Capillary Technologies subsidiary loses €3 million in cyber fraud
Capillary Technologies announced that a subsidiary has been defrauded of €3 million through a cyber-enabled banking fraud employing deepfake technology and social engineering. The company has recovered some funds and is pursuing legal action.
Capillary Technologies, a SaaS company, has reported that one of its acquired step-down subsidiaries fell victim to a cyber-enabled banking fraud, resulting in a loss of €3 million (approximately ₹32.7 crore).
The fraudulent transfer of funds to an unauthorized third-party bank account reportedly utilized advanced deepfake methods, including cloning, signature forgery, and social engineering to impersonate senior management. The exploit occurred shortly before July 3.
Capillary Technologies has initiated legal and operational measures to recover the lost funds, collaborating with law enforcement, cybercrime authorities, and affected banks. The company confirmed that €450,000 has already been recovered, and suspected fraudulent accounts have been identified and frozen by the relevant banks, reducing the overall risk.
The company stated that its customer data and technological infrastructure remain uncompromised despite the incident. Capillary Technologies' recent acquisitions include MasterCard's customer engagement platform SessionM and the Canadian martech platform Kognitiv.