That sure sounds like a line from pathological liar Tommy Flanagan, a character played by funnyman Jon Lovitz on Saturday Night Live back in the day. But it turns out that may have been pretty much what happened to Ubiquiti Networks Inc.
In a recent SEC filing, San Jose-based Ubiquiti revealed that an “employee impersonation and fraudulent requests from an outside entity targeting the Company’s finance department” resulted in the transfer of $46.7 million from a Hong Kong subsidiary to third-party overseas accounts. The network services company said it first learned of the fraud June 5.
Data security guru Brian Krebs describes that kind of attack as “CEO fraud.” Although Ubiquiti didn’t provide further details about exactly what happened in the scam it faced, Krebs says CEO fraud “usually begins with the thieves either phishing an executive and gaining access to that individual’s inbox, or emailing employees from a look-alike domain name that is one or two letters off from the target company’s true domain name. For example, if the target company’s domain was ‘example.com’ the thieves might register ‘examp1e.com’ (substituting the letter ‘L’ for the numeral 1) or ‘example.co,’ and send messages from that domain.”
Ubiquiti said it has managed to recover $8.1 million of the improperly transferred funds and expects to regain another $6.8 million that is subject to an injunction. But that leaves the company and law enforcement agencies chasing a not insignificant $31.8 million.
To keep up with the constantly evolving world of privacy and security sign up for the Bloomberg BNA Privacy and Security Update.
All Bloomberg BNA treatises are available on standing order, which ensures you will always receive the most current edition of the book or supplement of the title you have ordered from Bloomberg BNA’s book division. As soon as a new supplement or edition is published (usually annually) for a title you’ve previously purchased and requested to be placed on standing order, we’ll ship it to you to review for 30 days without any obligation. During this period, you can either (a) honor the invoice and receive a 5% discount (in addition to any other discounts you may qualify for) off the then-current price of the update, plus shipping and handling or (b) return the book(s), in which case, your invoice will be cancelled upon receipt of the book(s). Call us for a prepaid UPS label for your return. It’s as simple and easy as that. Most importantly, standing orders mean you will never have to worry about the timeliness of the information you’re relying on. And, you may discontinue standing orders at any time by contacting us at 1.800.960.1220 or by sending an email to email@example.com.
Put me on standing order at a 5% discount off list price of all future updates, in addition to any other discounts I may quality for. (Returnable within 30 days.)
Notify me when updates are available (No standing order will be created).
This Bloomberg BNA report is available on standing order, which ensures you will all receive the latest edition. This report is updated annually and we will send you the latest edition once it has been published. By signing up for standing order you will never have to worry about the timeliness of the information you need. And, you may discontinue standing orders at any time by contacting us at 1.800.372.1033, option 5, or by sending us an email to firstname.lastname@example.org.
Put me on standing order
Notify me when new releases are available (no standing order will be created)