distinguishing fabricated invoices from genuine ones requires meticulousness.

“Special characteristics of scam e-mails include, for example, being in a rush and an exceptionally large amount. It is also typical for the sender to say that he or she is unreachable and hopes not to be contacted about the invoice,” described Detective Chief Inspector Matti Airaksinen from the Southwest Finland Police Department.