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Showing posts with label Financial Loss. Show all posts
Liquidity Pool
Cyber Security Finance Sector Financial Loss Flash Loan Flash Loan Attack Illicit Trade Liquidity Pool

Makina Finance Loses $4M in ETH After Flash Loan Price Manipulation Exploit

 

One moment it was operating normally - then suddenly, price feeds went haywire. About 1,299 ETH vanished during what looked like routine activity. That sum now exceeds four million dollars in value. The trigger? A flash loan attack targeting Makina Finance, built on Ethereum. Not a hack of code - but an economic twist inside the system. Security teams such as PeckShield traced moves across the DUSD–DUSDC liquidity pool. Borrowed funds flooded in, shifting valuations without breaking access rules. Prices bent under pressure from artificial trades. Afterward, profits drained off-chain. What stayed behind were distorted reserves and puzzled users. No stolen keys. No failed signatures. Just manipulation riding allowed functions too far. 

The exploit started, researchers say, with a $280 million flash loan taken in USDC. Of that amount, roughly $170 million went toward distorting data from the MachineShareOracle, which sets values for the targeted liquidity pool. With prices artificially raised, trades worth around $110 million passed through the system - leaving over 1,000 ETH missing afterward. What happened fits a known pattern: manipulating value via temporary shifts in market depth. Since Makina's setup depended on immediate price points, sudden influxes of borrowed funds were enough to warp them. Inserting capital, pushing valuations up, then pulling assets out while gains lasted exposed a flaw built into how prices are calculated.  

Even though the exploit worked, the hacker did not receive most of the stolen money. A different actor, an MEV builder, stepped in ahead during the draining transaction and took nearly all the ETH pulled out. According to PeckShield, this twist could make getting back the assets more likely. Yet, there has been no public word from Makina on whether they have reached out to - or even found - the MEV searcher responsible. 

After reviewing what happened, Makina explained the vulnerability only touched its DUSD–DUSDC Curve pool, leaving everything else untouched. Security measures kicked in across all Machines - its smart vault network - as checks continue into how deep the effects go. To stay safe, users putting liquidity in that specific pool got a heads-up to pull out whatever they had left. More details will come once the team learns more through their ongoing review. 

Not long ago, flash loan attacks started showing up more often in DeFi. By October, the Bunni exchange closed for good following one such incident - $8.4 million vanished fast. Its team said restarting safely would mean spending too much on checks and oversight. Just weeks before, another hit struck Shibarium, a layer-two system. That breach pulled out $2.4 million in value almost instantly. 

Even so, wider trends hint at slow progress. Chainalysis notes that losses tied to DeFi stayed modest in 2025, though value held in decentralized systems climbed back near earlier peaks. Despite lingering dangers from flash loans, safeguards within the space seem to be growing more resilient over time.
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United Kingdom
Co-op Data Breach Financial Loss retailers United Kingdom

Co-op Faces Heavy Financial Losses Following April Cyberattack

 



The Co-operative Group in the United Kingdom has revealed the extent of the damage caused by the cyberattack it suffered earlier this year. In its interim financial report for the first half of 2025, the company announced an £80 million (about $107 million) drop in operating profit, attributing the decline directly to the April breach.

According to the report, the losses can be broken down into two areas: around £20 million spent on immediate recovery efforts and another £60 million lost in sales while core systems were out of service. The disruption also drove down overall revenue by £206 million ($277 million). Co-op expects recovery-related expenses to continue, with an additional £20 million likely to be recorded in the second half of 2025.


The Attack and Data Theft

In late April, Co-op had to take parts of its IT network offline after detecting suspicious activity. The incident was later confirmed to be the work of affiliates linked to Scattered Spider, operating in connection with the DragonForce ransomware group. Although the attack was stopped before files could be encrypted, the intruders managed to steal personal details of all 6.5 million members, including both current and past customers.

The U.K.’s National Crime Agency arrested four individuals between the ages of 17 and 20 in July in connection with the breach. The same suspects are also believed to have played a role in cyberattacks against other well-known retailers, including Marks & Spencer and Harrods, during the same period.


Operational Disruptions

The breach created major technical problems that forced Co-op to rebuild its Windows domain controllers, which are critical servers that manage access across its network. With automated systems unavailable, the group had to fall back on manual operations. Staff rerouted more than 350,000 product items to franchise partners and independent co-ops to help minimize the disruption. Discount vouchers were also offered to members during the outage.

Despite these efforts, the group experienced ongoing challenges, including shortages in certain product categories and steep drops in sales of items such as tobacco. The company explained that while the quick response reduced some of the damage, the weeks of system downtime and the loss of customer information took a substantial toll.


Financial Position 

Co-op emphasised that despite the losses, its overall financial position remains stable. The group has £800 million in available liquidity, which it says will allow it to continue operating without funding concerns while addressing long-term recovery. Executives stressed that the business remains focused on its broader goals even as it manages the fallout from the attack.

The April incident highlights how cyberattacks can have wide-ranging consequences beyond stolen data, disrupting daily operations, reducing consumer trust, and inflicting heavy financial costs. For Co-op, the road to recovery will continue into the second half of 2025.



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Stolen Data
AI Cyber Security Financial Loss IT Professional organisation Stolen Data

Cybersecurity: The Top Business Risk Many Firms Still Struggle to Tackle

 



Cybersecurity has emerged as the biggest threat to modern enterprises, yet most organizations remain far from prepared to handle it. Business leaders are aware of the risks — financial losses, reputational harm, and operational disruptions but awareness has not translated into effective readiness.

A recent global survey conducted in early 2025 across North America, Western Europe, and Asia-Pacific highlights this growing concern. With 600 respondents, including IT and security professionals, the study found that while executives admit to weak points in their defenses, they often lack a unified plan to build true resilience.


Where businesses fall short

Companies tend to focus heavily on protecting their data, ensuring quality, security, and proper governance. While crucial, these efforts alone are not enough. A resilient business must also address application security, identity management, supply chain safeguards, infrastructure defenses, and the ability to continue operations during an attack. Unfortunately, many firms still fall behind in tying all these dimensions into a cohesive strategy.


Why this matters now

Cyberattacks are no longer rare, one-off incidents. Nearly two-thirds of the organizations surveyed experienced at least one damaging cyber event in the past year. About one-third suffered multiple breaches in that period. These attacks caused not just stolen data but also costly downtime, compliance issues, and long-lasting damage to trust.

The survey’s findings revealed that:

• 38% of organizations faced major operational disruption, with outages and downtime hitting productivity hardest.

• 33% reported financial losses linked directly to an attack.

• Around 30% to 31% saw personal or sensitive data exposed or compromised.

• Nearly a quarter of cases involved data corruption or encryption that could not be fully reversed.

• Legal consequences, public backlash, and compliance failures added further damage.

The message is clear: cybersecurity is not just a technical concern, it is a business survival issue.


The study also shows that three once-separate areas are beginning to merge. Backup and recovery systems, once viewed as insurance, are now central to cyber resilience. Cybersecurity tools are extending beyond perimeter defense to include recovery and continuity. At the same time, data governance and compliance pressures have become inseparable from security practices.

As artificial intelligence gains ground in enterprise operations, this convergence is likely to intensify. AI requires clean, reliable data to function, but it also introduces fresh security risks. Companies that cannot safeguard and recover their data risk losing competitiveness in an economy increasingly powered by digital intelligence.


No safe corners in digital infrastructure

Attackers are methodical and opportunistic. They exploit weak points wherever they exist whether in data systems, applications, or even AI workloads. Defenders must therefore strengthen every layer of their infrastructure. Yet, according to the survey, most organizations still leave gaps that skilled adversaries can exploit.

Cybersecurity is now the most significant risk enterprises face. And while business leaders are no longer in denial about the threat, too many remain underprepared. Building resilience requires more than just securing data; it demands a comprehensive, ongoing effort across every layer of the digital ecosystem.



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Ransomwares
Cyber Attacks Cyber Breach Cyber Defenses Data protection financial attack Financial Loss Ransomware attack Ransomwares

Fourlis Group Confirms €20 Million Loss from IKEA Ransomware Attack

 

Fourlis Group, the retail operator responsible for IKEA stores across Greece, Cyprus, Romania, and Bulgaria, has revealed that a ransomware attack targeting its systems in late November 2024 led to significant financial losses. The cyber incident, which coincided with the busy Black Friday shopping period, disrupted critical parts of the business and caused damages estimated at €20 million (around $22.8 million). 

The breach initially surfaced as unexplained technical problems affecting IKEA’s e-commerce platforms. Days later, on December 3, the company confirmed that the disruptions were due to an external cyberattack. The attack affected digital infrastructure used for inventory restocking, online transactions, and broader retail operations, mainly impacting IKEA’s business. Other brands under the Fourlis umbrella, including Intersport and Holland & Barrett, were largely unaffected.  

According to CEO Dimitris Valachis, the company experienced a loss of approximately €15 million in revenue by the end of 2024, with an additional €5 million impact spilling into early 2025. Fourlis decided not to comply with the attackers’ demands and instead focused on system recovery through support from external cybersecurity professionals. The company also reported that it successfully blocked a number of follow-up attacks attempted after the initial breach. 

Despite the scale of the attack, an internal investigation supported by forensic analysts found no evidence that customer data had been stolen or exposed. The incident caused only a brief period of data unavailability, which was resolved swiftly. As part of its compliance obligations, Fourlis reported the breach to data protection authorities in all four affected countries, reassuring stakeholders that personal information remained secure. Interestingly, no known ransomware group has taken responsibility for the attack. This may suggest that the attackers were unable to extract valuable data or are holding out hope for an undisclosed settlement—though Fourlis maintains that no ransom was paid. 

The incident highlights the growing risks faced by digital retail ecosystems, especially during peak sales periods when system uptime is critical. As online platforms become more central to retail operations, businesses like Fourlis must invest heavily in cybersecurity defenses. Their experience reinforces the importance of swift response strategies, external threat mitigation support, and robust data protection practices to safeguard operations and maintain customer trust in the face of evolving cyber threats.
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synthetic ID fraud
AI tools Cyber Security Financial Loss Identity Fraud KYC SSN synthetic ID fraud

How Synthetic Identity Fraud is Draining Businesses


 

Synthetic identity fraud is quickly becoming one of the most complex forms of identity theft, posing a serious challenge to businesses, particularly those in the banking and finance sectors. Unlike traditional identity theft, where an entire identity is stolen, synthetic identity fraud involves combining real and fake information to create a new identity. Fraudsters often use real details such as Social Security Numbers (SSNs), especially those belonging to children or the elderly, which are less likely to be monitored. This blend of authentic and fabricated data makes it difficult for organisations to detect the fraud early, leading to financial losses.

What Is Synthetic Identity Fraud?

At its core, synthetic identity fraud is the creation of a fake identity using both real and made-up information. Criminals often use a legitimate SSN paired with a fake name, address, and date of birth to construct an identity that doesn’t belong to any actual person. Once this new identity is formed, fraudsters use it to apply for credit or loans, gradually building a credible financial profile. Over time, they increase their credit limit or take out large loans before disappearing, leaving businesses to shoulder the debt. This type of fraud is difficult to detect because there is no direct victim monitoring or reporting the crime.

How Does Synthetic Identity Fraud Work?

The process of synthetic identity fraud typically begins with criminals obtaining real SSNs, often through data breaches or the dark web. Fraudsters then combine this information with fake personal details to create a new identity. Although their first attempts at opening credit accounts may be rejected, these applications help establish a credit file for the fake identity. Over time, the fraudster builds credit by making small purchases and timely payments to gain trust. Eventually, they max out their credit lines and disappear, causing major financial damage to lenders and businesses.

Comparing Traditional VS Synthetic Identity Theft

The primary distinction between traditional and synthetic identity theft lies in how the identity is used. Traditional identity theft involves using someone’s complete identity to make unauthorised purchases or take out loans. Victims usually notice this quickly and report it, helping prevent further fraud. In contrast, synthetic identity theft is harder to detect because the identity is partly or entirely fabricated, and no real person is actively monitoring it. This gives fraudsters more time to cause substantial financial damage before the fraud is identified.

The Financial Impact of Synthetic Identity Theft

Synthetic identity fraud is costly. According to the Federal Reserve, businesses lose an average of $15,000 per case, and losses from this type of fraud are projected to reach $23 billion by 2030. Beyond direct financial losses, businesses also face operational costs related to investigating fraud, potential reputational damage, and legal or regulatory consequences if they fail to prevent such incidents. These widespread effects calls for stronger security measures.

How Can Synthetic Identity Fraud Be Detected?

While synthetic identity fraud is complex, there are several ways businesses can identify potential fraud. Monitoring for unusual account behaviours, such as perfect payment histories followed by large transactions or sudden credit line increases, is essential. Document verification processes, along with cross-checking identity details such as SSNs, can also help catch inconsistencies. Implementing biometric verification and using advanced analytics and AI-driven tools can further improve fraud detection. Collaborating with credit bureaus and educating employees and customers about potential fraud risks are other important steps companies can take to safeguard their operations.

Preventing Synthetic Identity Theft

Preventing synthetic identity theft requires a multi-layered approach. First, businesses should implement strong data security practices like encrypting sensitive information (e.g., Social Security Numbers) and using tokenization or anonymization to protect customer data. 

Identity verification processes must be enhanced with multi-factor authentication (MFA) and Know Your Customer (KYC) protocols, including biometrics such as facial recognition. This ensures only legitimate customers gain access.

Monitoring customer behaviour through machine learning and behavioural analytics is key. Real-time alerts for suspicious activity, such as sudden credit line increases, can help detect fraud early.

Businesses should also adopt data minimisation— collecting only necessary data—and enforce data retention policies to securely delete outdated information. Additionally, regular employee training on data security, phishing, and fraud prevention is crucial for minimising human error.

Conducting security audits and assessments helps detect vulnerabilities, ensuring compliance with data protection laws like GDPR or CCPA. Furthermore, guarding against insider threats through background checks and separation of duties adds an extra layer of protection.

When working with third-party vendors businesses should vet them carefully to ensure they meet stringent security standards, and include strict security measures in contracts.

Lastly, a strong incident response plan should be in place to quickly address breaches, investigate fraud, and comply with legal reporting requirements.


Synthetic identity fraud poses a serious challenge to businesses and industries, particularly those reliant on accurate identity verification. As criminals become more sophisticated, companies must adopt advanced security measures, including AI-driven fraud detection tools and stronger identity verification protocols, to stay ahead of the evolving threat. By doing so, they can mitigate financial losses and protect both their business and customers from this increasingly prevalent form of fraud.


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Ransomware
BlackSuit Customer Data Data Breach Data Leak Financial Loss Ransomware

Private Data of 950K Users Stolen in BlackSuit Ransomware Attack

 

On April 10, 2024, a BlackSuit ransomware assault disclosed 954,177 personally identifiable information, forcing Young Consulting to send out data breach notifications. 

Young Consulting (formerly Connexure) is an Atlanta-based software solutions provider that specialises in the employer stop-loss marketplace. It helps insurance carriers, brokers, and third-party administrators manage, market, underwrite, and administer stop-loss insurance policies.

Earlier this week, the company began notifying nearly a million individuals about a data breach. Among them are Blue Shield of California subscribers whose data was stolen during a ransomware campaign carried out by BlackSuit earlier this year.

The network intrusion occurred on April 10, but the company only noticed it three days later when the perpetrators triggered the encryption of its systems. The subsequent investigation was completed on June 28, finding that the following information had been hacked: full names, Social Security numbers (SSNs), dates of birth, and insurance claim details. 

Those affected will receive free access to Cyberscout's 12-month complimentary credit monitoring service, which they can claim until the end of November 2024. 

According to security experts, potentially affected individuals should take full advantage of this offer immediately, as BlackSuit has already disclosed the stolen information on its darknet-based extortion portal. 

Users should also keep an eye out for unknown communications, phishing messages, fraud efforts, and requests for more information. The attackers claimed responsibility for the attack on Young Consulting on May 7. They followed through on their threats to publish the stolen data a few weeks later, most likely after failing to extort the software company. 

BlackSuit claimed to have leaked far more than what Young Consulting disclosed in notices to affected individuals, including business contracts, contacts, presentations, employee passports, contracts, contacts, family details, medical examinations, financial audits, reports, and payments, as well as various content from personal folders and network shares. 

BlackSuit's operations this year have resulted in enormous financial losses for American businesses, the most notable being the CDK Global outage. Earlier this month, CISA and the FBI claimed that BlackSuit is an updated version of Royal ransomware that has demanded over $500 million in ransom over the last two years.
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Technology
Artificial Intelligence Businesses Deep Fakes Financial Loss Scotland Technology

Why AI-Driven Cybercrime Could Be Your Business's Biggest Risk


 


The way technology keeps shifting its paradigm, the line between genuine interactions and digital deception is becoming increasingly difficult to distinguish. Today’s cybercriminals are leveraging the power of generative artificial intelligence (AI) to create more closely intricate and harder-to-detect threats. This new wave of AI-powered cybercrime represents a humongous challenge for organisations across the globe.

Generative AI, a technology known for producing lifelike text, images, and even voice imitations, is now being used to execute more convincing and elaborate cyberattacks. What used to be simple email scams and basic malware have developed into highly realistic phishing attempts and ransomware campaigns. Deepfake technology, which can fabricate videos and audio clips that appear genuine, is particularly alarming, as it allows attackers to impersonate real individuals with unprecedented accuracy. This capability, coupled with the availability of harmful AI tools on the dark web, has armed cybercriminals with the means to carry out highly effective and destructive attacks.

While AI offers numerous benefits for businesses, including efficiency and productivity, it also expands the scope of potential cyber threats. In regions like Scotland, where companies are increasingly adopting AI-driven tools, the risk of cyberattacks has grown considerably. A report from the World Economic Forum, in collaboration with Accenture, highlights that over half of business leaders believe cybercriminals will outpace defenders within the next two years. The rise in ransomware incidents—up 76% since late 2022— underlines the severity of the threat. One notable incident involved a finance executive in Hong Kong who lost $25 million after being deceived by a deep fake video call that appeared to be from his CFO.

Despite the dangers posed by generative AI, it also provides opportunities to bolster cybersecurity defences. By integrating AI into their security protocols, organisations can improve their ability to detect and respond to threats more swiftly. AI-driven algorithms can be utilised to automatically analyse code, offering insights that help predict and mitigate future cyberattacks. Moreover, incorporating deepfake detection technologies into communication platforms and monitoring systems can help organisations safeguard against these advanced forms of deception.

As companies continue to embrace AI technologies, they must prioritise security alongside innovation. Conducting thorough risk assessments before implementing new technologies is crucial to ensure they do not inadvertently increase vulnerabilities. Additionally, organisations should focus on consolidating their technological resources, opting for trusted tools that offer robust protection. Establishing clear policies and procedures to integrate AI security measures into governance frameworks is essential, especially when considering regulations like the EU AI Act. Regular training for employees on cybersecurity practices is also vital to address potential weaknesses and ensure that security protocols are consistently followed.

The rapid evolution of generative AI is reshaping the course of cybersecurity, requiring defenders to continuously adapt to stay ahead of increasingly sophisticated cybercriminals. For businesses, particularly those in Scotland and beyond, the role of cybersecurity professionals is becoming increasingly critical. These experts must develop new skills and strategies to defend against AI-driven threats. As we move forward in this digital age, the importance of cybersecurity education across all sectors cannot be overstated— it is essential to safeguarding our economic future and maintaining stability in a world where AI is taking the steering wheel.


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Singapore
Cyber Crime Cyber Fraud Financial Loss Impersonation Attack Meta Scams Singapore

Scammers Exploit Messaging Apps and Social Media in Singapore


 


Singapore is experiencing the dread of scams and cybercrimes in abundance as we speak, with fraudsters relying more on messaging and social media platforms to target unsuspecting victims. As per the recent figures from the Singapore Police Force (SPF), platforms like Facebook, Instagram, WhatsApp, and Telegram have become common avenues for scammers, with 45% of cases involving these platforms. 

There was a marked increase in the prevalence of scams and cybercrime during the first half of 2024, accounting for 28,751 cases from January to June, compared to 24,367 in 2023. Scams, in particular, made up 92.5% of these incidents, reflecting a 16.3% year-on-year uptick. Financial losses linked to these scams totaled SG$385.6 million (USD 294.65 million), marking a substantial increase of 24.6% from the previous year. On average, each victim lost SG$14,503, a 7.1% increase from last year.

Scammers largely employed social engineering techniques, manipulating victims into transferring money themselves, which accounted for 86% of reported cases. Messaging apps were a key tool for these fraudsters, with 8,336 cases involving these platforms, up from 6,555 cases the previous year. WhatsApp emerged as the most frequently used platform, featuring in more than half of these incidents. Telegram as well was a go-to resort, with a 137.5% increase in cases, making it the platform involved in 45% of messaging-related scams.

Social media platforms were also widely used, with 7,737 scam cases reported. Facebook was the most commonly exploited platform, accounting for 64.4% of these cases, followed by Instagram at 18.6%. E-commerce scams were particularly prevalent on Facebook, with 50.9% of victims targeted through this platform.

Although individuals under 50 years old represented 74.2% of scam victims, those aged 65 and older faced the highest average financial losses. Scams involving impersonation of government officials were the most costly, with an average loss of SG$116,534 per case. Investment scams followed, with average losses of SG$40,080. These scams typically involved prolonged social engineering tactics, where fraudsters gradually gained the trust of their victims to carry out the fraud.

On a positive note, the number of malware-related scam cases saw a notable drop of 86.2% in the first half of 2024, with the total amount lost decreasing by 96.8% from SG$9.1 million in 2023 to SG$295,000 this year.

Despite the reduction in certain scam types, phishing scams and impersonation scams involving government officials continue to pose serious threats. Phishing scams alone accounted for SG$13.3 million in losses, making up 3.4% of total scam-related financial losses. The SPF reported 3,447 phishing cases, which involved fraudulent emails, text messages, and phone calls from scammers posing as officials from government agencies, financial institutions, and other businesses. Additionally, impersonation scams involving government employees increased by 58%, with 580 cases reported, leading to SG$67.5 million in losses, a 67.1% increase from the previous year.

As scammers continue to adapt and refine their methods, it remains crucial for the public to stay alert, especially when using messaging and social media platforms. Sound awareness and cautious behaviour is non negotiable in avoiding these scams.


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