HAL’s Rs 55 Lakh Loss Due to Cyber Fraud in Fighter Jet Procurement

HAL lost Rs 55 lakh to a cyber fraud where a fake email replaced the legitimate vendor’s email during a parts procurement process for fighter jets. The incident has led to a police investigation under the IT Act, revealing the need for improved cybersecurity measures.

Hindustan Aeronautics Limited (HAL) suffered a financial loss of approximately Rs 55 lakh ($63,000) due to a cyber fraud incident. On March 13, Ashok Kumar Singh, HAL’s Additional General Manager, reported the fraud to the police, leading to the registration of a case under the Information Technology (IT) Act.

In May 2024, HAL sought quotes for three fighter aircraft parts from a US company. The company initially communicated through a legitimate email address, but during the exchange, a fake email address, differing only by the absence of the letter “e,” was introduced.

As a result of this oversight, HAL unknowingly transferred funds to a fraudulent account. The vendor later confirmed non-receipt of payment, highlighting the breach. Police investigations are ongoing to determine if the fraud was executed by another US company or an Indian entity.

HAL’s experience underscores the importance of cybersecurity measures in supply chain communications, especially in high-stakes transactions. The introduction of a fraudulent email highlights vulnerabilities in electronic correspondence protocols. Enhanced vigilance and confirmation procedures are essential to mitigate similar risks in the future.

Original Source: www.ndtv.com