The Harpswell Anchor reported:
“The town recently became the victim of a fraud scheme in which it received fraudulent payment instructions that were made to appear as if they came from a vendor, diverting $189,199 of municipal funds away from the intended recipient,” Select Board Chair Kevin Johnson said during a board meeting on May 21.
Upon discovering the fraud, the town took several “immediate” steps, Johnson said, reading a statement signed by all three board members. Town officials reported the incident to local and federal authorities, who have opened an investigation. The town also notified its insurance carrier, legal counsel and auditing firm.
Upon discovering the fraud, the town took several “immediate” steps, Johnson said, reading a statement signed by all three board members. Town officials reported the incident to local and federal authorities, who have opened an investigation. The town also notified its insurance carrier, legal counsel and auditing firm.
Find the original article here.
Takeaway: Have a separate process for remittance changes that includes controls, validations, authentication and best practices. It's great that a call was made to confirm the payment, so the victim knew right away there was a problem.
Enroll in Training Sessions: Last Thursday of Every Month is Training on Frauds and New Scam Alerts and How to Combat
Takeaway: Have a separate process for remittance changes that includes controls, validations, authentication and best practices. It's great that a call was made to confirm the payment, so the victim knew right away there was a problem.
Enroll in Training Sessions: Last Thursday of Every Month is Training on Frauds and New Scam Alerts and How to Combat