Gooding ID Recovers Nearly $1 Million from Email Scam

Gooding City Recovers Nearly $1 Million from Social Engineering Scam

Gooding City officials have announced the successful recovery and return of $989,524.12 out of the $1,092,519.00 lost earlier this year due to a social engineering scam. The funds were recovered from a business email compromise scheme and returned to the City’s account on Thursday, August 1, 2024.

City of Gooding Duped Into Sending Over $1 Million to Fake Contractors

In June of 2024, The City of Gooding informed the public that they had been scammed into sending funds to a scammer posing as a contractor for a recent wastewater project. The City sent the scammers nearly $.1.1 Million Dollars.

FBI and Bank Efforts Recover Close to $1 Million Dollars

The Federal Bureau of Investigation (FBI) has informed the City that it expects to recover the majority of the remaining $102,994.88, though it will take additional time. City officials anticipate that the final total loss may amount to a few thousand dollars. The City expressed its gratitude for the diligent efforts of the FBI and bank personnel in recovering the lost funds. "These funds would not have been recovered except due to the quick response of City staff, the FBI, and bank personnel," a City representative stated.

Rising Threat of Business Email Compromise

The FBI Internet Crime Complaint Center reported a staggering 21,489 complaints about business email compromise schemes in 2023, resulting in over $2.9 billion in losses, a 7% increase from 2022. These schemes involve fraudsters using email to deceive companies into transferring funds to illegitimate accounts.

Preventative Measures and Future Steps

In response to the incident, Gooding City has implemented additional policies to prevent future scams. The City plans to continue adapting its defenses against emerging threats by educating and training staff and vendors, investing in necessary tools, and establishing protocols to safeguard City operations.

Steps to Avoid Business Email Compromise Scams

Scams are on the rise annually and your business or agency could easily be the next victim. You can take some simple steps to avoid falling victim to business email compromise scams:

1. Educate Employees: Regularly train staff to recognize phishing emails and other social engineering tactics.
2. Verify Requests: Always verify fund transfer requests, especially if they are unexpected or come from new accounts. Use a secondary method, such as a phone call, to confirm.
3. Implement Multi-Factor Authentication (MFA): Require MFA for email accounts and financial transactions to add an extra layer of security.
4. Monitor Accounts: Regularly monitor bank accounts for any suspicious activity.
5. Update Software: Ensure all systems and software are up-to-date with the latest security patches.

For more detailed guidance on protecting against business email compromise scams, visit the FBI's Internet Crime Complaint Center.