The United States Secret Service has successfully recovered nearly $3 million stolen in a business email compromise (BEC) scam that targeted the North Carolina Housing Finance Agency (NCHFA). The NCHFA, responsible for managing funds from the Homeowner Assistance Fund aimed at aiding homeowners during the pandemic, lost the substantial amount in the scam last year. The fraudulent activity unfolded when two NCHFA employees received deceptive emails posing as Innovative Emergency Management, a contracted company. The emails, requesting updates to payment information for Innovative Emergency Management, led to the agency wiring over $2.7 million to a fraudulent account.
Upon realizing the potential fraud, NCHFA was alerted by its bank, Wells Fargo, to verify the legitimacy of the new account. Discovering the discrepancy in the email address used in the deceptive communication, the agency promptly reported the incident to the FBI’s Internet Crime Complaint Center (IC3). Subsequently, the United States Secret Service took up the case, successfully seizing the stolen funds in September. Further investigation revealed a complex network involving an account managed by Currencycloud, an international currency transfer service linked to a Romanian national named Florina-Victoria Constantinescu, who incorporated a company named FVB LTD, seemingly a clothing retailer based in the United Kingdom.
The intricate scheme involved FVB LTD billing the North Carolina agency for a “Consultancy and Management Fee” through an invoice supplied to Currencycloud during the wire transfer. The revelations shed light on the sophisticated nature of BEC scams, showcasing how cybercriminals exploit communication channels to manipulate financial transactions. The recovery by the Secret Service highlights the importance of swift action and collaboration between law enforcement and financial institutions to counter such fraudulent activities.
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