News 10 ABC reported:
Recently, The Cleveland Public Library discovered it sent nearly $400,000 to a fake vendor last summer, in what’s called a payment redirection scam.
In its yearly Cleveland Public Library audit, the Office of Ohio State Auditor Keith Faber found the June 2024 payment happened because the library didn’t have proper controls to detect such scams.
Its insurance company paid out $350,000 and the actual vendor forgave about $46,000. Officials also recovered about $133,000 from the fraudster’s bank account, which was repaid to the insurer. The auditor’s office said the library immediately implemented multiple vendor verification measures to make sure this doesn’t happen again.
Find the original article here.
Takeaway: The vendor did have to forgive $46,000 that the victim was not able to recover. Would your vendor's do the same?
Enroll in Training Sessions: Last Thursday of Every Month is Training on Frauds and New Scam Alerts and How to Combat
Recently, The Cleveland Public Library discovered it sent nearly $400,000 to a fake vendor last summer, in what’s called a payment redirection scam.
In its yearly Cleveland Public Library audit, the Office of Ohio State Auditor Keith Faber found the June 2024 payment happened because the library didn’t have proper controls to detect such scams.
Its insurance company paid out $350,000 and the actual vendor forgave about $46,000. Officials also recovered about $133,000 from the fraudster’s bank account, which was repaid to the insurer. The auditor’s office said the library immediately implemented multiple vendor verification measures to make sure this doesn’t happen again.
Find the original article here.
Takeaway: The vendor did have to forgive $46,000 that the victim was not able to recover. Would your vendor's do the same?
Enroll in Training Sessions: Last Thursday of Every Month is Training on Frauds and New Scam Alerts and How to Combat