Feeds

NEC accuses hungry, thirsty worker of stealing $300m

A man has to eat

SANS - Survey on application security programs

NEC this week warned that it will need to restate past financial results after a worker allegedly booked some $310m in faked transactions over three years. The reason for such abuse? NEC claims the worker wanted the money for "drinking and eating".

You can't make this stuff up.

In a lengthy statement, NEC accuses an unnamed male employee in its semiconductor design group of creating a string of "fictitious transactions." The worker would allegedly create a fake purchase order, push it through NEC's accounting system and then weirdest of all actually receive payments for the products from customers.

"The false transactions relate to certain sales of products, which were actually not delivered, and were fabricated by creating fictitious 'round-trip' transactions among NEC Engineering and its vendors and purchasers," NEC said. "The fictitious transactions were first recorded in March 2002 and recorded repeatedly until December 2005."

Oddly, NEC never explains why a customer would pay for made up product. The customers, however, appeared impressed with the fake gear with all of them paying for the equipment on time, according to NEC.

NEC management caught wind of the sketchy transactions and kicked off an internal investigation into the matter. The company hired independent lawyers and accountants to sort through the mess.

"Based on these findings, NEC Engineering will take any necessary actions, including filing criminal actions, against the employee," NEC said.

NEC plans to restate its financial results once auditors have finished looking into the matter, and the company vowed to institute tighter financial controls.

According to Japanese media, NEC claimed that the employee said he needed the extra money for "drinking and eating." A diet of caviar stuffed panda lips and champagne soaked aye-aye testicles can be very expensive. ®

SANS - Survey on application security programs

Whitepapers

Securing web applications made simple and scalable
In this whitepaper learn how automated security testing can provide a simple and scalable way to protect your web applications.
3 Big data security analytics techniques
Applying these Big Data security analytics techniques can help you make your business safer by detecting attacks early, before significant damage is done.
The benefits of software based PBX
Why you should break free from your proprietary PBX and how to leverage your existing server hardware.
Mainstay ROI - Does application security pay?
In this whitepaper learn how you and your enterprise might benefit from better software security.
Combat fraud and increase customer satisfaction
Based on their experience using HP ArcSight Enterprise Security Manager for IT security operations, Finansbank moved to HP ArcSight ESM for fraud management.