AI Company Reports $250,000 Stolen in Cyberattack

AI firm iLearningEngines has reported a cyberattack that resulted in the theft of $250,000 through a misdirected wire payment, revealing the breach in an 8-K filing with the U.S. Securities and Exchange Commission (SEC) on Monday. The company disclosed that a hacker accessed its network, misdirected the wire transfer, and deleted several email messages.

While the breach has been contained, the stolen funds have not been recovered, and iLearningEngines has launched an internal investigation with the assistance of external cybersecurity firms. The company’s cybersecurity response plan was activated immediately upon discovery of the incident.

Although the company stated that recovery costs will impact its short-term finances, it does not expect the event to significantly affect its annual results. However, it acknowledged ongoing risks, including potential litigation, regulatory scrutiny, and changes in customer or investor behaviour. iLearningEngines, which reported $135.5 million in revenues last quarter, provides automation solutions to over 1,000 companies in sectors such as healthcare, education, and retail.

This type of cyberattack, known as business email compromise (BEC), continues to be a significant threat to companies globally. BEC schemes often target organisations that manage wire transfers, tricking employees into sending funds to hacker-controlled accounts. According to the FBI, BEC scams led to $2.9 billion in losses in 2023 alone.

The breach follows a wave of similar attacks, with major financial losses reported recently, including a $60 million theft from a supplier of carbon products and a school district in Tennessee also falling victim to cybercriminals.