Ottawa’s Leonovus falls victim to bank fraud

cyber

Ottawa-based Leonovus says it’s been the victim of a “sophisticated bank fraud scam” and is looking into how badly the damages will affect its bottom line.

The local software-defined data storage company disclosed Monday it had lost some US$571,000 in a scam that it claims was orchestrated by parties in Singapore, Switzerland and Italy. Leonovus did not provide details on the nature of the scam.

The firm says in a statement that it’s working with Milan police to uncover the perpetrators and is awaiting news from its insurance providers to determine whether the loss will be covered, though the company says its ongoing operations will be unaffected.

Leonovus spent most of 2018 hiring R&D staff and working with customers on proofs of concept for its storage solutions, including some with the federal government. CEO Michael Gaffney told Techopia late last year that the company’s goal was to restart the flow of revenue this year after a prolonged dry spell.