The Town of Plymouth, Connecticut, is grappling with the aftermath of a significant social engineering scam that led to the loss of over $200,000. According to a Facebook post from Mayor Joseph Kilduff, two payments of $104,150 each were sent to scammers who posed as legitimate vendors, and these funds have not been recovered. The incident has prompted immediate action, including the resignation of the town’s finance director, which Kilduff stated was mutually agreed upon to protect the town’s interests.
The scam reportedly began when one of the town’s vendors fell victim to hacking, which went unnoticed for over a month. Fraudulent actors gained access to sensitive project information and began sending invoices to the Finance Department that appeared legitimate. However, these invoices contained incorrect payment instructions that the department failed to verify properly. Kilduff emphasized the unfortunate circumstances surrounding the incident, highlighting the need for more stringent verification processes.
Following the scam, the Town of Plymouth reported the incident to local law enforcement, the Federal Bureau of Investigation, and its insurance company. An investigation is currently underway to assess the full impact of the breach. Mayor Kilduff reassured residents that there is no suspicion of criminal activity among town employees, and any financial losses incurred will be covered by insurance. He also mentioned that the town’s financial standing remains stable, allowing it to continue providing services without disruption.
As the investigation progresses, the town is moving swiftly to find a new finance director, with support from Twin Lakes Consulting, which currently advises on technology and human resources. Additionally, the Plymouth Police Department has confirmed that the incident involved compromised emails from a town vendor, allowing cybercriminals to fraudulently obtain funds. The ongoing investigation aims to shed light on the methods used by the scammers and to enhance the security measures in place to prevent future incidents.
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