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Published on July 5th, 2019 📆 | 4835 Views ⚑

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Welsh entrepreneurs go bust after losing £18,000 on Chinese hacking scam


https://www.ispeech.org

A toy company based in Anglesey is on the brink of going bust after losing £18,000 in a hacking scam.

In 2016 Si-lwli Cymru created the "world's first Welsh singing toy" after couple Awena and Baron Walkden had their daughter Cari Mon and were frustrated by the lack of Welsh language toys available.

Frustrated with the lack of options the couple decided to create their own toy, a brightly-coloured singing star called Y Seren Swynol which sings Welsh nursery rhymes – and they believed it was the first of its kind.

But despite initial success the business has now effectively been wiped out by a "sophisticated" fraud.

They say a hacker intercepted and altered emails they sent for an order.

According to North Wales Live , Awena had planned to have the newest edition of their red dragon toy Draigi to be manufactured at a site in China - capable of creating toys that could sing.

The Y Seren Swynol by Si-lwli Cymru

She only realised it was all a scam when she transferred the money online.

The mother of two told North Wales Live: "Someone had hacked the factory's network and had been looking at our emails.

"They had been stopping a few emails and then changing the information in them."

The theory is the hacker altered the manufacturer's bank details with another account before sending it over to Awena.

Awena later had an email stating she was required to pay £18,000 for the toys, but she noticed pretty quickly that the bank details had been altered.

But she was told by the hacker that the details were correct and the money was later sent.

A month on, Ms Awena was said to be "puzzled" to discover the manufacturer had not received Si-lwli's payment.

In order for the toys to be dispatched, she was told she'd have to send over another £18,000.

It was a huge blow to the couple who had such interest in the business when it first launched.

Siân Gwenllian AM and Leanne Wood at Eisteddfod Genedlaethol Cymru 2017 with the Y Seren Swynol

Interest grew in their creation from friends and family, with several people asking to have their own version, so the couple decided to approach a manufacturer for their first batch.

In just one month of opening they were completely sold out with orders being sent across the world including Australia, New Zealand, and Vietnam.





When they announced people could make pre-orders the toy proved so popular that their website crashed for days due to so many visitors.

Describing the hacking fraud, she said: "I felt numb at first, and then I was upset for weeks.

"We were in the process of refurbishing the house at the time, but we had to remortgage it to pay for the extra money.

"There was no way of getting the money back- it was awful."

Now expecting her third child, Awena had been working to develop the business outside of her day-to-day job as a solicitor.

This is mainly because she is so passionate about speaking Welsh.

She said: "It is a heartbreaking situation and still feels really raw.

"But people have been very supportive on social media, and have even started a  crowd funding page  for us.

"A lot of people feel that it's not just an attack on us, but an attack on the Welsh language and Welsh speaking children."

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The couple have reported the incident to the police but were told they were unable to assist them due to the fact that it all took place in China.

"We found out that hacking scams in China are common," she added.

"I wish we had known this sooner, and I hope that it won't happen to anyone else."

The couple are now taking a break from the business to focus on their family and, despite the awful blow, they are still hopeful that Si-lwli Cymru's will have a future.



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