Orion S.A., a worldwide supplier of carbon black, has fallen victim to a multi-million dollar fraud. The company announced that fraudulent wire transfers totaling $60 million were made. In this massive fraud, an employee was targeted to facilitate a large number of fraudulent transactions. This was publicized in the company’s Form 8-K filed with the US Securities and Exchange Commission (SEC).

The massive fraud faced by Orion S.A. that cost 60 million dollars

According to a statement by Orion S.A., the fraudsters carried out a series of fraudulent wire transfers targeting a non-executive employee. The employee was directed by the fraudsters to transfer a total of $60 million to different accounts. Such scams are often carried out through a cyberattack known as a Business Email Compromise (BEC). This method relies on fraudsters creating a fake identity and tricking employees.

BEC attacks usually start with fraudsters hijacking or spoofing an executive’s email account. They then reach out to an employee with access to company funds and demand a confidential purchase or other urgent transaction. Such scams can be particularly effective in large companies, as many employees may not have met their managers directly and may mistake the scammers’ requests as genuine.

After learning about this major fraud, Orion S.A. launched a thorough investigation. The company said it found no other fraudulent transactions or theft of sensitive data. It also announced that law enforcement authorities have been notified about the incident and that various avenues are being considered to recover the funds, including insurance coverage.

The company’s insurance coverage can be critical to recovering some of the losses in such fraud cases. It is not yet clear how much Orion S.A. will benefit from insurance in this process.