HARTFORD, Conn. — A Connecticut business that was victimized by a business email compromise scam in May and June lost around $5.4 million, but some of the money is coming back.
On Thursday, Vanessa Avery, the U.S. Attorney for the District of Connecticut, along with Homeland Security Investigations New England, or HSI, announced in a release that the U.S. Attorney’s Office has seized approximately $3,507,191 in funds that were stolen during the scam.
Prosecutors said that a business email compromise scam, or BEC scam, typically involves email spoofing and the creation of email messages with a deceptive sender display name. When criminals engage in a spoofing attack, they send an email header that displays an inaccurate sender address, which is meant to deceive the victim.
The inaccurate sender address is usually someone the receiver knows or trusts, making it easier for a victim to open a malicious link or take a risk that they would not normally take.
In the case of the Connecticut business that was scammed earlier this year, the criminals pretended to be a party to the real transaction and replaced the intended beneficiary account with their own prior to payment, prosecutors said. By changing the intended beneficiary account, the bad actors engaged in a BEC scam.
According to a complaint that was filed this week in U.S. District Court, HSI and the Westport Police Department launched an investigation in July into a BEC scam that victimized the Connecticut business.
Investigators determined that the business received an email from a spoofed email address that was very similar to a general contractor’s actual email address. It included instructions for payment to be made to the general contractor.
Prosecutors said that the business sent around $5.4 million to the bank account as instructed. The company quickly realized and reported the scam to Westport police. HSI was able to trace the stolen funds to nine separate bank accounts, which were then seized by the government.
When a forfeiture complaint is filed, the U.S. Attorney’s Office will seek to forfeit the proceeds of the crime. If successful, it will work with the Department of Justice’s Money Laundering and Asset Recovery Section to return the money to the victim.
Avery said that these cases demonstrate the U.S. Attorney’s Office’s commitment to help victims of crime.
“Working with our law enforcement partners, we will continue to pursue criminal prosecution of the individuals responsible for these crimes, but using civil asset forfeiture, we can expeditiously recover as much stolen money as possible and return this money to victims prior to criminal convictions. Although it can be difficult to come forward and admit you were the victim of a crime, we stand ready to help you to the fullest extend possible,” Avery said.
HSI New England Special Agent in Charge Michael Krol said that BEC scams are sophisticated and difficult to detect. Therefore, they often result in major losses for businesses.
“It is essential that businesses that have been victimized by scammers reach out to law enforcement immediately for the best chance to recovery their lost funds,” Krol said. “Today’s results are a best-case scenario because of the quick action of the business and the dedication of law enforcement working together to track the money, freeze accounts and get the business their money back.”
Kroll added that HSI is using innovative investigative methods to pursue BEC scam cases to return money to victims and gather evidence to bring the criminals to justice.
To avoid becoming a BEC scam victim, one should verify email addresses are accurate when checking mail on a cellphone or other mobile device before opening any attachments or following instructions. Never make payment changes without verifying the intended recipient by phone or in person.
Those who may be victims of a BEC scam should immediately contact their bank to request a recall or reversal and a Hold Harmless Letter or Letter of Indemnity. Then, contact the police.
One can also file a detailed complaint with the Internet Crime Complaint Center, which is run by the Federal Bureau of Investigation and serves as the country’s hub for reporting cybercrime. That link will also provide readers with updated information pertaining to BEC scam trends as well as other cyber fraud schemes.
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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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