"On June 5, 2015, the Company determined that it had been the victim of a criminal fraud," Ubiquiti Networks reports. "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."After discovering the compromise, Ubiquiti Networks initiated legal proceedings that enabled it to successfully recover $8.1 million of the monies transferred. The company is also hoping to recover an addition $6.8 million, which is currently subject to legal injunction. At this time, Ubiquiti Networks does not believe it will receive insurance coverage for this scam. However, after conducting an independent investigation of its networks, the company has determined that no internal intrusion took place and that no corporate, financial, or account information was compromised. These findings give Ubiquiti Networks optimism for the future.
"While this matter will result in some additional near-term expenses, the Company does not expect this incident to have a material impact on its business or its ability to fund the anticipated working capital, capital expenditures and other liquidity requirements of its ongoing operations."Users are urged to avoid free web-based email, carefully decide what to post to social media and to company websites, and implement additional security features (such as two-factor authentication) in order to avoid becoming a victim of a BEC scam.