What is CEO fraud and why is it an issue even for small businesses?

CEO fraud might sound like something that only happens to large multinationals—but it’s a growing issue for freelancers and small business owners. Cybercriminals are getting smarter and often target smaller firms, who tend to have weaker security and be less alert to this type of fraud.

But what exactly is CEO fraud? How can you spot it? And, more importantly, how can you protect yourself and your team?

What is CEO fraud?

CEO fraud, also known as “business email compromise (BEC)”, involves cybercriminals impersonating a company director, manager, or senior executive. They send an apparently legitimate email to an employee—often in finance—with instructions to make a payment to an external account.

The email often looks genuinely sent by the director. Fraudsters use techniques like:

• Imitating email addresses that closely resemble the real ones.
• Using LinkedIn or company website info to construct believable scenarios.
• Applying pressure (“this is urgent, complete the transfer by end of day”).

Before you know it, a significant amount has been wired to a criminal account.

Why small businesses are targeted too

It’s easy to assume only large companies fall victim to CEO fraud—but that’s not the case. SMEs and freelancers are especially appealing because:

• They often lack internal payment verification procedures.
• There’s typically no IT team to flag suspicious behaviour.
• Trust within small teams is high—something scammers exploit.

What’s more, small businesses are easy to research online. A quick look at your site or social profiles reveals who’s in charge, who handles accounts, and the tone of internal communication.

How to spot CEO fraud

Watch out for these red flags in emails or communications:

• Requests for urgent payments that deviate from standard processes.
• Email addresses that are subtly altered (e.g. @business.co instead of @business.com).
• Language or tone that doesn’t match the supposed sender’s typical style.
• Unexpected payment requests to foreign accounts or new vendors.

Also be wary of phone calls where someone claims to be an external partner supposedly contacting the executive team.

How to prevent CEO fraud

As a freelancer or small business owner, here’s what you can do to reduce the risk:

• Agree on clear procedures. Ensure all large payments are confirmed internally via a second channel—e.g. a phone call.
• Check senders carefully. Look beyond the name—verify the full email address.
• Use security software. Effective email protection can block suspicious senders and phishing attempts. Antivirus.eu offers tools that specifically guard against these types of cybercrime.
• Train yourself and your team. Cybersecurity starts with awareness. Regularly discuss these risks with employees or collaborators.
• Enable two-factor authentication. Secure not just your email, but also accounting software and other critical systems.

Conclusion

CEO fraud is a serious threat—even to smaller businesses. Being alert to warning signs and having clear internal protocols in place can save you from major losses. Digital protection plays a key role in this.

Looking for advice on which security software works best for your business? At Antivirus.eu, our specialists are ready to offer personalised support to help you make the right, practical choice. Explore your options with Antivirus.eu.