The Securities and Exchange Board of India (SEBI) has warned regulated entities and listed companies about a fraud tactic called the “Boss Scam”. The scam is relevant for UPSC because it links corporate governance, cyber security, and financial fraud prevention.
What SEBI said
SEBI said fraudsters impersonate chief executives or other senior officials and send instructions through email, WhatsApp, or Microsoft Teams. The message is designed to look as if it has come from a superior or a trusted counterpart inside the organisation.
According to SEBI, the fraud succeeds when finance teams accept the instruction and carry out fund transfers to the fraudster. SEBI noted that the risk becomes serious when messages appear to come from subordinates or counterparts and trigger payment movement based on the impersonated instructions.
Why this matters for UPSC
Related current affairs
- SEBI cautions firms against rising ‘boss scam’
- How India’s scam towns built a thriving industry around fraud
- SEBI unveils Information Technology Resilience Index (ITRI) for market infrastructure institutions
- SEBI fines two firms ₹3.7 crore for CAS manipulation
- CAS will help detect market manipulators, asserts SEBI chief Tuhin Kanta Pandey
- SEBI pulls up Dhenu Buildcon over round-tripping charges