Dive Brief:
- AI training company iLearningEngines experienced a cyberattack resulting in a fraudulent wire transfer and stolen data, the company said Monday in a securities filing.
- An investigation into the attack determined “a threat actor illegally accessed the company’s environment and certain files on its network, misdirected a $250,000 wire payment and deleted a number of email messages,” iLearningEngines Interim CFO Bonnie-Jeanne Gerety said in the filing. “The wire payment has not been recovered.”
- The company said the incident will have a material impact on its operations during the quarter ending Dec. 31. It does not expect the incident to have a material impact on full year results.
Dive Insight:
The disclosure comes less than a month after the Securities and Exchange Commission issued a subpoena to probe potentially material weakness in the company’s internal controls over financial reporting.
Maryland-based iLearningEngines said it launched an internal investigation, worked with a forensic firm and other external advisors to assess and remediate the unauthorized activity.
The company said the incident is contained, though it did not say when or how it became aware of the cyberattack and did not respond to a request for comment.
The company warned investors it remains subject to risks due to the attack, including potential litigation, changes in customer or investor behavior and regulatory scrutiny.
The disclosure comes less than a month after the Securities and Exchange Commission issued a subpoena to probe potentially material weakness in the company’s internal controls over financial reporting.
iLearningEngines said in the Monday regulatory filing that previously issued reports and presentations describing the company’s financial results dating back to 2019 “should no longer be relied upon.”
The company said it has more than 1,000 enterprise customers spanning multiple industries, including healthcare, education, insurance, retail, energy and manufacturing.
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