Email Scam Costs MariMed Cannabis Operator Hundreds Of Thousands Of Dollars
Portfolio Pulse from Jelena Martinovic
MariMed Inc., a cannabis operator, lost $646,000 due to an email scam involving a forged email and unauthorized money transfer to a Chase Bank account. The scam occurred over several months and was reported in MariMed's recent quarterly report. The company is working with the FBI and local police, and an investigation by Chase Bank is ongoing. MariMed has also submitted a claim for corporate cybersecurity insurance and may reverse the expense if the funds are recovered.
November 22, 2023 | 6:59 pm
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NEGATIVE IMPACT
MariMed Inc. reported a significant financial loss of $646,000 due to an email scam. The company is actively investigating the incident with law enforcement and has filed an insurance claim.
The direct financial loss and the ongoing investigation into the email scam are likely to negatively impact investor confidence in MariMed's internal controls and cybersecurity measures, potentially leading to a short-term decline in the stock price.
CONFIDENCE 80
IMPORTANCE 90
RELEVANCE 100
NEUTRAL IMPACT
Chase Bank, owned by JPMorgan Chase & Co., is involved in the investigation of the unauthorized transfer of funds from MariMed Inc. due to a forged email.
While Chase Bank is involved in the investigation, the impact on JPMorgan Chase & Co.'s stock is likely to be neutral in the short term as the event pertains to a client incident and not directly to the bank's operations or financial stability.
CONFIDENCE 70
IMPORTANCE 40
RELEVANCE 50