iLearningEngines Reports $250,000 Loss in Cyberattack, Anticipates Significant Operational Impact

iLearningEngines, a U.S.-based company that offers AI training software for businesses, recently reported a cyberattack. This incident allowed hackers to break into their network and steal $250,000.

On Monday, iLearningEngines filed an 8-K form with the U.S. Securities and Exchange Commission. In this filing, they described the situation as a “cybersecurity incident.” An unknown hacker accessed their network and misdirected a wire payment of $250,000. Unfortunately, the company hasn’t been able to recover this amount.

While the exact timing of the attack isn’t clear, the nature of the incident suggests it might be a business email compromise (BEC) attack. This type of scam involves hackers manipulating email accounts to steal funds from companies. Typically, BEC attacks target businesses that handle wire transfers or work with international suppliers.

According to the filing, the hacker also deleted several email messages and accessed certain files on iLearningEngines’ network. The company hasn’t confirmed which files were accessed, and they haven’t responded to inquiries about the attack yet.

iLearningEngines mentioned that they have incurred and may continue to incur expenses due to this cybersecurity incident. They expect it to significantly impact their operations during the fiscal quarter ending December 31, 2024. Recently, the company reported a loss of $314 million on revenues of $135 million in their fiscal second quarter.

Describing themselves as an “AI-powered learning automation” firm, iLearningEngines went public in April 2024. They claim to serve over 1,000 enterprise customers.