National Biscuit Industries reports online fraudulent transaction

March 12, 2020

National Biscuit Industries Ltd on Wednesday announced that it has detected an online fraud activity involving payment to one of its suppliers.

In a disclosure filed to the Muscat Securities Market (MSM), National Biscuit Industries said that deceptive domains of the company as well as one of the company’s machinery suppliers were created by unauthorised persons with mala fide intention. It explained that email messages were unknowingly exchanged between employees of the company and the machinery supplier through such deceptive domain email IDs.

‘During this process, the company had received an email for the change of bank account of the supplier. After due verification of bank documents, a payment of €160,799 (around RO70,000) was transferred to the requested new bank account. The machinery was also received from the supplier in good working condition. Subsequently, the machinery supplier informed the company that they had neither requested change of bank account nor received the payment,’ National Biscuit Industries said. The company explained that after receiving the information about non-receipt of the payment, both parties become aware of the duplicity.

After becoming aware of the incident of fraud, both parties have approached authorities and filed a complaint in this regard with an aim to recover the amount.

‘Both parties have initiated legal measures, including informing law enforcement departments, to recover the amount and partially assessing a solution to resolve the matter amicably between both parties,’ the disclosure said.

Meanwhile, National Biscuit Industries is also taking steps to improve internal controls so that such incidents can be prevented in future. ‘The company has strengthened its internal control systems including IT control framework to avoid recurrence and minimize risks.’

Established in the year 1982, National Biscuit Industries Ltd is a joint stock company manufacturing biscuits, wafers and snacks in Oman.

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