Rs 22 Crore Gone in a Click: Pharma Giant Alkem Labs Falls Victim to Cyber Fraud
Mumbai: Cyber fraud has sent shockwaves through the pharma sector as Alkem Laboratories, a Mumbai-based pharmaceutical company, recently became a victim of a sophisticated cyber scam, resulting in a loss of Rs 22.31 crore. The perpetrators impersonated officials from Alkem's U.S. subsidiary, Ascend Laboratories LLC, to carry out the fraud.
According to a recent media report in the Hindustan Times, on October 27, 2023, Alkem's Mumbai office received an email purportedly from Amit Ghare, the head of international operations at Ascend Laboratories. The email claimed that Ascend Laboratories would incur substantial taxes on a recent payment made to Alkem.
To avoid these taxes, the email instructed Alkem to refund the amount to a new bank account. Subsequently, on November 17, 2023, another email, allegedly from Mary Smith, Ascend Laboratories' accounting manager, provided details of the U.S.-based bank account for the refund. Acting on these communications, Alkem's treasury manager, Manoj Mishra, transferred Rs 51.30 crore to the specified account via a SWIFT transaction.
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The fraud was uncovered on November 15, 202d, when Alkem received another email, purportedly from Ghare, requesting a refund of Rs 90 crore. Suspicious of the request, Alkem officials contacted Ghare, who confirmed he had not sent such an email. Further investigation revealed that the earlier emails were sent from compromised accounts, with slight alterations in the email addresses. HT reports that the U.S. police managed to seize approximately Rs 28.98 crore from the defrauded amount, which was refunded to Alkem Laboratories. Effectively, Alkem Laboratories was cheated of Rs 22.31 crore.
Alkem Laboratories has reported the matter to the authorities, and investigations are ongoing to apprehend the culprits and recover the remaining funds. The company has also initiated internal measures to enhance cybersecurity protocols to prevent future incidents, reports The Free Press Journal.
