SEBI has cautioned listed companies and compliance officers about a growing fraud pattern called a “boss scam”. In these frauds, criminals impersonate senior executives or use authority-based social engineering to push employees into transferring funds or sharing sensitive information.
The warning matters because the fraud does not always depend on technical hacking. It exploits trust chains inside firms, urgency in communication, and weak verification practices. SEBI has asked companies and market participants to strengthen verification, internal controls, and staff awareness.
Background and earlier position
Social engineering frauds are a recurring corporate-risk problem. They target decision-making gaps rather than only software weaknesses. In listed companies, such frauds can cause financial loss, disclosure failures, and reputational damage.
What changed now
SEBI has specifically warned about boss scam frauds and has issued cautionary guidance for listed companies and compliance officers. The focus is on tighter verification before fund transfers or sensitive actions, along with stronger internal controls and employee alertness.
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