Web Scam Bilks State of Utah Out of $2.5M

KitB sends in a story in the Salt Lake Tribune that tells of a Web-based scam, resembling some used by Nigerian gangs, that snared the state of Utah. $2.5M was sent to a bank account in Texas before the bank raised a question and then froze $1.8M in the account. "Thieves apparently used a Nigerian-based scam to steal $2.5 million from the Utah treasury, covering their tracks by using intermediaries and a church address. A Salt Lake Tribune review of the names listed in a search warrant as receiving or transferring money [found] names of African origin or connections to that continent. Michael Kessler, ... a forensic accounting [investigator] in New York City, said the thieves appear to have used a simple scam that originated in Nigeria about five years ago. The Utah theft is the first time he's seen a government victimized. 'Their IT people should have known better,' Kessler said after reviewing a copy of the search warrant Thursday. 'It sounds like any kid could have done this.'"

Comments

Re:Everyone

[RodgerDodger]

*sigh* can't you read TFA? There wasn't a scam like the Nigerian scams - this is more a case of someone forging invoices.

Essentially, the scammers changed the bank details for the University of Utah, and submitted invoices. The state paid them. Yes, the state was slack and had poor procedures for identifying and preventing fraud, but it wasn't one of the 419 scams. Importantly, there doesn't appear to have been an element of greed on the scamee's part.

This was a scam technique that originated in Nigeria. It wasn't the Nigerian 419 Scam. Strangely enough, Nigeria has been the origin of more than one type of scam.