Kitchener, Ontario – Waterloo Brewing Ltd. (TSX: WBR) (“Waterloo Brewing” or the “Company“) today announced that it has been subject to a social engineering cyberattack by a sophisticated third party that resulted in a wire transfer of the Company’s funds to a fraudulent third party account. The incident occurred in early November and involved creditor employee impersonation and fraudulent wire transfer requests by such third party from the Company.
Upon becoming aware of the incident this week, the Company initiated an analysis of all other transaction activity across all bank accounts of the Company, as well as a review of its internal systems and controls, including its computer networks. The Company has engaged its third-party IT services provider to conduct an independent investigation of the Company’s systems and is working with its auditors and bank to ensure that appropriate steps have been taken to mitigate the chance of any future occurrences of similar cyberattacks. At this time, the Company does not believe that its systems were breached or that any personal information of its customers is at risk.
The Company has notified the appropriate authorities including local police services, the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) and the United States’ Finance Crimes and Enforcement Network (FinCEN). The Company is working with authorities in furtherance of their investigations as applicable.
To date, the Company has not recovered any of the approximately CDN$2.1 million wired to the fraudulent third-party account. While the Company is actively taking measures to recover the funds, there can be no assurance that such measures will result in the return of all or a portion of the misappropriated funds in a timely manner or at all.
The Company does not expect this incident to have a material impact on its business going forward or otherwise impact its near-term liquidity requirements or its ongoing operations.