New SEC Cyber Report Puts Spotlight On Accounting Controls
By George Garvey, Grant Davis-Denny, Nefi Acosta and Najee Thornton ( October 23, 2018, 1:28 PM EDT) -- Imagine you work as an accounts payable employee at a publicly traded company called Forevernet. Late on a Friday afternoon, as you prepare to depart for a long weekend, an email arrives from John.Thompson@forevemet.com. You know Thompson to be the chief financial officer of your company and in your haste to respond to his urgent email, you overlook the fact that the sender's email domain just barely changes the spelling of your company's actual domain, forevernet.com (substituting an "m" for an "rn"). The sender, posing as your CFO, informs you that a deal with an important foreign counterparty has been struck. He directs you to work with outside counsel, whom he has copied on the email, to make the necessary wire payment of $1.295 million before close of business. You haven't communicated with this outside attorney before. But the email domain, JonesHammmersmithllp.com, appears legitimate. So you reply all that you will be glad to facilitate the wire transfer, shortly thereafter receive wire instructions from the purported outside counsel, and promptly process the transaction....
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