Baltimore Loses $1.5M in Fraudulent Payments Due to Lack of Protections
Baltimore has fallen victim to a series of fraudulent payments, resulting in significant financial losses. The city's accounts payable department has faced criticism for lacking proper email login protections.
In 2019, a fraudster exploited a vulnerability in the city's systems, leading to a payment of $62,377 being sent to a bogus account after vendor information was altered. The city managed to retrieve this amount. However, in 2022, a more sophisticated scam occurred, with over $376,000 sent to a scammer's account. Despite attempts, this larger sum could not be recovered.
Between February and March 2023, Baltimore made two fraudulent payments totaling over $1.5 million to the same scammer's account. The city's Inspector General, Isabel Mercedes Cumming, found that the accounts payable department had failed to implement adequate email login protections, leading to these substantial losses. This is at least the third such incident since 2019.
The City of Baltimore has suffered significant financial losses due to fraudulent payments, with a total of over $1.5 million lost to scammers. The city's finance director has stated that new policies have been implemented to independently verify bank account changes following the 2022 incident. However, the recent loss of over $1.5 million indicates that more robust measures may be necessary to prevent such occurrences in the future.
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