Toshiba Corporation (“Toshiba”) has reported that an employee of a US-based subsidiary (“Subsidiary”), acting on fraudulent instructions from a third party who represented himself as an executive of Toshiba, transferred approximately US$3.6 million (approximately 500 million yen) of the Subsidiary’s funds to a bank account in Hong Kong in mid-July.

The Subsidiary soon recognized that it had been subject to fraud, and filed a report with the legal authorities in the US and Hong Kong. Currently, the Subsidiary is taking measures to freeze and recover the funds, and is cooperating fully with the investigations.

The Subsidiary expects to record a loss in the 2nd quarter of fiscal year 2022, ending March 31, 2023, to cover the damage from this incident, with a maximum impact of approximately 500 million yen. Toshiba is unable to provide further details at this time to ensure the confidentiality of the investigation.