FACC Fires Their CEO After Cyber Fraud
On May 25th 2016, Reuters released an article about how FACC fires CEO after the company was caught with cyber fraud. FACC is an Austrian company that makes and manufactures aerospace parts. The cost of the cyber fraud totals up to about $47 million or 42 million euros. Once this occurred, there was an immediate meeting that was held on Tuesday with the supervisory board for FACC. The supervisory board decided to dismiss CEO Walter Stephan immediately after 14 hours of discussion.
To get an idea of who FACC supplies to, the company has customers that includes big companies such as Boeing and Airbus. It was on January 19th 2016 when a hacker posed at Stephan online and hold roughly 50 million euros.
In this specific incident the hacker posed as Stephan and requested for an employee to transfer money into an account for an acquisition project, only the acquisition project is considered fake. This scam is commonly referred to as the “fake president incident.”
Here is what FACC said about the incident.
“The supervisory board came to the conclusion that Mr. Walter Stephan has severely violated his duties, in particular in relation to the 'fake president incident.’”
The spokesman of the company has declined to disclose the details of how Stephan violated his role as the FACC CEO and no further comments were available from Stephan. In the meantime, Robert Mach linger has been appointed the interim chief executive.
Walter Stephan was not the only one to be dismissed. FACC also decided to dismiss its chief financial officer in February after the cyber-attack.
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