Xoom Got 31 Million Dollars Stolen

[henryb]

Everbody's favorite money transfer service is generating some news today. Thieves transferred $30.8 million to overseas accounts on Dec 30. Criminal investigation is underway. CFO stepped down.

 

[Pensador]

WoW and ouch that really hurts.

 

[Dublin2BuenosAires]

30m is probably not material enough to sink them, but it's bad press alright.

 

[Sleuth]

My favorite quote "While this matter will result in some additional near-term expenses, the company does not expect this incident to otherwise have a material impact on its business"

Yes, some additional near-term expenses.

 

[EdRooney]

In the same announcement, they also raised their 4Q revenue estimate:

[font=Gotham Narrow SSm 4r']Xoom also raised its fourth-quarter revenue estimate to [/font][font=Gotham Narrow SSm 4r']$43.1 million-$43.6 million from $41 million-$43 million.[/font]

So they essentially lost ballpark 8% of their annual revenue, less whatever insurance covers for them. That wouldn't seem to be a death-knell, but still ain't good news.

 

[steveinbsas]

In the same announcement, they also raised their 4Q revenue estimate:

So they essentially lost ballpark 8% of their annual revenue, less whatever insurance covers for them. That wouldn't seem to be a death-knell, but still ain't good news.

It certainly wasn't good news for the CFO and stockholders should be unhappy, but it doesn't look like there was any compromise of customer data.and no one using XOOM to transfer funds has been affected.

I will continue to use XOOM and I will continue to keep a near zero balance in the account from which I make transfers...except for the day I actually make the transfers.

 

[TWB103]

Do customers lose anything or is it all insured?

 

[scotttswan]

Do customers lose anything or is it all insured?

I would presume all this means its all insured.

https://www.xoom.com/state-licensing

 

[steveinbsas]

Do customers lose anything or is it all insured?

'

Corporate funds were transferred to overseas accounts so XOOM's customers didn't lose anything.

From the article linked in the first post:

"The chief financial officer at Xoom Corp. stepped down Monday after the San Francisco company revealed that fraudsters had transferred $30.8 million in corporate cash to overseas accounts."

I would presume all this means its all insured.

https://www.xoom.com/state-licensing

State banking regulations - as well as any insurance which applies to customer funds - would not apply to the corporate funds that were surreptitiously transferred.

 

[ghost]

Damn them. They took it all out of my account. That hurts.