- EML Payments’ (EML) reports it has identified “fraudulent activity” within the direct debit processing arm of its Sentenial business
- The company is busy investigating the issue and says the activity occurred mostly during this month, though EML estimates its losses from the fraud will not exceed $7.9 million
- The fraud was flagged within the company yesterday — the same day shares in EML Payments fell 11.5 per cent with no explanation
- EML has now taken steps to attempt to recover any losses
- Shares in EML payments are trading 16.6 per cent lower at 83 cents at 12:11 pm AEST
EML Payments (EML) shares have tumbled for the second day in a row after the company reported it had identified “fraudulent activity” within the direct debit processing arm of its Sentenial business.
EML said it was still investigating the issue and taking steps to understand the circumstances around the fraud, which occurred mostly during this month. The company estimated its losses from the fraud would not exceed $7.9 million.
Sentenial offers open banking and account-to-account payments to major banking customers across the UK and Europe.
EML said the fraud issue was flagged within the company yesterday — the same day shares in the business fell 11.5 per cent with no explanation — and was related to an identified set of fraudulent merchants.
The company has now taken steps to attempt to recover any losses.
EML acquired Sentenial last year for $108.6 million plus an earn-out component of up to $62.1 million.
Shares in EML Payments were trading 16.6 per cent lower at 83 cents at 12:11 pm AEST.