Toyota Supplier Scammed Out of $37 Million

Date: September 11, 2019
Source: Automotive News

Computer scammers have fleeced a major Japan-based Toyota supplier for $37.4 million through its European subsidiary.

Toyota Boshoku Corp., a closely affiliated parts producer for Toyota with operations around the world, issued a statement on Friday that it had discovered “fraudulent payment directions from a malicious third party” resulting in a loss of approximately four billion yen ($37.41 million).

The seating and interiors supplier said the incident took place on Aug. 14, but it did not provide specifics about how the fraud took place or over what period.

“We are devoting our utmost efforts to procedures for securing/recovering the leaked funds,” the company said in its statement.

Toyota Boshoku ranks No. 23 on the Automotive News list of the top 100 global suppliers with worldwide sales to automakers of $10.15 billion in 2018.

According to its statement, issued from its corporate headquarters in Kariya, Japan, the company recognized the likelihood that the payments were the result of criminal activity, and established a team of legal professionals that reported the loss to local investigating authorities.

The company is “cooperating in all aspects of the investigation,” the statement said.

The company said it would account for the losses in its year-end financial statements if necessary, but declined to provide additional details.

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