Category Archives: Business Email Compromise

AIG must cover client’s $5.9 million in cyber-related losses, judge rules

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Insurance giant AIG must cover nearly $6 million in losses for a client that was fleeced by an email scam carried out by suspected Chinese hackers, a federal court has decided. A judge in the Southern District of New York ruled Wednesday that AIG was in breach of contract when it previously denied a claim from SS&C Technologies, a $6 billion financial technology firm. In 2016, hackers defrauded SS&C out of $5.9 million by sending spoofed emails that appeared to be from an SS&C client, Tillage Commodities, asking SS&C employees to transfer money. After SS&C carried out the transactions, Tillage took legal action, resulting in a settlement. While AIG covered SS&C’s court dispute with Tillage, SS&C also sought filed a claim seeking to have AIG cover the stolen $5.9 million. AIG denied the claim. The insurance company had argued its policy included an exclusion stipulating that SS&C was not covered […]

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Lithuanian scammer gets 5 years for defrauding Google, Facebook of $120 million

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A Lithuanian man’s scheme to steal more than $120 million from Facebook and Google has earned him 60 months in U.S. federal prison. A federal judge in Manhattan handed down the sentence Thursday to Evaldas Rimasauskas, who pleaded guilty in March to orchestrating a phishing plan that allowed him to pose as a Taiwanese technology manufacturer, then collect money transfers from the U.S. technology giants. Rimasauskas created domains spoofing Quanta — a contractor that actually did build servers and other components for Facebook and Google — then sent fraudulent invoices, directing the companies’ employees to wire the fake Quanta real money. The activity occurred between 2013 and 2015, during which time Rimasauskas, now 51, netted $99 million from Facebook and $23 million from Google. A judge in the U.S. Southern District of New York ordered the Lithuanian man to pay that money back, along with the five years in prison and two years […]

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Feds Crack Down on Money Mules, Warn of BEC Scams

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Authorities say they have halted over 600 domestic money mules – exceeding the 400 money mules stopped last year. Continue reading Feds Crack Down on Money Mules, Warn of BEC Scams→

News Wrap: Authorities Target Evil Corp., Imminent Monitor, Money Mules

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In this past week, the authorities have cracked down on various BEC scams and cybercrime gangs. Continue reading News Wrap: Authorities Target Evil Corp., Imminent Monitor, Money Mules→

Scammers dupe Chinese venture capitalists out of $1 million with the ‘ultimate’ BEC heist

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Scammers fleeced a Chinese venture capital firm out of a $1 million payment meant for a startup by using malicious emails to steal the cash, according to new findings from Check Point Technologies. As part of the scheme, thieves posed as employees from an Israeli company hoping to raise seed funding from Chinese venture capitalists. By using email addresses that appeared remarkably similar to the actual startup, thieves posed as real Israeli employees in communications with an account manager at the Chinese investment firm. It was only after the $1 million payment went through when the actual startup realized it hadn’t received its payment, and the Chinese VC firm began to understand it’s money was gone. Check Point did not identify either company by name in a blog post Thursday, saying only the incident occurred early in 2019. Unlike a traditional business email compromise, when hackers infiltrate a high-level corporate […]

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