A city employee fell foul of a phone scam impersonating a bank representative, resulting in approximately $1.1 million being stolen from municipal bank accounts through unauthorized transfers.
The incident occurred when the employee disclosed sensitive account information during the call. Reports NBC Chicago.
City officials say they became aware of the fraudulent payments shortly after the transactions occurred and took immediate steps to mitigate the effects by notifying law enforcement and hiring outside cybersecurity experts.
“Law enforcement agencies are working closely with financial institutions to recover a portion of the funds, while city leadership continues to coordinate with relevant partners to identify those responsible and pursue full recovery options…
Due to the increasing frequency of these types of attacks nationwide, the City has insurance coverage designed to help mitigate financial losses resulting from incidents of this type.
Officials say there is no evidence that the city’s network or data systems were compromised, however, the results of a forensic audit of the financial institution to determine if there was an impact on any employee data stored on its systems have not yet emerged.
“The City will continue to exercise its internal procedures, security measures and employee training programs to enhance protection and help prevent future incidents.”
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