Chinese internet firm Sohu’s employees duped by email scam that promised ‘allowances’ to those who provide their banking data

Two dozen employees at Sohu last week lost about US$6,000 after they fell victim to an email scam that used a hacked account in the company

While online scams are not uncommon in China, cybersecurity breaches in major hi-tech firms have become rare

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Sohu.com’s reputation has taken a hit on Chinese social media, following the security breach at the Beijing-based company. Photo: Shutterstock

Published: 6:00pm, 25 May 2022Updated: 6:23pm, 25 May 2022

Chinese internet portal operator Sohu.com said on Wednesday that two dozen employees lost more than 40,000 yuan (US$6,000) after they fell victim to an email scam, which promised “allowances” to recipients who provide their bank accounts and other personal identification information.

The 24 employees believed the email was authentic because it was sent from an undisclosed Sohu employee’s account, which was later found to have been hacked and used to send mail purportedly from the firm’s corporate finance department, according to a statement posted by Sohu on microblogging platform Weibo.

The email sent on May 18 had the subject “Notice on the wage allowance for May”, according to a report on Wednesday by The Beijing News, a Chinese Communist Party-owned newspaper. Some of the duped employees lost their savings after providing their banking data, the report said.

That Sohu email account was compromised after an employee’s password was leaked in an accidental phishing incident, according to Beijing-based Sohu. It said the case has been reported to the police for further investigation.

Sohu.com founder Charles Zhang Chaoyang attends an internet conference in Beijing on August 28, 2014. Photo: Shutterstock

Sohu founder, chairman and chief executive Charles Zhang Chaoyang said in a post on Weibo that the incident “isn’t as severe as people assume”. He indicated that measures taken by the company’s technology department kept the total financial loss to below 50,000 yuan.

In addition, he said the incident did not affect the email services of all Sohu users.

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