Update Regarding Outflow of Funds at Toshiba US Subsidiary
November 11, 2022
As announced on August 10, 2022, in the middle of July 2022 a US Subsidiary of Toshiba Corporation (“Subsidiary”) suffered an outflow of funds amounting to approximately US$3.6 million (approximately 500 million yen), due to fraudulent instructions being received from a third party who represented himself as a senior executive of Toshiba. The Subsidiary has recorded a loss of approximately 500 million yen in the second quarter of fiscal year 2022.
After recognizing that it had been subjected to fraud, the Subsidiary filed reports with law enforcement authorities in the US and in Hong Kong, where the funds were transmitted. The Subsidiary is continuing to take measures to freeze and recover the funds, in full cooperation with the authorities.
Given the seriousness of the incident, Toshiba has implemented corrective measures, and will continue to take steps to reinforce internal controls and group governance, including implementation of further preventative measures and group-wide corrective training.