HAL Pays ₹55 Lakh to Fake Firm for Fighter Jet Parts — Major Scam Unfolds

Hindustan Aeronautics Limited (HAL), a leading Indian state-owned aerospace and defense company, has reportedly fallen victim to a cyber fraud, resulting in a financial loss of approximately ₹55 lakh (around $63,000). The scam involved a fraudulent email that misled the company into transferring funds to a fake entity.

According to reports, the incident took place at HAL’s Kanpur division. Ashok Kumar Singh, the Additional General Manager at HAL Kanpur, lodged a formal complaint with the police on March 13. The complaint detailed how the company was deceived by an email that appeared to be legitimate but turned out to be part of an elaborate online scam.

After realizing that the payment had been made to a fraudulent account, the company promptly reported the matter to the authorities. The police have since registered a case under the Information Technology (IT) Act and have launched an investigation into the incident. Efforts are now underway to trace the source of the fraudulent communication and recover the lost funds.

This case highlights the growing threat of cyberattacks targeting major corporations, where sophisticated scams are used to exploit vulnerabilities in financial and communication systems. HAL, known for its critical role in India’s defense sector, is now working closely with the authorities to prevent similar incidents in the future and strengthen its cybersecurity protocols.

In May 2024, Hindustan Aeronautics Limited (HAL), a state-owned aerospace and defense company, initiated a procurement process for three fighter aircraft parts from PS Engineering Incorporated, a US-based company. HAL reached out to the company, seeking a price quotation for the required parts. The initial communications were conducted through legitimate email exchanges. However, at some point during the negotiation process, a fraudulent email managed to infiltrate the conversation, leading to a significant financial loss for HAL.

Deputy Commissioner of Police (DCP) Crime, Anjali Vishwakarma, explained that the scam was highly sophisticated, involving a subtle manipulation of email addresses. “HAL contacted a US company, PS Engineering Incorporated, to purchase aircraft parts. Initially, the communication was through a legitimate email ID. However, during the course of the exchange, the correct email ID was replaced with a fake one. The only noticeable difference between the two addresses was the absence of the letter ‘e’,” said DCP Vishwakarma.

This minor but crucial difference went unnoticed, leading HAL to unknowingly transfer approximately $63,000 (around ₹55 lakh) to a fraudulent bank account instead of the actual vendor’s account. The deception came to light when the original vendor informed HAL that no payment had been received. It was only after this discrepancy was reported that HAL realized it had been the victim of a cyber scam.

Following the discovery of the fraud, HAL lodged a formal complaint with the police. A case has been registered under the Information Technology (IT) Act, and an investigation is currently underway. The police are working to determine whether the fraudulent activity was carried out by another US-based company or if an Indian entity was involved in the scheme.

This incident underscores the increasing threat of cyber fraud, where even minor changes in communication details can result in substantial financial losses. HAL is now collaborating with investigators to trace the origins of the fraudulent email and recover the lost funds while also examining its internal security measures to prevent similar incidents in the future.