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Town of Plymouth falls victim to costly ‘social engineering scam’

Two payments in the amount of $104,150 were sent to scammers and have not yet been returned. The town's finance director subsequently resigned.
Credit: FOX61

PLYMOUTH, Connecticut — The Town of Plymouth is searching for answers after it recently fell victim to a “social engineering scam,” according to a Facebook post from the Office of Mayor Joseph Kilduff.

Two payments, each worth $104,150, were reportedly sent to scammers and have not yet been returned. Kilduff said that he recently met with the town’s finance director, and both individuals mutually agreed it was in the town’s best interest for her to resign immediately.

According to Kilduff, one of the town’s vendors was hacked by fraudulent actors over a month ago, and the breach went unnoticed. The scammers were given access to project information and began sending the Finance Department invoices that appeared to be accurate.

“Unfortunately, the invoices came with incorrect payment instructions that were not properly verified by the Finance Department,” Kilduff said in the post.

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The town reported the incident to its local police department, the Federal Bureau of Investigation and its insurance company. An investigation is ongoing, Kilduff said.

“There is no suspicion of criminal activity by any town employee, and if we do experience a loss, it will be covered by our insurance,” Kilduff said on Facebook. “Our fund balance continues to get healthier, and this will have no impact on our ability to maintain services or pay our obligations.”

Kilduff said that a search for a new finance director will begin promptly, and Twin Lakes Consulting, which consults with the town for its tech and HR services, has agreed to help in the interim.

UPDATE:

On Aug. 29, the Plymouth Police Department issued the following statement: 

"In August of 2024, Plymouth police were made aware that a town vendor was victimized by cybercriminals and had their emails compromised. The perpetrators were able to utilize the compromised emails to fraudulently obtain funds from the Town of Plymouth. The Plymouth police are currently investigating the incident."  

RELATED: Warning issued about scam offering bill 'discount' for Eversource customers: CT officials

RELATED: DCP warns about scams targeting Eversource customers; United Illuminating customers are also at risk

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Dalton Zbierski is a digital content producer and writer at FOX61 News. He can be reached at dzbierski@FOX61.com

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