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Pittsburg Admits $913,000 Wire Sent to Scammers Posing as Vendor

Law enforcement froze recipient accounts, recovered most of the money, pursued insurance for the remainder.

Overview

  • City staff sent $913,000 to a bank account impersonating a vendor on Feb. 12 and flagged the payment as fraudulent on Feb. 17, prompting the Pittsburg Police to notify the FBI and Contra Costa County investigators.
  • Police immediately froze the recipient account and investigators later recovered $696,241 with roughly $217,598 being pursued under the city’s cyber and crime insurance policies.
  • Federal and local authorities have executed 18 search warrants that covered 116 accounts at technology, financial and telecom firms as part of an active multi-jurisdictional investigation.
  • Investigators say the probe has identified a primary overseas suspect based in Nigeria and at least two U.S.-based suspects, and the FBI and U.S. Attorney’s Office continue work domestically and abroad.
  • The city tightened payment-verification rules, revised financial workflows and changed IT staffing after the breach, a response officials say aims to reduce the risk of similar invoice-impersonation schemes that target public agencies.