Investment fund loses $6 million in BEC scam, suspends operations

Sep 19, 2016


By Steve Ragan

A lawsuit filed on Friday by Tillage Commodities Fund alleges that SS&C Technology showed an egregious lack of diligence and care, when they fell for an email scam that ultimately led to hackers in China looting $5.9 million.

Tillage says that SS&C didn’t follow their own policies, which enabled the theft, but they actually assisted the criminals by fixing transfer orders that had initially failed.

The lawsuit was filed early Friday morning, and the documents were posted online by the law firm representing Tillage in the case.

“That SS&C is outside the purview of regulatory scrutiny and attempts to contractually exculpate itself from all but intentional wrongdoing creates a real issue for the whole industry,” said Lisa Solbakken, managing partner of Arkin Solbakken & counsel to Tillage.

CNBC covered the basics, but reading the allegations, it’s clear that this case isn’t just about the theft, it’s about a systemic breakdown in corporate policy with regard to data and asset security.

According to SS&C, who was the administrator for Tillage’s fund, access to customer financials and information is “restricted and is controlled by identification, authentication and authorization control processes that are based on least privilege, need-to-do, need-to-know purposes.”

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