Business Email Compromise Scam Costs Regional Manufacturer Over $190,000
FamilyindustrylawBusiness Email Compromise Scam Costs Regional Manufacturer Over $190,000
A Washington County manufacturer was the victim of a common email scam that cost the company more than $190,000, according to a criminal complaint. In April 2022, an unidentified suspect used a Business Email Compromise (BEC) scam against a Washington County-based manufacturer of precision machined plastic parts.Manufacturer not named in federal complaint
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A Washington County manufacturer was the victim of a common email scam that cost the company more than $190,000, according to a criminal complaint. In April 2022, an unidentified suspect used a Business Email Compromise (BEC) scam against a Washington County-based manufacturer of precision machined plastic parts. The manufacturer was not named in the federal complaint but is mentioned by its initials – AMI. A customer of AMI (abbreviated MI) was also involved in the case. Neither company was named because they were victims of the scam. From February 2022 to April 2022, an employee of MI received multiple emails from an employee of AMI, according to the criminal complaint. MI employees believed the emails came directly from AMI, but the fraudsters gained unauthorized access to the emails. The fraudsters changed the email addresses of AMI employees and intercepted MI’s emails. Pretending to be an AMI employee, the fraudster sent an invoice to be paid along with wire transfer instructions. These emails request that invoice payments be rerouted to several different financial institutions. On April 1, MI employees completed a transfer for $85,109. The employee thought they were sending funds to the AMI. On April 4, another transfer of $40,000 was made. Two more wire transfers were made in April, amounting to $40,455 and $26,999. The last two transfers were sent to accounts held by Massachusetts-based Flagship Motorcars, court documents show. The company’s chief financial officer reported on April 12 that a customer named Toyin Ajayi purchased a 2018 Lexus LX570 for $67,463 (the sum of the last two transfers), but the car is still in their In the parking space. On or about April 13, AMI did not receive payment from MI and contacted the company regarding the overdue payment. MI notifies AMI that the payment has been completed. After AMI leadership checked the company’s emails, they realized their payments were now being sent to four different banks. Due to payment exceptions, we contacted AMI’s IT representative. They discovered that one of the employees’ emails had been compromised. In June, Flagship Motorcars seized approximately $40,000 in Bank of America accounts. The money was confiscated in Milwaukee and held by the U.S. Secret Service in Washington, D.C. AMI is seeking court-approved “further relief,” including attorneys’ fees, according to the criminal complaint.
