Hyderabad-based Pharma Dr Reddy’s loses Rs 2.16 cr after fraudsters hack their email communication
In a statement, Dr Reddy's Laboratories clarified that with timely detection and swift action by the company's teams and banking partners, the funds have been frozen and that there was no financial loss
Bengaluru: The Bengaluru police have launched a probe into a cyber fraud case where hackers allegedly infiltrated the official email communication between city-based Group Pharmaceuticals and Dr Reddy’s Laboratories, Hyderabad, successfully diverting a payment of Rs 2.16 crore to a fraudulent account.
However, in a statement, Dr Reddy’s Laboratories clarified that with timely detection and swift action by the company’s teams and banking partners, the funds have been frozen and that there was no financial loss.
According to an FIR registered by the Cyber Crime Police Station, Bengaluru City, the fraud was reported by Mahesh Babu K, a senior executive with Group Pharmaceuticals. The company stated it was expecting a payment of Rs 2.16 crore from Dr Reddy’s Laboratories for goods supplied. “During the course of their business, they had supplied goods to Dr Reddy’s Laboratories, and were due to receive a payment of Rs 2.16 crore,” the FIR stated.
However, on November 3, hackers allegedly gained unauthorised access to the email communication between the two companies and sent fraudulent emails to Dr Reddy’s finance and accounts team, impersonating officials of Group Pharmaceuticals and providing false bank account details, it said. “As a result, Dr Reddy’s Laboratories transferred the payment of Rs 2.16 crore on November 4 to the fraudulent bank account,” it added.
The complainant requested the police to immediately freeze the fraudulent account and recover the misappropriated amount. Based on the complaint, a case was registered on November 5 against unknown cyber fraudsters under relevant sections of the Information Technology Act and sections 318(4) (cheating) and 319(2) (cheating by personation) of the Bharatiya Nyaya Sanhita, a senior police officer said.
Citing preliminary investigations, the officer said the fraudulent account was traced to Vadodara in Gujarat and that the primary account into which the fraudulent amount was transferred has been frozen, police said, adding that the matter is under further investigation.
Dr Reddy’s Laboratories claimed, “The incident in question involved impersonation of a vendor’s email address with the intent to redirect a legitimate payment. With timely detection and swift action by our teams and banking partners, the funds have been frozen, and there has been no financial loss to the Company or to the vendor.”
