February 3, 2016 / 8:21 AM / 4 years ago

UPDATE 1-Austria's FACC fires CFO in wake of cyber fraud attack

* FACC to reorganise financial department after cyber attack

* Supervisory board searching for new CFO

* FACC says fake identity was used for fraudulent actions (Adds detail, background)

VIENNA, Feb 3 (Reuters) - Austrian aerospace parts manufacturer FACC, which recently became the target of cyber fraud, said on Wednesday it was terminating the mandate of its finance chief with immediate effect.

“The management board is fundamentally reorganising the financial department and pursuing damages and insurance claims,” FACC said in a statement.

The company, whose clients include Airbus and Boeing, said on Jan. 19 it had become the target of cyber fraud and that hackers managed to steal around 50 million euros ($54.57 million).

That far exceeds average cost of data breach — which is at $3.8 million, according to a study by data security research organisation Ponemon Institute — and is equivalent to around 12 percent of FACC’s third-quarter revenues.

“To the current state of the forensic and criminal investigations, the criminal activities which targeted the financial accounting department were fraudulent actions involving the use of a fake identity,” FACC said in its statement.

It confirmed that the IT infrastructure, data security, intellectual property (IP) rights as well as the operational business of the group were not affected.

While searching for a successor for CFO Minfen Gu, the supervisory board appointed its member Yongshen Wang to the management board on an interim basis.

On Tuesday, Austria Telekom said its mobile internet service was hit by a cyber attack.

$1 = 0.9163 euros Reporting by Kirsti Knolle; Editing by Maria Sheahan

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