Cyberthieves Steal $46.7 Million From Ubiquiti

Ubiquiti either has terrible luck or really angry adversaries.

A few years back they suffered an insane counterfeit crisis complete with goofy gangsters.

Now, Ubiquiti is disclosing that $46.7 million has been stolen by cyberthieves.


> 10% of the cash on hand. 25% of last year's profits. Ouch!

At least they got 15 million back so far.

On June 5, 2015, the Company determined that it had been the victim of a criminal fraud. The incident involved employee impersonation and fraudulent requests from an outside entity targeting the Company’s finance department. This fraud resulted in transfers of funds aggregating $46.7 million held by a Company subsidiary incorporated in Hong Kong to other overseas accounts held by third parties. As soon as the Company became aware of this fraudulent activity it initiated contact with its Hong Kong subsidiary’s bank and promptly initiated legal proceedings in various foreign jurisdictions. As a result of these efforts, the Company has recovered $8.1 million of the amounts transferred. Furthermore, an additional $6.8 million of the amounts transferred are currently subject to legal injunction and reasonably expected to be recovered by the Company in due course. The Company is continuing to pursue the recovery of the remaining $31.8 million and is cooperating with U.S. federal and numerous overseas law enforcement authorities who are actively pursuing a multi-agency criminal investigation. The Company may be limited in what information it can disclose due to the ongoing investigation. The ultimate amount of the loss will depend, in part, on the Company’s success in recovering the funds. The Company may not be successful in obtaining any insurance coverage for this loss.

I don't see why they shouldn't be able to recover most of the money, unless it was a real long time (weeks) before they realized.

OK, it's a Hong Kong bank that had received the initial funds. But the problem is how do you get hard cash out of that? In the United States for instance, any cash transaction > $10,000 in a given day draws the instant scrutiny of the feds.

To get it out like that would require 5,000 withdrawls!

Either a lot of days or a lot of accounts...

I don't know what the laws are in Hong Kong, but still a person not known to the bank is going to have a hard time walking out with $1,000,000 in a case, right?

I take a stab at it and say > 75% recovery in the end. Any other guesses?