SEBI cautions regulated entities against ‘Boss Scam’
SEBI warns regulated entities and listed companies against impersonation-based fraud called the “Boss Scam”
- SEBI cautioned regulated entities and listed firms about impersonation-based fraud called the “Boss Scam”.
- The Boss Scam uses impersonated instructions from chief executives or senior officials to push finance teams into fund transfers.
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.
UPSC may frame the issue as a cyber-enabled financial fraud problem that tests the role of SEBI, internal controls in listed entities, and the need for stronger verification protocols in corporate finance functions.
