The San Jose, Calif.-based networking firm Ubiquity Networks Inc. reported that cyber thieves recently stole $46.7 million from the firm through a scam that's becoming more common, in which fraudsters fake executive communications to instigate unauthorized wire transfers.
The scam, also known as "CEO fraud" or the "business email compromise" (BEC), typically targets businesses that work with foreign suppliers or regularly perform wire transfer payments.
Ubiquity disclosed the attack in a quarterly financial report filed with the U.S. Securities and Exchange Commission. The company said it discovered the fraud incident on June 5, 2015, which involved employee impersonation and fraudulent requests from an outside entity, and targeted the company's finance department.
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Roy Urrico
Roy W. Urrico specializes in articles about financial technology and services for Credit Union Times, as well as ghostwriting, copywriting, and case studies. Also: writer/editor of a semi-annual newsletter for Association for Financial Technology since 1997 and history projects funded by the U.S Interior Department, National Park Service and Warren County (N.Y.).
