Whaling Scams Explained: What Retailers Must Know in 2026

Whaling scams—a sophisticated form of phishing—are increasingly targeting senior retail executives, putting finances, operations, and reputations at risk. Learn how these attacks work, the warning signs, and how retailers can protect themselves.

What’s Happening with Whaling Scams

Unlike broad phishing campaigns, whaling scams focus on “big targets”—CEOs, CFOs, business owners, and other top decision-makers. Attackers impersonate trusted executives or vendors using emails that are highly personalized and require immediate attention. These messages often reference real projects, suppliers, or financial activities, making them difficult to spot at first glance.

Retailers are particularly attractive targets due to high transaction volumes, frequent vendor payments, and distributed teams handling finance and operations. The goal is usually financial—unauthorized wire transfers or payments—but sensitive data and login credentials are also common targets.

How Whaling Scams Work

Whaling scams may look spontaneous, but they’re usually the result of careful planning.

Here’s how these attacks typically unfold:

• Research and profile executives: Cybercriminals gather information from company websites, LinkedIn, press releases, and social media to understand their targets.
• Impersonate trusted sources: Attackers spoof or compromise executive email accounts or create lookalike domains that appear legitimate.
• Send high-pressure requests: Teams—often in finance or accounting—receive confidential, time-sensitive messages that push them to act quickly.
• Target payments and sensitive data: Requests may involve wire transfers, gift card purchases, or sharing confidential documents.
• Act fast to avoid detection: Once funds or data are obtained, they’re quickly moved, making recovery extremely difficult.

Who’s Targeted

Although executives are the primary targets for impersonation, whaling scams rarely affect just one person—they often involve multiple teams across the retail organization, such as:

• Retail business owners
• C-suite executives and senior leadership (including chief executive officers (CEOs), chief financial officers (CFOs), and other senior leaders)
• Finance and accounting teams
• Vendors and trusted partners

Anyone involved in approving payments, managing financial systems, or handling sensitive information can become part of the attack chain.

Red Flags Retailers Should Watch For

Whaling scams use urgency and authority to pressure teams—but there are warning signs retailers can catch early.

• Urgent or high-pressure requests for wire transfers, payments, or sensitive data.
• Unusual sender email addresses, subtle typos, or lookalike domains.
• Requests that bypass normal approval procedures or demand immediate action without verification.
• Refusal to verify requests by phone or in person.
• Emails sent at unusual times or outside normal business hours.
• Tone inconsistencies that don’t match how an executive typically communicates.

What Retailers Should Do to Prevent Whaling Scams

Whaling scams rely on speed and pressure, but the right safeguards can stop them before damage is done.

Here are key steps retailers can take:

• Train employees—especially those handling payments or sensitive data—to recognize executive impersonation scams.
• Verify time-sensitive requests through a second channel, such as a known phone number or separate email thread.
• Require executive-level verification for wire transfers, gift cards, and other high-risk transactions.
• Strengthen email security with spam filtering, domain monitoring, and sender checks.
• Limit public exposure of executive details across websites, press releases, and social media.
• Block and report whaling scam emails immediately once identified.
• Adopt identity-based verification tools and promote a “verify before you act” culture.
• Run simulated whaling attacks to test preparedness and reinforce best practices.

If You’ve Been Affected

Even with safeguards, whaling scams can slip through.

Here’s how retailers should respond immediately:

• Take a close look at internal processes to figure out how the breach happened.
• Alert employees and stakeholders right away to prevent further problems.
• Bring in a cybersecurity expert to help identify weaknesses and strengthen defenses.
• Learn from the incident to update policies and reduce the risk of future attacks.

Where to Report Whaling Scams

Retailers should report whaling incidents promptly to limit damage and support investigations.

Reporting may include:

• Federal Bureau of Investigation (FBI) – Internet Crime Complaint Center (IC3)
• Federal Trade Commission (FTC)
• Bank or payment provider
• Email provider or internal IT/security team
• Local law enforcement or cybercrime authorities