Phishing Attack Forces Investment Firm to Close

In another example of the adage “cyber risk is business risk”, Sydney-based hedge fund Levitas Capital recently shut down after a fake Zoom e-mail phishing attack resulted in multiple fraudulent wire transfer attempts.

After a fake Zoom invite was opened by one of the fund’s founders, the fraudulent invite planted malicious software on the Levitas network, allowing the hackers to take control of the Levitas email systems and create multiple fake invoices. The attackers then spoofed email approvals for the fake invoices, resulting in fraudulent wire transfers initially totaling more than $8.7 million. While the fund managed to stop some of these wires, over $800,000 was ultimately lost, and the business was forced to close when the fund’s biggest client withdrew its investments due to the cyberattack.

Phishing Attack Forces Hedge Fund Closure