2023-02-24 NATURES SUNSHINE PRODUCTS INC Cybersecurity Incident

Page last updated on April 11, 2024

NATURES SUNSHINE PRODUCTS INC initially disclosed a cybersecurity incident in an SEC 8-K filing on 2023-02-24 09:16:41 EST.

Incident Details

Material: Unknown
Is Breach: Unknown
Records Compromised: Unknown
Data Types Impacted: No Data Types Tracked (yet)

Compromised Date: 2023-02-01
Detected Date: 2023-02-17
Disclosure Date: 2023-02-24
Contained Date:
Recovered Date:

Attack Goal: Unknown

Costs: No Costs Tracked (yet)

Filings

8-K filed on 2023-02-24

NATURES SUNSHINE PRODUCTS INC filed an 8-K at 2023-02-24 09:16:41 EST
Accession Number: 0000275053-23-000003

Item 8.01 Other Events.

On February 17, 2023, Nature’s Sunshine Products, Inc. (the “Company”) became aware that Synergy Worldwide Japan G.K., a Japan entity and wholly owned subsidiary of the Company (“Synergy Japan”), was the victim of a criminal scheme involving employee impersonation and fraudulent requests targeting Synergy Japan. The criminal scheme resulted in a series of fraudulently induced wire transfers between February 1, 2023, and February 17, 2023 totaling $4.8 million. The Company promptly launched an investigation, led by an independent third party, to determine the full extent of the fraud scheme and related potential exposure. The Company expects to record a one-time pre-tax charge of up to $4.8 million in the first quarter of 2023 as a result of this event. The Company self-discovered this fraudulent activity and promptly initiated contact with its bank as well as appropriate law enforcement authorities in an effort to, among other things, recover the transferred funds. To date, the Company has not found any evidence of additional fraudulent activity and does not believe the incident resulted in any unauthorized access to confidential consumer information or other data maintained by the Company. While this matter will result in additional near-term expenses, the Company does not expect this incident to otherwise have a material impact on its business.

This Current Report on Form 8-K contains forward-looking statements regarding the Company’s future business expectations, which are subject to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements may include, but are not limited to, statements relating to potential losses resulting from the fraudulently induced wire transfers and related impacts of such events. All statements (other than statements of historical fact) that address activities, events or developments that we intend, expect, project, believe or anticipate will or may occur in the future are forward-looking statements. These statements are often characterized by terminology such as “believe,” “hope,” “may,” “anticipate,” “should,” “intend,” “plan,” “will,” “expect,” “estimate,” “project,” “positioned,” “strategy” and similar expressions, and are based on assumptions and assessments made in light of our experience and perception of historical trends, current conditions, expected future developments and other factors we believe to be appropriate. Forward-looking statements are not guarantees of future performance and are subject to risks and uncertainties, including those detailed under the caption “Risk Factors” in our reports filed with the Securities and Exchange Commission, including our Annual Report on Form 10-K and Quarterly Reports filed on Form 10-Q. All forward-looking statements speak only as of the date of this press release and are expressly qualified in their entirety by the cautionary statements included in or incorporated by reference into this press release. Except as is required by law, the Company expressly disclaims any obligation to publicly release any revisions to forward-looking statements to reflect events after the date of this press release.

Company Information