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Florida City Duped Out of $1.2 Million in Phishing Scam, Police Say

The deception occurred when Fort Lauderdale received what appeared to be a legitimate bill from Moss Construction.
PUBLISHED NOV 21, 2023
'Phishing' email is displayed on a laptop screen on March in London, England  | Getty Images | Photo by Peter Dazeley
'Phishing' email is displayed on a laptop screen on March in London, England | Getty Images | Photo by Peter Dazeley

In an alarming turn of events, the city of Fort Lauderdale in Florida was conned out of $1.2 million by impostors posing as Moss Construction, the legitimate company responsible for constructing a new police station in the city. The fraud came to light when the city paid the sum on September 14, believing they were settling a genuine bill from the construction company. Within a day, it became clear that the payment had been made to scammers.

Tampa Police Department in Tampa, Florida | Getty Images | Photo by Octavio Jones
Tampa Police Department in Tampa, Florida | Getty Images | Photo by Octavio Jones

Fort Lauderdale's Police Department Spokesperson, Ali Adamson, has issued a statement, urging the community to exercise caution when handling payment requests and to remain vigilant against potential scams. While an investigation is ongoing to determine what transpired and where the money was sent, it serves as a stark reminder of the dangers of phishing scams.

Chinese telecom fraud suspects, deported from Guangzhou, are escorted by police | Getty Images | Photo by Tao Zhang
Chinese telecom fraud suspects, deported from Guangzhou, are escorted by police | Getty Images | Photo by Tao Zhang

The deception occurred when Fort Lauderdale received what appeared to be a legitimate bill from Moss Construction. Unfortunately, the city processed the payment without realizing it was a hoax. Fort Lauderdale Mayor Dean Trantalis noted that this was not your typical email scam but a sophisticated operation that involved extensive documentation and paperwork. Given the ongoing $144 million construction project with Moss Construction, the fraudulent request seemed in line with established practices.

Previous Scams and 'Proactive Measures'

The city of Fort Lauderdale had experienced previous phishing attempts, though none were successful until this incident. In response to these threats, Fort Lauderdale had taken "proactive measures to mitigate such risks," according to City Manager Greg Chavarria. However, he did not specify the nature of these security measures or practices.

Chavarria refrained from offering further details at this time, emphasizing that the incident is actively under investigation. He also emphasized the need for everyone to take precautions to protect themselves from fraud.



 

In response to the scam, Moss Construction stated that malicious actors had exploited their reputation to commit fraud. The scammers used publicly available information found through online searches to lend authenticity to their phishing attempt. Law enforcement authorities are currently investigating the case.

To avoid falling victim to phishing scams, the Federal Trade Commission (FTC) recommends using security software on devices, keeping cellphone software updated, and regularly backing up data. If an email appears suspicious, individuals are advised to check for typos, verify the sender's identity, and exercise caution with messages that contain generic greetings, billing problem claims, or prompts to click on links. Furthermore, the FTC encourages reporting phishing scams at ReportFraud.ftc.gov.

This incident serves as a reminder that even organizations can be susceptible to fraud, and all must remain vigilant to safeguard against phishing attacks.

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