City of Burlington gets scammed loses up to $503,000

City of Burlington loses half a dozen million dollars by getting scam to transfer to phony bank account

Ontario, the city officials in Burlington has reported about phishing scam in which the municipality loss half a million dollars. It was happened on 16th of May by this year. The investigation is still going-on. According to the report, the exact amount of $503,000 was transacted to attackers by a staff member of the municipality. He/she get phished by the email requesting to change banking information for someone the city was doing business.

City’s mayor, Marianne Meed Ward has stated about the event:

“This was a case of online fraud with falsified documents at a level of sophistication not typically seen and we are taking the necessary steps to prevent it from happening in the future. This stresses just how important it is that we are all vigilant and recognize the signs of online fraud, phishing and other scams, and report them to the proper authorities — so that no one becomes a victim of this type of criminal activity.”

Personal data was not stolen

The incident was reported to the bank and the police soon as being fraud was realized on 23 May. The Burlington’s officials added more internal security so that they can avoid getting scammed by such a campaign in future. According to the officials, the event was not created the case of data breach. They claim that the personal details have not been theft or shared.

Tim Commisso, the Interim City Manager says:

“We are taking this matter very seriously. City staff took immediate action, including notifying members of council and our audit committee when the incident was first discovered. We are working closely with the police on their ongoing criminal investigation and we have also initiated an independent external investigation of the incident, which will be part of our reporting back to council and the audit committee.”

City further deny saying further and asking for the wait till the investigation is completed. The investigation is processing about to get the review of the incident, the email and the processes currently running on the City of Burlington.

Other related scams

In Canada in 2018, total 2260 reports about fraud incidents leading lose up to $17,000,000. Various cities in America got victimized that led them to go back to do payment, documentation and so on by pencil and paper. Scammers are also targeting around institutions, companies and governments with malicious crypto-extortion campaign.