Pearl Software Blog

Internet Monitoring and Web Filtering Topics

CEO Spoofed – Loses Company $47 Million then Fired.

An FACC employee wired 50 million euros after receiving emailed instructions from someone posing as FACC’s CEO.  This forced the company to report a financial loss to investors which would have otherwise shown net positive earnings.  FACC, whose customers include Airbus (EPA: AIR), Boeing (NYSE: BA) and Dassault (AM:EN), fired its CEO after he "severely violated his duties".  The company’s CFO was also terminated.
 
The scam is known as the “Fake President” fraud.  By using a fake email address that resembles that of the President’s, the scammer convinces an employee, usually working in the finance department, to make an bank wire transfer to a third party on the grounds of a debt to pay, a provision in contract or a purchase deposit.  The order is given with authority and urgency. The scammer has usually done enough research on the target company to give them the necessary arguments to convince the victim to act in accordance with the request. More...