CEO fired after firm loses millions following email scam

CEO fired after firm loses millions following email scam

FACC, an Austrian aerospace manufacturer, has fired its CEO, Walter Stephan, after losing €50million (£38.5million) in a business email compromise scam at the beginning of the year.

The scam impersonates an executive – preferably a finance one – and tricks the recipient into transferring vast sums of money into an account controlled by the hacker.

At the time FACC said: “Today, it became evident that FACC has become a victim of a crime act using communication [and] information technologies. The management Board has immediately involved the Austrian Criminal Investigation Department and engaged a forensic investigation. The correct amount of damage is under review.

"The damage can amount to roughly €50million [£38.5million]. The cyberattack activities were executed from outside of the company.”

Subsequently, Stephan was deemed culpable and fired, although his role in the scam has not been detailed – On the Wire reports.

A statement released by the company last week said: “In the supervisory Board meeting, held on 24 May 2016, Walter Stephan (CEO) was revoked by the supervisory Board as Chairman of the management Board of FACC with immediate effect for important reason.

"The supervisory Board came to the conclusion, that Walter Stephan has severely violated his duties, in particular in relation to the ‘Fake President Incident’. Robert Machtlinger was appointed as Interim CEO of FACC.”

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