Orion, a leading Luxembourg-based supplier of carbon black, has fallen victim to a significant business email compromise (BEC) scam, resulting in an estimated $60 million in stolen funds. The company, known for producing carbon black used in various industrial applications such as tires and plastics, disclosed the incident in a recent filing with the Securities and Exchange Commission (SEC). The breach, discovered on a recent Saturday, involved an employee being deceived into executing multiple fraudulent wire transfers to accounts controlled by cybercriminals.
The company’s spokesperson revealed that the scam was perpetrated by criminals who manipulated the employee into making these transfers, which were directed to unknown third-party accounts. The impact of the theft has led Orion to anticipate a one-time pre-tax charge of approximately $60 million for the unrecovered funds. As the company grapples with this significant financial loss, it has initiated a law enforcement investigation and is exploring all available legal avenues to recover the stolen money, including insurance claims.
The incident underscores the escalating threat of business email compromise scams, which have increasingly targeted organizations by impersonating executives or other key figures to persuade financial departments to authorize unauthorized transfers. According to the FBI, BEC fraud was one of the most damaging types of internet crime in 2023, with losses totaling $2.9 billion. Scammers often use sophisticated methods, including phishing and compromised vendor email accounts, to execute these fraudulent schemes.
Despite some success in recovering stolen funds and arresting perpetrators, BEC and email account compromise scams continue to pose a significant threat. The FBI reports that over $43 billion was lost through such scams between 2016 and 2022. As law enforcement agencies work to address these threats, businesses are advised to remain vigilant and implement robust security measures to protect against similar attacks.
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