Cann group has been reported recently subjected to a cyberattack, costing them more than $3.5M.

This Victoria-headquartered cannabis organization, known as the Cann Group, has been spending the past few years on the construction of two production factories, inclusive of a Mildura based facility. It is because of the construction services for this facility that the company shelled out more than $3.5M to an overseas contractor. 

However, in a statement issued by the company, the Cann Group figured that the payment was not made to the person who they thought was paying. 

Rather, the funding went to somebody who perpetuated a complex and refined cyber attack against the organization and the foreign contractor.

The identity of the cyber attacker is yet to be confirmed by the company that reports them as an “unknown third party.” A prompt reaction to the cyberattack has resulted in the company gearing and tightening cybersecurity around their IT systems. Whether the spent resources of the company are insured is yet to be determined, however, inquiries have been initiated to determine if it can issue a claim towards the insurance agency. 

Experts state that it is common for these types of cyberattacks to track money via Hong Kong before getting forwarded to mainland China but once the funds enter mainland China, it becomes tough to trail the money.

It is often observed that any cyberattack in Australia that poaches funds first route money in Australian bank accounts since the transfers are immediate. International transfers require 24 hours and by transferring domestically, threat actors can buy time to shift the money elsewhere while.

It is yet to be cleared which of the Cann or their third party supplier has been affected but Cann Group confirms that along with notifying the authorities of Victoria, The Netherlands, and Hong Kong, they are also consulting the office of Drug Control. They are also working with the bank to assess if any of the payments can be stalled and if any of the resources can be recovered.

I hope this article helps you in some way. If you are getting about the cyber attack – SolarWinds Software Attack Allegedly Perpetuated by Chinese Hackers.