GISB investigated for child abuse | Kawasaki Motors Europe faces 487GB of data leak | L.Y.P Group and O?Smach Resort sanctioned for forced labor

In today’s Portfolio Intelligence Daily:?

• GISB investigated for child abuse
• Kawasaki Motors Europe suffers data leak
• L.Y.P Group and O?Smach Resort sanctioned for forced labor

Our analyst team curates these summaries from Auquan’s Intelligence Engine, which uses generative AI and retrieval augmented generation (RAG) to uncover material non-financial insights at scale to support deal sourcing, due diligence, risk monitoring, and compliance.

Industry trends:

• The magic of RAG is in the retrieval (InfoWorld) — Retrieval-augmented generation (RAG) and AI agents are transforming how AI can automate knowledge work in the enterprise.
• Tackling Information Overload in the Age of AI [private credit] (TDWI Upside)
• Why AI is finally catching up with financial services (Maddyness)

GISB investigated for child abuse

Global Ikhwan Services and Business (GISB), a Malaysian conglomerate, is under the investigation for suspected child abuse in charity homes and the Malaysian government frozen nearly 100 bank accounts linked to it.

• Over 400 children and youth were rescued from these homes, many showing signs of sexual abuse and neglect. The investigation has also expanded to alleged money laundering and religious offenses.
• The frozen accounts held more than 580,000 ringgit ($136,000), and police have seized eight vehicles owned by GISB as part of their probe.
• GISB initially denied managing the charity homes or engaging in abuse, but its CEO later admitted to legal violations, including "one or two" cases of sodomy at the homes.
• The case has caused public outrage in Malaysia, highlighting the company’s ties to a religious sect banned by the government 30 years ago. Authorities are summoning GISB's top management for questioning.

Select timeline

• Sep 17, 2024 | Bukit Aman freezes 96 GISBH accounts worth RM581,000 (Sinar Harian)
• Sep 17, 2024 | Malaysia Freezes Bank Accounts Linked to GISB After Child Abuse Allegations (US News)
• Sep 17, 2024 | IGP: Elements of physical, emotional crimes found in kids rescued from care centres (The Star)

Kawasaki Motors Europe suffers critical data leak

The RansomHub ransomware group has leaked 487 gigabytes of data from Kawasaki Motors Europe, including critical financial records, dealership information, and internal communications.

• Kawasaki publicly acknowledged the breach and responded by isolating its servers and initiating a data cleansing process, but chose not to engage with the ransom demands.
• Despite Kawasaki's recovery efforts, RansomHub proceeded to release the stolen data on September 5, 2024, via dark web platforms.
• Kawasaki's decision to prioritize system restoration and data recovery over paying the ransom reflects a broader strategy that could influence how other companies handle similar attacks.
• This incident underscores the growing threat of ransomware attacks and highlights the importance of having robust cybersecurity measures and effective incident response plans in place.

Select timeline

• Sep 16, 2024 | RansomHub Ransomware Gang Leaks 487GB of Alleged Kawasaki Europe Data (Hackread)
• Sep 16, 2024 | RansomHub releases 487GB of Kawasaki Motors Europe data (SC Media)
• Sep 13, 2024 | RansomHub claims Kawasaki cyberattack, threatens to leak stolen data (Bleeping Computer)

L.Y.P Group and O?Smach Resort sanctioned for forced labor

Cambodian tycoon and senator Ly Yong Phat, along with his conglomerate L.Y.P. Group and O?Smach Resort, has been sanctioned by the US Treasury's OFAC for using forced labor to run cryptocurrency scams.

• Workers from countries like China, India, Thailand, and Vietnam were lured to the O-Smach Resort under false pretenses, had their passports confiscated, and were forced into labor for up to 15 hours a day, facing abuse, beatings, and threats of being sold to other scam operations.
• Reports of severe human rights abuses at O-Smach include electric shocks, beatings, and victims committing suicide by jumping from buildings. Some were made to pay ransom to avoid being sold.
• The sanctions freeze Ly's properties and business interests, requiring all related transactions to be reported to OFAC. US citizens and businesses are barred from dealings with L.Y.P. to avoid potential penalties.
• Cybersecurity experts note that while sanctions send a strong message, the effectiveness depends on global cooperation and enforcement, especially due to the transnational nature and corruption involved in these forced-labor cyber scam rings.

Select timeline

• Sep 17, 2024 | Cambodian Tycoon Sanctioned for Forced Cyber Labor, Trafficking (Dark Reading)
• Sep 13, 2024 | Cambodia decries US sanctions against one of its top tycoons implicated in forced labor (ABC News)
• Sep 13, 2024 | US punishes Ly Yong Phat for human trafficking and online fraud (RFI)

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