HAL loses ₹55 lakh to cyber fraud: Here is how PSU-giant lost money to a ‘fake’ US-based aircraft parts seller

Defence and aerospace equipment manufacturer Hindustan Aeronautics Limited (HAL) became a victim of cyber fraud after scammers posed as a US-based firm, PS Engineering Inc., looking to sell aircraft parts, reported multiple media outlets.

According to the news report, this scam incurred an expense of ₹55 lakh as the Kanpur branch’s additional general manager filed a police complaint on March 13. 

How did HAL lose ₹55 lakh?

Hindustan Aeronautics’ Kanpur wing received an email from cybercriminals posing as a genuine US-based dealer. However, the officials failed to notice a catch in the email that cost the firm money.

According to multiple media reports, the State-owned firm’s Kanpur wing failed to notice the letter “e” in one of the email IDs, which was reportedly identical to the official email ID of an American importer.

Furthermore, the bank details were manipulated in the email, and the payment was rerouted to the criminals’ accounts. 

As the PSU giant, HAL often imports fighter jet equipment and components from foreign nations that are needed to make the finished products in India. In 2024, HAL was reportedly involved with the original PS Engineering Inc., looking to buy aircraft parts.

According to media reports, on May 3, 2024, HAL requested a quote for three specific components and also received an official response from the firm through the email “gledbetter@ps-engineering.com.”

However it was likely that the fraudsters were monitoring the email trail and then later created a fake email ID with the one “e” letter missing in the word engineering.

The fake email ID was engineering, jlane@ps-enginering.com. 

The Scam

The digital scammers, posing as genuine sellers, sent an email through this fake mail ID to the PSU defence equipment maker asking for a sum of $63,405 or nearly ₹55 lakh, as per the reports.

As the bank details were altered in the email ID, the funds were routed to the wrong account before anyone became aware of the scam. HAL realised that it was the prey of a digital scam after the US-based PS Engineering informed the company that they had not received any payment on the transaction.

After the alert from PS Engineering, HAL officials reviewed the transaction and found out that the email ID was fraudulent. Additional General Manager of HAL Kanpur Ashok Kumar Singh filed an FIR with the Cyber Police Station starting an investigation into the matter. 

“HAL got in touch with a US company, PS Engineering Incorporated, to buy aircraft parts. When the talks began there was a legitimate email ID. Somewhere in the middle, the proper email was replaced with a fake one. There was only one difference between the two IDs: the missing letter ‘e’,” DCP crime Anjali Vishwakarma told the news portal NDTV.

Investigations are still underway as it is still not clear if another US-based company defrauded HAL or if it was an Indian entity, as per the report.

HAL shares were trading 3.92 per cent higher at ₹3,574.40 during the afternoon session of Tuesday’s stock market, compared to ₹3,439.60 at the previous market close.