A lawsuit has been filed against JPMorgan by the French manufacturer of Ray-Ban glasses, Essilor, for allegedly failing to prevent suspicious transactions that resulted in a $272 million theft from its New York account.
Essilor claims in its New York lawsuit that JPMorgan should have detected, reported, and blocked these unusual payments made during the latter months of 2019. Cybercriminals reportedly recruited one of Essilor’s employees in Thailand to facilitate the fraudulent activity, escalating regular monthly transfers from $15 million to $100 million.
The company argues that JPMorgan disregarded multiple warning signs from the atypical transaction patterns. Specifically, Essilor points out that all cash transfers were made in round dollar amounts, a significant change from previous periods when such transfers were infrequent. Additionally, the funds were transferred to shell companies at regional banks located in high-risk areas.
Essilor has recovered all but $100 million of the stolen amount. JPMorgan has chosen not to comment on the lawsuit.
In a recent letter to shareholders, JPMorgan’s CEO Jamie Dimon highlighted the bank’s commitment to protecting clients’ assets and security, emphasizing its focus on reducing fraud and cyber risk.