Cann Group recovers $1.2m in stolen funds after cyber fraud

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Cann Group recovers $1.2m in stolen funds after cyber fraud

Lost $3.6m in February.

Australian medical cannabis company Cann Group has recovered $1.2 million lost through a payment scam earlier this year after instigating court proceedings.

Cann Group is a Melbourne-based research facility which cultivates, manufactures and supplies medical cannabis for Australian and approved international use.

In early February, Cann Group lost roughly $3.6 million to an third-party who intercepted payments meant for an overseas contractor working on Cann’s Mildura facility.

At the time of the incident, the ASX-listed company blamed “a complex and sophisticated cyber fraud” [pdf] and said it was working with its bank to potentially halt future payments.

Cann Group also took “immediate action” to “ensure the integrity of Cann’s IT systems” and implemented a trading halt.

By late Match, the company had begun civil proceedings against the third party, Er Ya Trade, in Hong Kong in an effort to recover the lost funds.

It was subsequently granted an injunction from the Hong Kong High Court to freeze assets against Er Ya Trade.

Cann Group said on Friday it had recieved $1.2 million in connection with the court proceedings, with criminal investigations continuing in a number of jurisdictions.

The incident was reported to authorities in Victoria, the Netherlands and Hong Kong, as well as Australia's Office of Drug Control.

The company stressed, however, that there was no guarantee of recovering further funds or securing prosecutions against any of the third parties involved.

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