Executive Phishing - Is The Email From Your CEO Fake?

Exceptional executive phishing attacks are one of the most effective and cost-effective ways to breach a company’s security. Executives can be lured in by email or phone calls, but the result is almost always the same.

An executive phishing attack is a big worry for all sorts of companies. It’s a major reason organizations lost over $43 billion (USD) from 2016 to 2021, with specific CEO fraud scams contributing significantly to these losses, becoming what the FBI terms a multi-billion dollar problem annually.

In this article, we will discuss executive phishing definition, why it is such a threat, and how to avoid becoming the next victim.

Key Takeaways

Executive phishing, including CEO fraud, targets senior leaders by impersonating trusted sources to steal data or initiate fraudulent transfers.
Common tactics include Business Email Compromise (BEC), fake invoices, and social engineering, often creating urgency or exploiting trust.
Vigilance is key: Scrutinize emails for unusual requests, poor grammar, or odd sender details, and verify suspicious messages via separate channels.
Technical defenses like DMARC/SPF/DKIM email authentication, Multi-Factor Authentication (MFA), and advanced email filtering are essential.
Organizational measures like security training, strict financial protocols, regular audits, and incident response plans provide critical layers of protection.

What is Executive Phishing?

Executive phishing is a cybercrime that targets high-level executives and other senior decision-makers like the CEO, CFO, and high-ranking executives. This deceitful practice, sometimes specifically called CEO Phishing when the top executive is impersonated, involves cybercriminals mimicking these leaders to deceive employees or the executives themselves. The executive’s name, email signature, digital business card, writing style, and other details are often used during the phishing attack to make the message seem legitimate.

In 2020, cyber crimes like CEO fraud and ransomware cost over $4.1 billion, with reported cases rising by 69% from 2019 to 2020, reaching over 791,000. Some reports indicate that Business Email Compromise (BEC) scams, which include CEO phishing, nearly doubled between 2018 and 2019 alone. Sadly, these cyber threats aren’t slowing down; they’re worsening and affect businesses globally.

It’s designed to trick the victim into thinking they are receiving an email from someone in their organization or another trusted source, exploiting trust and the hierarchical nature of companies.

Executive phishing attacks usually involve a well-crafted email from an employee within your organization but could also include an email from someone outside your organization.

The emails often contain information about an upcoming meeting, such as the agenda or an upcoming contract, or request urgent actions like wire transfers or sharing confidential data.

The attacker may also attempt to access confidential data stored on the corporate network by posing as a trusted employee with access to sensitive information.

Executive phishing aims to steal confidential data such as passwords, sensitive documents, and login credentials, or to deceive employees into transferring funds or providing access to systems. The attacker will then use these stolen credentials or gained access for malicious purposes.

Related Read: What is a Phishing Email?

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Why Phishing Attacks Target Executives?

Targeting executives allows hackers to access valuable information that could be sold on the Dark Web or used as blackmail against the victim’s company. These attacks often leverage the authority and trust associated with executive positions to manipulate employees into actions they wouldn’t otherwise take, such as transferring funds or revealing credentials.

Because C-level executives typically have access to sensitive data such as financial data, personally identifiable information (PII), and other confidential business documents, they can become prime targets for phishing attacks aiming to obtain this data by any means necessary. Furthermore, their accounts, if compromised, can be used to launch highly convincing attacks against other employees or partners. The potential impact of a successful executive phishing attack is severe, including significant financial losses, damage to the organization’s reputation, legal consequences, operational disruptions, data breaches, and considerable stress for involved employees.

Executive Phishing Attack Example

An example of an executive phishing email can be seen in the following image:

Major Types of Executive Phishing Attacks

The following are some of the major types of executive phishing attacks:

Business Email Compromise (BEC) Attacks

BEC attacks target CEOs and other senior officials (often called CEO fraud in this specific case) by impersonating their emails and requesting money transfers or sensitive information.

BEC attacker will send fraudulent emails with fake company logos and spoofed sender addresses, sometimes mimicking the executive’s writing style, to trick the recipient into believing they are real and acting on the fraudulent request.
Related Read: Basic BEC Defense Strategy for Small Businesses

Invoicing Attacks

This attack aims to steal money from companies by creating fake invoices that appear legitimate but contain errors or discrepancies, often directing payments to accounts controlled by the attacker.

The attacker will then request payment on these invoices using bank wire transfers or other payment methods that take time to verify, sometimes impersonating a known vendor or an executive authorizing the payment.

Video Communication Platforms Exploitation

In this attack, the hacker exploits a video communication platform to impersonate the executive. For example, they could use Google Hangouts or similar tools to impersonate the CEO and ask for confidential information during a fake meeting or via chat.

The hacker may also email the employees indicating they will meet with someone from finance on a video call. They instruct them to download an app (which might be malicious) and enter their login details, potentially compromising credentials.

Social Engineering is the core tactic used in all these attacks to access sensitive information or data by tricking users into divulging passwords, Social Security numbers, authorizing payments, or other sensitive actions.

The attacker often pretends to be from IT, a senior executive, or another department within your organization and asks for access to your computer or network resources, or requests urgent action when normal business practices do not warrant this request, exploiting trust, hierarchy, or urgency.

Executive Phishing vs Whaling

Remember that both Executive Phishing and Whaling are cyberattacks aimed at high-level personnel, with Whaling being a more specialized variant often synonymous with attacks targeting the absolute highest-ranking individuals (the “biggest fish”). Both are forms of spear phishing, meaning they are highly targeted and personalized. Proper cybersecurity measures and employee training are crucial for defense against these threats.

Let’s have a look at executive phishing vs whaling:

Aspect	Executive Phishing	Whaling
Target	Executive phishing targets high-ranking executives within a company.	Whaling focuses on the very top-level executives, such as CEOs and CFOs (the “whales”).
Objective	Executive phishing aims to gain unauthorized access, steal data, acquire login credentials, or initiate fraudulent transactions.	Whaling aims to extract highly sensitive information or large sums of funds by compromising or impersonating high-profile executives.
Attack Type	Executive phishing is a type of spear phishing attack that specifically tricks executives or uses their persona to trick others.	Whaling is a highly specialized form of spear phishing, targeting the most influential individuals (“whales”).
Impersonation	In executive phishing, attackers impersonate a senior executive or colleague to deceive the target.	Whaling involves impersonating the most senior executives to exploit their high-level authority and trust.
Preparation	Attackers researching the target’s role, communication style, and relevant information is common in executive phishing.	Whaling perpetrators conduct thorough research on the target executive, their responsibilities, relationships, and the company environment.
Email Content	Executive phishing emails mimic official communication. Often creating a sense of urgency or addressing sensitive matters relevant to the executive’s role.	Whaling emails contain highly customized and personalized Messages tailored specifically to the target’s position, responsibilities, and current context.
Social Engineering	Executive phishing exploits power dynamics, urgency, or curiosity to manipulate targets into taking action.	Whaling leverages the perceived high-level access and authority of the impersonated executive to manipulate the target’s trust and compliance.
Payload	In executive phishing, malicious links, attachments, or requests for information or financial transactions are common payloads.	Whaling payloads often seek highly confidential data, large financial transactions, or other valuable assets accessible only at the highest levels.
Impact	The impact of executive phishing can range from compromised accounts and data breaches to significant financial loss and reputational damage.	Whaling’s impact can be extremely significant, leading to substantial financial losses, severe reputational damage, and potential regulatory consequences for organizations.
Countermeasures	Countermeasures against executive phishing include employee training, use of anti-phishing tools, strong authentication, and vigilant email practices.	Defending against whaling involves robust security awareness training (especially for executives), advanced threat detection, strong authentication methods, and strict verification protocols.
Examples	Examples of executive phishing include fake requests for money transfers or data sharing sent to or seemingly from executives.	Whaling involves sending highly targeted emails to top-level executives, often with convincing, context-specific malicious intent or deceitful requests appearing to come from peers or critical external entities.

Related Read: Whaling Phishing vs. Regular Phishing

Defense and Mitigations for Executive Phishing Attacks

The following security measures can help protect your organization from executive phishing:

DMARC, SPF, and DKIM Implementation

DMARC (Domain-based Message Authentication, Reporting & Conformance), along with SPF (Sender Policy Framework) and DKIM (DomainKeys Identified Mail), are crucial email authentication protocols. SPF specifies authorized mail servers, DKIM adds a digital signature to verify email integrity, and DMARC provides a policy to handle emails failing these checks, enabling organizations to instruct receiving mail servers on how to handle fraudulent messages using their domain and gain visibility into such attempts. Implementing these significantly reduces the risk of email impersonation.

Security Awareness Training

Security awareness training will help employees identify potential threats before they become an issue. This training should be regular and tailored to specific roles, especially for executives and finance personnel who are prime targets.

Security awareness training teaches people how to identify suspicious emails based on their content (e.g., unusual requests, urgency, poor grammar/spelling), sender details (e.g., slightly altered email addresses), and context (e.g., requests outside normal procedures, unexpected communication methods or times). It also teaches employees how to report these emails safely and the importance of verifying requests through separate, trusted communication channels before acting.

Multi-Factor Authentication (MFA)

Multi-factor authentication (MFA) adds another layer of security beyond just a password by requiring users to enter a code sent to their phones, generated by an app, or use a physical security key before gaining access to accounts and systems. Implementing MFA across all critical accounts significantly hampers attackers even if they steal credentials.

Email Filtering and Anti-Phishing Tools

The first line of defense is to use advanced email filtering solutions and anti-phishing tools. This software uses various techniques to identify and block or flag suspicious emails before they reach employee inboxes.

These tools analyze sender reputation, email content, links, attachments, and header information to detect known phishing indicators, spoofing attempts, and potential malware.

Related Read: Difference between Anti-Spam and DMARC

Regular Software Updates and Patch Management

Ensure all software, including operating systems, browsers, email clients, and third-party applications, is kept up-to-date with the latest security patches. This includes both physical and virtual machines.

Patches often include security fixes for vulnerabilities that could be exploited by attackers through malicious links or attachments delivered via phishing emails.

Strict Financial Protocols

Establish and enforce clear, stringent protocols for all financial transactions, especially wire transfers or changes to payment details. This should include mandatory multi-person approval for significant amounts or unusual requests, regardless of the apparent source’s seniority.

Verification of Requests

Cultivate a culture where employees feel empowered and are required to verify unusual or sensitive requests (especially financial or data-related ones) through a separate, trusted communication channel (e.g., a phone call to a known number, an in-person conversation) before taking action, even if the request appears to come from a top executive.

Develop Cybersecurity Policies

Implement comprehensive cybersecurity policies that cover secure email practices, data handling, password management, incident reporting, and acceptable use of communication platforms. Ensure these policies are clearly communicated and regularly reviewed.

Regular Security Audits

Conduct periodic security audits to assess the effectiveness of existing defenses, identify potential vulnerabilities in systems and processes, and ensure compliance with security policies.

Establish an Incident Response Plan

Have a well-defined incident response plan specifically addressing phishing and BEC scenarios. This plan should outline steps for containment, investigation, eradication, recovery, and post-incident analysis, ensuring a swift and organized reaction to minimize damage.

Clear Communication Protocols

Define clear protocols for how sensitive information and financial requests should be communicated and authorized within the organization. Ensure employees understand these protocols and recognize requests that deviate from them as potential red flags.

Final Words

While not the most common form of phishing overall, executive phishing attacks like CEO fraud are highly targeted and can have a disproportionately negative impact on individuals and businesses. If you receive messages from people you don’t know, requests that seem unusual or urgent, or communications about situations that don’t seem immediately real, don’t be hasty to click links, open files, or comply with instructions.

You could very well be targeted by an executive phishing attack. By staying vigilant, implementing robust technical defenses, and fostering a security-aware culture supported by clear procedures, you can significantly reduce the risk of falling victim. Follow our tips to protect yourself and your organization.

About
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Ahona Rudra

Domain & Email Security Expert at PowerDMARC

Ahona is the Marketing Manager at PowerDMARC, with 5+ years of experience in writing about cybersecurity topics, specializing in domain and email security. Ahona holds a post-graduation degree in Journalism and Communications, solidifying her career in the security sector since 2019.

Executive Phishing Attacks – Practical Insights & Prevention Strategies