The US government has initiated a civil forfeiture action to recover over $5.3 million lost by a Massachusetts workers union in a BEC scam. In January 2023, cybercriminals deceived the union by sending an email, purportedly from a trusted investment consulting firm, directing them to transfer $6.4 million to a different bank account. Despite the union’s compliance with the fraudulent request, authorities were able to trace $5.3 million to bank accounts at JPMorgan Chase and Texas Bank and Trust.
Efforts to conceal the source of the stolen funds included rapid transfers between accounts and dispersal to multiple destinations. The complaint filed by the US Justice Department outlines the sophisticated nature of the scam, involving money mules and intermediary bank accounts. Acting US Attorney Joshua S. Levy emphasized the significant financial and emotional harm caused by BEC fraud, underscoring the importance of reporting such crimes to authorities.
Cybercrime losses soared to a record $12.5 billion in 2023, with BEC schemes accounting for $2.9 billion of the total. The civil forfeiture action demonstrates a proactive response to combatting cyber fraud, showcasing the government’s commitment to recovering stolen funds and holding perpetrators accountable. This case serves as a cautionary tale for businesses and individuals, highlighting the ongoing threat posed by cybercriminals exploiting trusted communication channels for illicit gain.
