Two Words, Millions for Austrian Companies
- VIENNA, Austria (AP) — Two Austrian companies, FACC and Rondo Ganahl, are celebrating the recovery of millions of euros lost in separate incidents of internet fraud, thanks to...
- Rondo Ganahl, a Vorarlberg-based packaging manufacturer, fell victim to online fraud shortly before Christmas 2015, losing 3.79 million euros.
- Similarly,Innviertel aviation supplier FACC was defrauded of 54.2 million euros.
Legal Loophole Closure: austrian Firms Recover Millions Lost in Cyber Fraud
Table of Contents
- Legal Loophole Closure: austrian Firms Recover Millions Lost in Cyber Fraud
- Legal Loophole Closure: Austrian Firms Recover Millions lost in cyber Fraud – A Q&A
- What happened to the Austrian companies FACC and Rondo Ganahl?
- How much money did they lose?
- Could the companies recover the stolen funds initially?
- Why couldn’t the companies get their money back?
- What was the legal loophole that prevented the recovery of funds?
- When was this legal issue resolved?
- What was the key change that allowed the funds to be returned?
- When did the amended law come into effect?
- Did the legal reform result in the companies getting their money back?
- Who deserves credit for the legal reform?
- What was the impact of the legal reform?
- How did the companies feel about the outcome?
- What were the key dates related to this case?
VIENNA, Austria (AP) — Two Austrian companies, FACC and Rondo Ganahl, are celebrating the recovery of millions of euros lost in separate incidents of internet fraud, thanks to a recent legal reform.The amendment, centered around the addition of two crucial words, “or assets,” to a key legal statute, closed a loophole that had previously prevented the return of digitally stolen funds.
Cyber Heist and Initial Setback
Rondo Ganahl, a Vorarlberg-based packaging manufacturer, fell victim to online fraud shortly before Christmas 2015, losing 3.79 million euros. The company acted swiftly, and authorities were able to freeze the fraudsters’ account in China soon after. however, the funds remained inaccessible to Rondo Ganahl.
Similarly,Innviertel aviation supplier FACC was defrauded of 54.2 million euros. Authorities managed to secure 10.8 million euros, but the legal system initially blocked its return.
Legal Limbo
Despite recovering the funds, the Austrian judiciary initially refused to return the money to the victimized companies. The Chief Prosecutor’s Office (OStA) Vienna argued in September 2019 that existing laws only applied to “physical things,” like banknotes, not to electronic accounts. This interpretation meant that while stolen physical currency could be returned, swindled digital funds were stuck in legal limbo.
The Turning Point: Legal Reform
The legal impasse persisted until late 2024 when the Austrian People’s Party (ÖVP) and the Green Party revised the Code of Criminal Procedure (StPO). This revision included an amendment to allow the return of “objects or assets” to victims of crime. This seemingly small change, the addition of “or assets,” proved to be the key to unlocking the frozen funds.
The amended law, effective since the beginning of 2025, mandates that prosecutors return not only physical objects but also transferred digital funds to victims.
Justice Served
On March 17, 2025, Rondo Ganahl saw the 3.79 million euros returned to its account, more than nine years after the initial fraud. Klaus Schneider-Paier, CFO of Rondo Ganahl AG, credited media attention for creating the pressure needed for legal reform.FACC also received its recovered funds by the end of March.
Robert Machtlinger,CEO of FACC,stated in a broadcast that “The final transfer of the funds to the FACC ends a long-term legal chapter.”
Legal Loophole Closure: Austrian Firms Recover Millions lost in cyber Fraud – A Q&A
HereS a breakdown of the Austrian legal reform that helped companies recover funds lost to cyber fraud, presented in a question-and-answer format.
What happened to the Austrian companies FACC and Rondo Ganahl?
both FACC, an Innviertel aviation supplier, and Rondo Ganahl, a Vorarlberg-based packaging manufacturer, were victims of internet fraud.They lost critically important sums of money to online scams.
How much money did they lose?
Rondo Ganahl lost 3.79 million euros shortly before Christmas 2015. FACC lost a staggering 54.2 million euros.
Could the companies recover the stolen funds initially?
No, despite authorities freezing the fraudsters’ accounts in china, Rondo Ganahl’s funds remained inaccessible. While authorities managed to secure 10.8 million euros for FACC, the legal system initially blocked its return.
Why couldn’t the companies get their money back?
The Austrian judiciary initially refused to return the money because of a legal loophole. Existing laws were interpreted to only apply to “physical things,” like banknotes. electronic accounts and digital funds were not included. This meant that while stolen physical currency could be returned, digitally swindled funds were trapped in legal limbo. This interpretation was held by the Chief Prosecutor’s Office (OStA) Vienna as of September 2019.
What was the legal loophole that prevented the recovery of funds?
Existing laws didn’t explicitly include “digital assets” when covering stolen property. They only referred to physical objects. This meant that despite the money being recovered (or at least,access to the fraudsters’ accounts being frozen),the law didn’t allow for its return to the victimized companies because it considered only physical possessions.
When was this legal issue resolved?
The legal issue was resolved in late 2024 with a revision to the Code of Criminal Procedure (StPO) by the Austrian People’s Party (ÖVP) and the Green Party.
What was the key change that allowed the funds to be returned?
The revision included an amendment to the law, adding the words “or assets” to a crucial clause. This change allowed for the return of “objects or assets” to victims of crime, clarifying that digital funds were covered.
When did the amended law come into effect?
The amended law became effective at the beginning of 2025.
Did the legal reform result in the companies getting their money back?
Yes! Rondo Ganahl received its 3.79 million euros on March 17, 2025, more than nine years after the initial fraud. FACC also received its recovered funds by the end of March 2025.
Who deserves credit for the legal reform?
Klaus Schneider-Paier, CFO of Rondo Ganahl AG, credited media attention for creating the pressure needed for reform. The Austrian People’s Party (ÖVP) and the Green Party also played a key role, revising the Code of Criminal Procedure.
What was the impact of the legal reform?
The legal reform allowed Austrian companies to recover funds lost due to internet fraud. It closed a loophole that previously prevented the return of digitally stolen assets, effectively modernizing the legal framework to address cybercrime.
How did the companies feel about the outcome?
Robert Machtlinger, CEO of FACC, stated that “The final transfer of the funds to the FACC ends a long-term legal chapter.” This statement reflects the relief and closure felt by the companies after a long legal battle.
Here’s a timeline summarizing the key dates:
| Date | Event |
|---|---|
| Shortly before Christmas 2015 | Rondo Ganahl falls victim to online fraud |
| September 2019 | Chief Prosecutor’s Office (osta) Vienna interprets law to only include “physical things.” |
| Late 2024 | Austrian People’s Party (ÖVP) and Green Party revise the Code of Criminal Procedure |
| Beginning of 2025 | Amended law comes into effect. |
| March 17, 2025 | Rondo Ganahl receives returned funds. |
| End of march 2025 | FACC receives returned funds. |