The City of Tulsa, Oklahoma, is grappling with a substantial financial setback after losing nearly $200,000 in an email hacking scheme. The incident, which resulted in a loss of $191,972, occurred during the transfer of hotel tax funds intended for promoting local tourism. According to city officials, the city inadvertently deposited the funds into a counterfeit bank account rather than the correct account for the Tulsa Tourism District No. 1 on April 4, 2024. The city’s records indicate that the legitimate payment was misdirected due to fraudulent electronic funds transfer (EFT) instructions.
As the city seeks to rectify the situation, it has contacted the FBI to investigate the incident. City spokesperson Carson Colvin confirmed that the vendor’s email used for the payment was hacked, leading to the erroneous transfer of funds. While the investigation is ongoing, city officials are implementing measures to strengthen the vendor change process to prevent similar incidents in the future. Colvin emphasized the city’s commitment to safeguarding taxpayer funds and ensuring such vulnerabilities are addressed.
In a bid to recover the lost funds, Tulsa plans to tap into its “sinking fund,” which is sourced from property taxes. The city is contractually obligated to repay the funds to the Tulsa Tourism District, even though the initial payment cannot be recovered. This arrangement will require the city to replace the lost funds through collections over the next three years, effectively placing the financial burden on local taxpayers.
During a recent City Council meeting, officials discussed the situation briefly, highlighting the need for confidentiality surrounding the ongoing investigation. Council Administrator Jack Blair stated that the payment misdirection stemmed from the fraudulent email instructions, underscoring the importance of vigilant communication practices in the digital age. As the FBI continues its investigation, the city remains focused on reinforcing its processes to protect against future cyber threats.
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