When appointed as a part time Finance Director or interim Finance Director, one of the early things we look at is control over the payments systems. We came across this article and were amazed where scams were moving to. We thought it would be of interest to our clients and contacts.

British engineering giant Arup was tricked by a sophisticated scam targeting a finance team member in its Hong Kong office. The scam involved a fake video conference call with what seemed to be Chief Financial Officer Rob Boardman and other senior staff. These individuals were faux and were created using artificial intelligence (AI), but they looked and sounded real.

The finance employee was convinced by the fake meeting and transferred millions of pounds to the scammers’ accounts without getting approval from senior managers. In total, HK$200 million (£20.4m) was transferred in 15 separate transactions.

Arup reported that the scam cost the company £20m, as fake voices and images tricked the finance worker into thinking they were interacting with real Arup staff. The fraud was discovered in January and reported to the Hong Kong police. In February, the police informed local reporters that a finance worker from an unnamed multinational company had been deceived into transferring money after attending a video conference call with deepfakes of the CFO and other staff.

A spokesperson for Arup based in London confirmed to CNN that the company had been scammed. In a statement, the spokesperson said: “Unfortunately, we cannot provide details as the incident is still being investigated. However, we can confirm that fake voices and images were used. Our financial stability and business operations were not affected, and none of our internal systems were compromised.”

In January, the UK’s cybersecurity agency cautioned that AI is making it increasingly challenging to distinguish phishing messages, which deceive users into revealing passwords or personal information.

This incident underscores the importance of having robust internal controls and seeking professional financial guidance. Engaging with experts such as a Part time financial director or Interim financial director can provide essential oversight to prevent such scams. Companies might also benefit from the insights of Profit consultants and Turn around consultants to safeguard their financial operations. In addition, working with a Company doctor or a cash flow specialist can ensure that businesses maintain healthy financial practices and resilience against fraud.

If you are considering using the services of a part time Finance Director or interim Finance Director get in touch with us today on [email protected] or ring us on 01628-623444.