A leading Indian pharmaceutical company has fallen prey to a massive cyber fraud amounting to ₹22.31 crore. The fraud came to light when the company’s finance department attempted to verify a transaction made to a US-based company.
An official of the Central Regional Cyber Police Station said that the 41-year-old senior manager of the complainant company had given a written complaint to the police, after investigating which an FIR has been registered in this case and further investigation is being done.
How Did the Fraud Happen?
According to the complaint received by the Mumbai Cyber Police’s Central Regional Cyber Police Station, the company's senior manager and vice president of the finance department received an email from an alleged Head of International Operations on October 27, 2023.
The email claimed that there were tax-related issues with a recent payment made by the company, and hence, the funds needed to be refunded. Soon after, another email was received, purportedly from the company's accounting manager, providing new bank account details, including an account number at Fifth Third Bank, USA.
Believing the request to be genuine, the complainant company transferred USD 6,161,336 (₹51.30 crore) through a SWIFT transaction to the mentioned bank account.
How Was the Fraud Detected?
When the company officials reached out to the US company’s Head of International Operations, they denied making any such refund request.
Upon investigating the emails, it was discovered that fraudsters had used a fake domain resembling the original one to mislead the company.
Investigation and Recovery Efforts
After uncovering the fraud, the pharmaceutical company lodged complaints with the local police in the US (Parsippany-Troy Hills PD) and the FBI (Federal Bureau of Investigation).
With assistance from US and Indian banking authorities, the company managed to recover ₹28.98 crore on March 15, 2024.
Currently, legal proceedings are underway to recover the remaining ₹22.31 crore. The company has also engaged private cybersecurity firms, Alvarez & Marsal and PwC, to assist in the investigation.
This incident serves as a significant warning for the corporate world, as cybercriminals are now using fake emails and cloned domains to dupe companies. Experts suggest that organizations must verify the authenticity of emails before processing any high-value financial transactions.