FACC, an Austrian-based manufacturer of airplane parts, has fired its CEO, Walter Stephan, after this past January he fell victim to an email scam thatdefrauded the company of €52.8 million ($56.79 million).
The company made the announcement yesterday, along with its 2015-2016 financial year results, where it stated it managed to recoup €10.9 million of the stolen funds.
Nevertheless, the company reported total losses of €23.4 million for the whole financial year. A big chunk in this was the €40.9 million loss from the online scam incident.
Stephan was the company's long-time CEO
Stephan has been the company's CEO for the past 17 years, but a moment of negligence this past January cost him his cozy and well-paid job.
The FACC CEO fell for what's called a CEO Fraud incident, or Bogus Boss, Fake President, Whaling Attack or BEC (Business Email Scam). In these scams, one of the company's employees or executives receives a spoofed email made to look like it's coming from one of its bosses or fellow employees asking for urgent payment of a business transaction.
The scam works when employees break protocol and don't double-check via phone call or in person if the sender has requested to transfer large amounts of money.
FACC declined to reveal details of how the scam happened, but in February, the company also fired its CFO (Chief Financial Advisor). Robert Machtlinger will be replacing Stephan as FACC's new CEO.
Full Article: Company Fires CEO After Falling Victim to $56-Million Online Scam
The company made the announcement yesterday, along with its 2015-2016 financial year results, where it stated it managed to recoup €10.9 million of the stolen funds.
Nevertheless, the company reported total losses of €23.4 million for the whole financial year. A big chunk in this was the €40.9 million loss from the online scam incident.
Stephan was the company's long-time CEO
Stephan has been the company's CEO for the past 17 years, but a moment of negligence this past January cost him his cozy and well-paid job.
The FACC CEO fell for what's called a CEO Fraud incident, or Bogus Boss, Fake President, Whaling Attack or BEC (Business Email Scam). In these scams, one of the company's employees or executives receives a spoofed email made to look like it's coming from one of its bosses or fellow employees asking for urgent payment of a business transaction.
The scam works when employees break protocol and don't double-check via phone call or in person if the sender has requested to transfer large amounts of money.
FACC declined to reveal details of how the scam happened, but in February, the company also fired its CFO (Chief Financial Advisor). Robert Machtlinger will be replacing Stephan as FACC's new CEO.
Full Article: Company Fires CEO After Falling Victim to $56-Million Online Scam
