EAGLE MOUNTAIN, Utah (ABC4) – Eagle Mountain City say they were victim to a cybercrime that resulted in a loss of nearly $1.13 million.
City officials say the individual(s) responsible impersonated a representative of a vendor working closely with the City on a major infrastructure project in an email on Wednesday, August 31.
Eagle Mountain City immediately took action by contacting the Federal Bureau of Investigation (FBI), Utah County Sheriff’s Office and the vendor after learning of the incident. An investigation has been opened and Eagle Mountain City said those affected have been cooperating with authorities.
The $1.13 million was stolen through an Automated Clearing House (ACH) transfer – which according to NerdWallet, is an electronic movement of money between banks, whether person-to-person, business-to-business, person-to-business, and vice versa. Since learning of the incident, Eagle Mountain City has spent “significant time” strengthening its financial policies regarding ACH payments.
The changes made are designed to prevent similar incidents from happening again in the future and to implement an added layer of accountability for City staff when completing financial transactions.
The City has previously prepared for the possibility of cybercrime by purchasing an insurance policy that deals directly with cybercrimes and attacks. Eagle Mountain City is currently working with the insurance company to be reimbursed for the loss.
“The City wants to provide reassurances that no resident, client, or vendor information was compromised in any way as a result of this incident,” Eagle Mountain City officials said in a statement. “Those affected will continue cooperating with investigators until the case has reached its conclusion. At this time, no City or vendor employees are under suspicion of wrongdoing.”