NEW HAVEN, Conn. — The city of New Haven suffered a $6 million theft in a cyber attack earlier this year it was announced Thursday. To date, law enforcement officials have recovered over half the money.
Officials said the cyber attack targeted the Board of Education's Chief Executive Officer and Chief Operating Officer in what was described as a "business email compromise." Thieves got access to the CEO's email in late May. In June, they made six successful and one failed attempts to steal money by watching conversations and inserting themselves in the discussion to steal money.
They impersonated the COO and vendors to make requests for electronic transfers, one of them a transfer to First Student bus service for $5.9 million, and another for Shipman and Goodwin law firm for more than $76,000.
The thieves attempted again in July with payment for SJ Cleaning services for work at the New Haven Police Department.
Officials first became aware of the thefts when First Student asked when they would receive the funds.
$3.6 million of the money has been recovered, after officials contacted the FBI which is working to recover more of the money.
The city has stopped electronic transfers of money with the exception of payroll until further notice. City officials said they are working with law enforcement to bring the criminals to justice. They are also working to strengthen computer security systems by engaging several outside companies.
“Where hackers gain access to a user account, watch conversations, and then insert themselves in the conversation in an attempt to steal money," said New Haven Mayor Justin Elicker. “In each of the instances, hackers inserted themselves into conversations and using the COO’s email, impersonated the COO, and several vendors to make requests for electronic transfers.”
Insurance carriers have been put on notice about the loss and internal reviews have been put in place to make sure all employees follow procedures. One employee has been out on paid administrative leave however, officials do not believe any of the employees have been involved in the hacking itself.
Officials said the thieves essentially stole money from the students.
“The individual or individuals that did this are criminal. They are unbelievably unethical to not only steal money from the public but steal money from New Haven Public School children.," said Elicker. “It is just shocking to me how much greed there is in this world today. And that someone would so deliberately do such a thing is just tragic.”
Doug Stewart is the Senior Digital Content Producer at FOX61 News. He can be reached at dstewart@fox61.com.
Have a story idea or something on your mind you want to share? We want to hear from you! Email us at newstips@fox61.com
HERE ARE MORE WAYS TO GET FOX61 NEWS
Download the FOX61 News APP
iTunes: Click here to download
Google Play: Click here to download
Stream Live on ROKU: Add the channel from the ROKU store or by searching FOX61.
Steam Live on FIRE TV: Search ‘FOX61’ and click ‘Get’ to download.