August 17 - Konecranes has confirmed that one its foreign subsidiaries has become the victim of fraud.
The perpetrators have, through identity theft and other fraudulent actions, managed to induce the subsidiary to make unwarranted payments totalling up to EUR17.2 million (USD19.1 million).
Konecranes has reported the crime to the police authorities in the relevant countries and is working closely with the authorities to recover its losses and to bring the perpetrators of the fraud to justice.
Konecranes has a crime insurance covering the whole group of companies in which the sum insured is EUR10 million (USD11.1 million).
Since the potential losses caused by the fraud are extraordinary costs, which do not affect Konecranes' ability to generate operating profit, they will not affect the 2015 financial guidance previously published by Konecranes, says the company.
Konecranes added that it hopes this information will also help other companies to avoid becoming victims of similar crimes. In light of the ongoing police investigations, and to maximise its chance of success, Konecranes is not releasing further information on the incident at this stage.