Scammer Tricks City Into $1 Million Wire Transfer

Scammer Tricks

The City of Saskatoon was effectively fooled by a scammer to transfer over $1 million to them. However, they may not appreciate the riches.

The town has been victimized by the classical e-mail compromise (BEC), also known as e-mail account compromise (EAC), a phenomenon which caused losses in the US alone for more than $1.2 billion last year.

Money traced and blocked

According to local news, Saskatoon wired 1,04 million dollars to someone who personified Allan Construction, the Chief Financial Officer, as a firm engaged in a bridge rehabilitation.

In this kind of fraud the thief seeks to guide staff in charge of making payments to a fraudster-controlled account.

This is obtained through payment papers that look valid but have been altered to include the bank account of the attacker. The objectives are financial department workers who get an e-mail to make a payment.

Payment took place around 7 or 8 August. Immediately after it was discovered on 12 August, law enforcement and financial institutions were notified in an effort to reverse the transaction and retrieve the cash.

According to City Manager Jeff Jorgenson, most money was attributed to a number of bank accounts frozen in court between 10 and 15.

Many of the fraudsters ‘ accounts are in Canada and were not emptied, which explains how to freeze them in the town. The cyber criminals would have received a heavy payout if the funds had been moved to banks abroad.

The cash retrieval method is early, and the town has got only $40,000 to date. It is unlikely that the entire sum will return to town, but Jorgenson is confident that most of it will return.

In order to avoid future fraudulent occurrences, the administration began to tighten safety checks on economic transactions.

BEC is a dedicated gang company

Who is the author of the heist is uncertain. BEC scams typically are the work of gangs specialized not only in this kind of fraud, but also in running tricks of truth.

A latest FBI study warns that romance scam victims are often recruited to offenders as unwitting cash mules.

Agari’s email security firm followed the activities of one BEC group 11 years ago and saw it develop from a one-man show to a gang with at least 35 members. There are several such groups in the globe.

Victims could lose this criminal enterprise enormous quantities. Last week the FBI arrested an offender in a group responsible for the stealing of almost 11 million dollars from the Caterpillar Industrial and Farming Export Office. Such transactions cannot be overturned.

Jennifer Thomas
Jennifer Thomas is the Co-founder and Chief Business Development Officer at Cybers Guards. Prior to that, She was responsible for leading its Cyber Security Practice and Cyber Security Operations Center, which provided managed security services.