The CEO of Austrian aerospace parts maker FACC, has been fired following a cyber fraud that cost the company 42 million euros (AUD $65 million). FACC also fired their CFO in February soon after the cyber fraud.
Executives are being held responsible for business’ cybersecurity measures, and while FACC declined to comment on the details of Walter Stephan’s shortcomings, their supervisory board concluded that Walter Stephan had “severely violate his duties, in particular in relation to the fake president incident”. It is likely that this violation is in reference to a lack of adequate cybersecurity procedures or protections, which would be considered essential for most businesses in this technologically integrated era.
So how was it done? The technique used to deceive FACC into handing over their money is known as a ‘fake president incident’. To put it simply, the hackers sent an email to an employee posing as the CEO, and requested that funds be transferred to a specified account for a fake acquisition project. It would appear the board figured it shouldn’t have been that easy.
More information about this cyber fraud can be found in an article by reuters.