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Europe's Biggest Wire Manufacturer Defrauded of $44.6 million



Leoni AG, Europe’s largest supplier of wires, cables, optical fibers and wiring systems, has fallen victim to the now infamous “business email scam” (BEC). The company has been forced to admit to having been defrauded of $44.6 million
The company’s main business is in supplying wiring and cables for the automative industry – its biggest contracts are with BMW, Mercedes and Rolls Royce. Leoni generated over $5 billion in group sales in 2015 and has over 75,000 employees in 32 countries but the scammers only needed to find one careless financial officer asleep at the wheel. With a carefully worded email they were able to convince that CFO to transfer funds to the wrong bank account. 
The fraudsters were meticulous in their choice of correspondent within Leoni. They sent a carefully written email to CFO at Leoni’s Bistrita factory purporting to come from one of the company’s top German executives. The factory in Bistrita was the only entity amongst the four Romanian factories authorized to transfer funds. The Bistrita branch manufactures wiring and cables for the popular Mercedes Benz E-Class vehicles.
The manner in which the email was worded suggests that they had extensive knowledge of the internal procedures for approving and transferring funds. According to unconfirmed reports the money was moved to an account in the Czech Republic.

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