Lasco Financial Services Limited revealed that the bulk of its eightfold growth in bad debts related to burglary and cyber theft sometime in its most recent financial year ending March.
Meantime, the shareholders of Lasco Distributors Limited were told that the court’s decision on the damages to be paid under the Pfizer case was pending, in separate meetings on Friday.
Lasco Financial’s managing director Jacinth Hall-Tracey disclosed details about the hack, but assured shareholders at their annual general meeting that measures were put in place, including software upgrades, staff training and cyber insurance to prevent future occurrences.
Lasco Financial’s bad debts increased to $27.5 million as at March 2017 from $3.2 million a year earlier. The bulk of the increase related to the two events.
“We had a burglary at one of our cambio locations and currency totalling $1.4 million was stolen. This is currently under negotiation with our insurance company,” said Hall-Tracey. “We also had the lodgement of a malware in our money services system and this allowed cyber burglars to send transactions amounting to $11.5 million. This is currently also in an arrangement with MoneyGram to recover a portion of the loss,” she said.
Two-thirds of the company’s revenue comes from remittances via its MoneyGram agent network, which now totals 135 agents, following the addition of 20 agents during the year.