Risk Alert - Directors' & Officers' (D&O) Lawsuit results from Social Engineering Losses

Risk Alert - Directors' & Officers' (D&O) Lawsuit results from Social Engineering Losses

In 2016, the CEO of FACC, a Chinese owned, Austrian-based aerospace parts manufacturer, was duped in a social engineering scheme that ultimately cost the company approximately €52.8M. The Chief Executive Officer, Walter Stephan, received an email purporting to be from another senior employee at FACC. Mr. Stephan believed that the email was legitimate, and then acted on its instruction – ultimately leading FACC financial controllers to wire approximately €52.8M to fraudsters over numerous transfers.