The French manufacturer of Ray-Ban glasses is suing JPMorgan for failing to stop suspicious transactions after cybercriminals looted $272 million from its New York account.
JPMorgan should have detected, reported and blocked suspicious payments that occurred in the last few months of 2019, Essilor said in a lawsuit filed in New York on Monday.
The criminals had recruited one of its employees in Thailand to make the fraudulent transactions, which resulted in regular monthly transfers jumping from $15 million to $100 million.
Essilor Manufacturing says JPMorgan ignored the numerous red flags that should have been raised from the unusual pattern of transactions. The French firm says the cash transfers were all made “in round dollar amounts (i.e., no cents), which was a dramatic departure from prior periods where round dollar transfers were relatively infrequent.”
Furthermore, the money was deposited in shell companies at regional banks in high-risk jurisdictions, says the firm.
Essilor says it has so far recovered all but $100 million of the looted cash.
JPMorgan has declined to comment.
In his annual letter to shareholders earlier this month, chief executive Jamie Dimon boasted about the bank's ability to “protect clients’ assets and clients’ money in movement. They also help customers — from protecting their data and minimizing fraud and cyber risk.”