Companies and associations are being inundated with fake invoices – even hobby clubs targeted by criminals

The number of so-called CEO fraud cases has increased in Finland in the past year. 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”, says 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 says.

How to recognise a fake boss

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”, describes Detective Chief Inspector Matti Airaksinen from the Southwest Finland Police Department.

Fraud committed against associations is generally less profitable for criminals than that involving companies, but the damage it causes to the association can be significant.

“For example, if a fraudulent invoice is sent to all the members in the association’s name, the entire membership register and the members’ personal data can easily become subject to a security violation. The situation can be very difficult for those responsible, and the entire operation of a smaller association may be jeopardised”, Airaksinen says.

Police Day reminds us of safety on the Internet

Police Day will be celebrated this year on 31 August with the theme Internet safety. Since society is networked on all levels nowadays, the Internet has also become a permanent tool for crime.

Becoming a victim of cybercrime is best prevented by basic information security skills and healthy scepticism. It is wise to be suspicious of online communications from unknown sources, at the latest when they involve money.

“The statement that if it seems too good to be true, it usually is applies very well to scams”, Chief Superintendent Jyrki Aho from the National Police Board says.

The number of online crime cases reported to the police has remained at the same level in recent years. The number of identity thefts has been on the rise and these are mostly related to fraud in which criminals have used the personalised information, such as a personal identity code, of another person or a company.

In January-June 2019, the number of crimes involving fraud had increased by 8.6% compared to the same period last year. The share of online fraud of all fraud cases is a major driver of this growth, reflecting the increased use of the Internet and the interest of criminals in Finnish Internet users.

“Virtual currency and investment scammers, false online lovers, phishers, invoice fraudsters and criminals trying to commit all kinds of business fraud are still lurking online. Criminals develop new techniques with content that is harder to detect as soon as the former ones no longer provide them with criminal proceeds”, Aho says.

Online shoppers should be careful

Aho points out that online shoppers themselves play a key role in preventing crime involving online fraud in commerce.

“A price that is clearly cheaper than normal, the seller being in a hurry and product pictures taken from the Internet, among other things, may be signs that the buyer is about to lose his or her money to a scammer. Especially more pricey transactions should be carried out face-to-face. Some online sales platforms also provide feedback from other users. If there is no feedback or it is negative, you may want to reconsider sending money.”

Aho points out that the bank, the police or any other authority will never ask for the credentials used in online banking.

“Older Internet users should be reminded of this regularly. Strangers who are personally asking for money through the Internet are invariably out to scam people, no matter how heart-rending the story or if there is a romantic connection forming.”

Inheritances promised by strangers are also made-up stories, and the costs asked for them should never be paid. Sometimes the crime victim may have doubts, but is pulled in by the apparent credibility of the fraudster, the incentive of money or a strong attraction.

“In crimes committed from abroad, both the perpetrators and the money are usually lost. In domestic online fraud cases, the perpetrators are often found, but getting the money back is less likely. Whenever you suspect that you have been the victim of a crime, the matter should be reported to the police”, Aho emphasises.

Police Day next Saturday in 20 locales

The traditional Police Day will be arranged next Saturday in 20 locales. National Police Commissioner Seppo Kolehmainen will attend the event organised in Hamina. Police Day events are available on the police website at https://www.poliisi.fi/poliisinpaiva

Our objective on the Police Day is to promote local policing, the physical presence of police officers, and interaction with citizens. The events provide an excellent opportunity to ask the police directly about various issues. The event is being organised now for the 11th time.