Pepco Group, a prominent European retailer operating across 21 countries, has fallen victim to a sophisticated phishing attack at its Hungary branch. The attack resulted in a staggering €15.5 million in losses before any potential recovery efforts could be initiated. While Pepco is actively pursuing various avenues, including collaboration with banking partners and law enforcement, to retrieve the funds, the outcome remains uncertain at this stage.
Notably, the incident appears to be isolated to financial transactions, with no indication of customer, supplier, or colleague data compromise. Nonetheless, Pepco is taking immediate measures to thoroughly investigate the breach and fortify its IT and financial control systems group-wide. The company’s commitment to maintaining the integrity of its operations underscores the seriousness of the situation and its dedication to mitigating future risks.
Despite the setback, Pepco reassures stakeholders of its robust financial standing, boasting access to over €400 million in available liquidity and a continuous generation of strong cash flow from operations. However, Irene Coyle, Chief Operating Officer at OSP Cyber Academy, suggests the incident likely involved business email compromise, highlighting the need for enhanced cybersecurity measures across organizations. Pepco emphasizes its commitment to transparency and pledges to provide further updates as the investigation progresses and security measures are reinforced.
