Update on recent customer fraud incident

Kina Securities Limited (ASX: $KSL) has reported a recent customer fraud incident impacting several accounts, with an expected aggregate loss of PGK12m to PGK15m. The company has promptly addressed system vulnerabilities and is planning further enhancements to systems and processes.

Executive Commentary on Fraud Incident

The recent customer fraud incident has been a concerning development for Kina Securities. We are actively investigating the matter and have taken immediate steps to address the system vulnerabilities. Our priority is to ensure the security and trust of our customers, and we are committed to evaluating all options for the recovery of these losses. We will continue to provide updates as the situation unfolds.

Summary of Customer Fraud Incident and Outlook

Kina Securities has identified and addressed system vulnerabilities following a recent customer fraud incident, with an expected aggregate loss of PGK12m to PGK15m. The company anticipates a potential 13% to 17% decrease in net profit after tax for the half year ending 30 June 2024, compared to analyst consensus estimates. Kina Securities is focused on enhancing its systems and processes to mitigate future risks and is evaluating recovery options for the fraud losses. The company remains committed to maintaining the security and trust of its customers while navigating through this challenging situation.