Medical cannabis company Cann loses $3.6mn in major cybersecurity breach

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A $3.6 million funds transfer by Cann Group to an overseas contractor building the company’s Mildura factory has been stolen a “complex and sophisticated cyber fraud” by an unknown hacker.

The company reported the breach to the stock market on Monday this week, saying it “experienced a cyber security incident, involving an unknown third party” that was discovered on February 4 and is currently under investigation.

The payment to the overseas contractor for work on the Mildura facility appears to have been diverted to an unknown account.

The business requested a trading halt on Friday ahead of the announcement.

Cann said it had moved to “ensure the integrity of its IT systems”

“The company and its overseas contractor are investigating the incident thoroughly, including the engagement of external security and forensic IT experts to assist,” The company said in a statement.

“The matter has been reported to police in Victoria, Australia, the Netherlands and Hong Kong, as well as the Office of Drug Control.”

Cann is also working with its bank to see if the payments can be halted and if any of the funds can be recovered, and has also notified its insurer about a potential claim.

We will cover further details as they emerge regarding this incident in the days to come. The incident is a remarkable one given the apparent ease with which the actor involved was able to transfer the money and the quantum of the single payment.

Ahmed Khanji

Ahmed Khanji

Ahmed Khanji is the CEO of Gridware, a leading cybersecurity consultancy based in Sydney, Australia. An emerging thought leader in cybersecurity, Ahmed is an Adjunct Professor at Western Sydney University and regularly contributes to cybersecurity conversations in Australia. As well as his extensive background as a security advisor to large Australian enterprises, he is a regular keynote speaker and guest lecturer on offensive cybersecurity topics and blockchain.

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