City of Liberty sends nearly $600K to fraudulent account after fake payment request

HOUSTON - The city of Liberty says it was the victim of a fraudulent wire transfer totaling approximately $600,000 after receiving a payment request from an email address impersonating a legitimate vendor.

The city says its internal network was not compromised, and the incident is now under investigation by local and federal law enforcement agencies.

Fraudulent wire transfer

What we know:

According to a press release from the city, the fraudulent transfer was initiated after the city received a payment request from a lookalike email domain designed to closely resemble a legitimate vendor's email address.

The city had an outstanding debt to that vendor in the same amount as the fraudulent transfer, which contributed to the initial assessment that the payment request was legitimate, officials say.

After the payment went through, the receiving bank alerted the city's bank that the transfer appeared potentially fraudulent.

City officials say their internal network was not compromised, and the incident appears to have originated from an external source using an email domain impersonating the vendor.

The city also says no legitimate party associated with the original debt, including the city, the vendor or any of the city's consultants, is suspected of wrongdoing.

What we don't know:

City officials say they are unable to provide additional details due to the ongoing investigation.

Local, federal investigation

What's next:

The Liberty Police Department is working with federal law enforcement agencies to investigate the fraudulent transaction.

The city says it has filed a claim with its insurance carrier related to the cybersecurity incident.

City officials also say they have strengthened their vendor payment verification procedures and will continue cooperating with federal law enforcement.

LibertyLiberty CountyCrime and Public Safety