The EML Payments Ltd (ASX: EML) share price is tumbling after exiting a brief trading halt on news of fraud this morning.
The company has identified fraudulent activity within its Sentenial business. The resulting losses could amount to $7.9 million.
The EML share price is currently trading at 84.5 cents, 15.08% lower than its previous close.
Let's take a closer look at what's going on with the S&P/ASX 200 Index (ASX: XJO) payments solution provider.
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EML share price plunges on fraud finding
The EML Payments share price is plunging lower on Wednesday after the company announced it identified a set of fraudulent merchants within Sentenial's debt processing business.
The company believes the fraudulent activity could leave a dint of up to 5.5 million euros ($7.9 million). Though, the ultimate impact will depend on the success of recovery actions initiated by the company.
EML is working to investigate and understand the circumstances surrounding the fraud, which mainly occurred this month and was brought to the company's attention on Tuesday.
It has committed to inform the market of any further material findings.
The ASX 200 tech company completed its acquisition of Sentenial in September. The business provides open banking and account-to-account payments to European customers.
Today's tumble sees the EML share price trading at its lowest point since 2016.
That's despite the 6% surge experienced by the stock following the release of its full-year earnings and news of an on-market buyback earlier this week.
The tech share has dumped 74% since the start of 2022. It's also trading 78% lower than it was this time last year.
For context, the S&P/ASX 200 Information Technology Index (ASX: XIJ) has slumped 28% year to date. It has also fallen 34% over the last 12 months.
