What seemed like a routine request by Mattel Inc.’s chief executive for a new vendor payment to China turned out to be an unauthorised $3 million (U.S.) transaction passing through China.
The scam Mattel fell victim to — known as the fake CEO or fake president scam — has cost companies, many of them American, more than $1.8 billion, according to the FBI. The FBI also observed that most of the stolen money passes through banks in China or Hong Kong.
Mounting evidence indicates that China is becoming a global banker for the money laundering economy, according to interviews with police officials, court records in the U.S. and Europe, and intelligence documents reviewed by the Associated Press.
While the mastermind of the scam has yet to be identified, Mattel managed to recover their funds with the help of Chinese authorities.
This article has been summarised, the full original article can be found at thestar.com