Snakk Media falls victim to online scam

Snakk Media chief executive Mark Ryan.
Snakk Media chief executive Mark Ryan.

Snakk Media, the NXT-listed mobile advertising company, says it has become the victim of an online scam that could cost as much as $215,000.

In a statement to the NZX, Snakk said the loss won't affect its ongoing operations or its investment plans for 2017. It says the company has more than $3 million in available cash reserves. Its auditor, Staples Rodway, is to investigate what happened and the company's ability to recover the funds.

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Snakk says its bank is pursuing the bank which received the funds and the activity has been logged with its fraud unit.

Details on whether management feel the money can be recovered will be given after it's received the auditor's report and the banks have investigated the matter.

Meanwhile the company says its controls have been improved and Staples Rodway have also been asked to review the company's procedures and monitoring activities.

The shares were unchanged at 70 cents, and have fallen 40 percent on a year ago. It listed on the NZAX in 2013, before switching to the NXT market last year.

- BusinessDesk

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