The pharmaceutical industry has been rocked by a major cyber fraud case, with Mumbai-based Alkem Laboratories suffering a financial loss of Rs 22.31 crore due to an elaborate scam. Fraudsters posed as executives from Alkem’s U.S. subsidiary, Ascend Laboratories LLC, to execute the scheme.

According to a Hindustan Times report, the incident began on October 27, 2023, when Alkem’s Mumbai office received an email seemingly from Amit Ghare, the head of international operations at Ascend Laboratories. The email claimed that a recent payment to Alkem would lead to significant tax liabilities. To circumvent these taxes, the company was asked to refund the amount to a different bank account.

On November 17, 2023, another email, allegedly from Mary Smith, Ascend Laboratories' accounting manager, provided details of a U.S.-based bank account for the refund. Acting on these instructions, Alkem’s treasury manager, Manoj Mishra, transferred Rs 51.30 crore to the specified account via a SWIFT transaction.

The fraud came to light on November 15, 2023, when Alkem received another email, supposedly from Ghare, requesting a refund of Rs 90 crore. Growing suspicious, Alkem officials contacted Ghare, who confirmed he had not sent the request. Further investigation revealed that the earlier emails originated from compromised email accounts with subtle alterations in the email addresses.

According to HT, U.S. authorities were able to recover Rs 28.98 crore from the stolen amount, which was returned to Alkem. However, the company still suffered a loss of Rs 22.31 crore.

Alkem Laboratories has reported the incident to the authorities, and an ongoing investigation aims to identify and apprehend the fraudsters while recovering the remaining funds. The company has also implemented enhanced cybersecurity measures to safeguard against similar threats, as reported by The Free Press Journal.

Alkem Laboratories, a prominent pharmaceutical company, is grappling with a cybersecurity issue involving a Rs 52 crore fraudulent transfer. The company had taken steps to protect itself by teaming up with Check Point Software Technologies in November 2023 to prevent cyber attacks. 

The recent breach allowed unauthorised access to email accounts of some employees in one of Alkem's subsidiaries. Although the company is investigating, specific details about the incident are not disclosed. 

Despite the breach, Alkem Laboratories assured that the amount involved didn't surpass certain predefined limits. In the financial realm, the company reported a strong performance with an operating revenue of Rs 2,634.6 crore and a net profit of Rs 646.5 crore for the quarter ending September 2023. 

This incident highlights the ongoing challenges businesses face in the digital age. Even a well-established company like Alkem is not immune to cyber threats, emphasising the need for increased awareness and security measures in today's interconnected world. Following the cybersecurity incident at Alkem Laboratories, the company took proactive steps by enlisting an external agency to investigate the matter. The investigating agency submitted a detailed report to the Board of Directors, emphasising that the impact of the incident was confined to the previously mentioned amounts. 

In a move towards transparency and good governance, the Board of Directors, during their meeting on January 12, 2024, decided to disclose the cybersecurity incident to the stock exchanges. The decision, rooted in the principles of openness and accountability, aims to keep stakeholders informed about the situation. 

While the investigation's conclusion indicated that the impact was limited, the company recognizes the importance of sharing such incidents for the sake of transparency. This move aligns with industry best practices and demonstrates Alkem Laboratories' commitment to keeping shareholders and the public well-informed about developments that could affect the company's operations and reputation. 

Addressing the cybersecurity incident, Alkem Laboratories clarified that it did not stem from any fraudulent activities involving promoters, directors, key managerial personnel, or any staff within the company or its subsidiary. The company affirmed its commitment to ethical practices and reported taking necessary steps, including filing complaints with relevant governmental and regulatory authorities. 

In November 2023, Alkem Laboratories strategically partnered with Check Point Software Technologies, a Nasdaq-listed cybersecurity solutions company, to strengthen defences against cyber threats. This collaboration aimed to shield the pharmaceutical company's facilities from potential cyber attacks. 

As the company works out the aftermath of the cybersecurity breach, it remains dedicated to transparency and accountability. The assurance that the incident was not internally driven, coupled with proactive measures taken alongside Check Point Software Technologies, underscores Alkem Laboratories' commitment to prioritising cybersecurity and maintaining stakeholder trust. 

In an era where cybersecurity threats are on the rise, such actions not only serve to address the immediate situation but also contribute to the broader conversation around the need for robust cybersecurity measures in the corporate landscape. The disclosure to stock exchanges stresses upon the company's dedication to ethical business practices and maintaining trust with its stakeholders.