cyber fraud – Cyber Law Watch

A New Low: Red Cross subject to Fraudulent Claims for Bushfire Grants by Cyber Thieves

Mar 02 2020

If you thought cyber attackers couldn’t go any lower, think again. Cyber thieves are tying up valuable resources at the Australian Red Cross through computer generated applications for bushfire relief assistance, according to an article from the AAP.

According to the article, cyber thieves are using applications to automate hundreds of fraudulent attempts to access financial assistance from the Red Cross, which is distributing grants of up to $20,000 per application with a total grant of around $1,000,000 per day. In one community, there were applications made in respect of 15 homes that purportedly had been destroyed by bushfires, but when physically checked remained unaffected. Go figure!

Yes it can cost you your job…even if you are the boss!

May 31 2016

By Cameron Abbott and Giles Whittaker

The CEO of Austrian aerospace parts maker FACC, has been fired following a cyber fraud that cost the company 42 million euros (AUD $65 million). FACC also fired their CFO in February soon after the cyber fraud.

Executives are being held responsible for business’ cybersecurity measures, and while FACC declined to comment on the details of Walter Stephan’s shortcomings, their supervisory board concluded that Walter Stephan had “severely violate his duties, in particular in relation to the fake president incident”. It is likely that this violation is in reference to a lack of adequate cybersecurity procedures or protections, which would be considered essential for most businesses in this technologically integrated era.

So how was it done? The technique used to deceive FACC into handing over their money is known as a ‘fake president incident’. To put it simply, the hackers sent an email to an employee posing as the CEO, and requested that funds be transferred to a specified account for a fake acquisition project. It would appear the board figured it shouldn’t have been that easy.

More information about this cyber fraud can be found in an article by reuters.

Tag:cyber fraud