Friday, September 25, 2020
76.8 F
Ocala

City recovers $700,000, incurs net loss of $5,000 from email phishing scam

The City of Ocala will recover more than $700,000 and incur a loss of just $5,000 after an email phishing scam earlier this year resulted in funds being misdirected to a fraudulent account.

The recovered funds, which total $717,677.14, represent nearly 97% of the original amount that was misdirected as a result of a Business Email Compromise that took place in Oct. 2019. The payment, which was just under three-quarters of a million dollars ($742,376.73), was diverted from Ausley Construction Co. to a separate, fraudulent account posing as the business.

Since discovering the incident, the City has worked with local and federal agencies, filed insurance claims and made procedural changes within their departments to minimize future impacts.

The difference in funds remains at $24,699.59. After the City pays a $5,000 deductible, its insurance coverage will pay the remaining $19,699.59, which means the city will only incur a net loss of $5,000 from the incident.

The City has implemented the following processes and procedures to minimize future risk and exposure:

  • Electronic Fund Transfers (EFT) emailed to the City without verification will not be processed;
  • All vendor information changes will be processed through a department other than the one in which the request was received, and senior level management will have final review before changes are made;
  • An electronic workflow process has been created to review changes made to vendor EFT payment elections and a manual verification process will occur before changes are finalized;
  • Vendors with pending changes will be suspended until an authentication process has occurred at the department level;
  • Periodic internal audits will be conducted on any recurring input changes to serve as a third-level security measure.

A criminal investigation related to this business email compromise is still ongoing.

For more information about the city and its departments, visit the City of Ocala website.

Photos in Ocala, Florida

Crime

Fort McCoy man jailed after being found passed out behind wheel of running RV

A Fort McCoy man was charged with DUI after being found passed out in his RV with the engine running and in reverse in his driveway.

Third time a charm for Ocala man charged with battering woman

A Marion County sheriff’s deputy responded to an Ocala home three times in a shift before arresting a 52-year-old man for allegedly beating up a woman in the early morning hours Sunday.

Ocklawaha man accused of battering woman, threatening neighbor, resisting arrest

A 57-year-old Ocklawaha man is behind bars after he allegedly battered a woman and held her against her will, threatened to shoot a neighbor in the head, and wound up being tased while resisting arrest.

Silver Springs woman admits to shoving pregnant woman to keep her from drying blanket

A Silver Springs woman was arrested after she admitted to battering a pregnant woman because she wouldn’t stop running a blanket through the family dryer.

Business

Ruby Tuesday adds to growing list of closures along State Road 200

Ruby Tuesday recently closed the doors on its Ocala location, adding to a list of national companies with local closures along State Road 200 that dates back nearly a year.

Sovereigns and Scoundrels opening in former Doc of Rock location in downtown Ocala

Sovereigns and Scoundrels will open its doors at the former Doc of Rock location in downtown Ocala next week.

CareerSource CLM report shows unemployment rate improvement last month

The local unemployment rate improved in August, but is still much higher than it was at this same time last year, according to a new report from CareerSource Citrus Levy Marion.

Waffle House opens new location on Maricamp Road

Waffle House has opened the doors on a new location along Maricamp Road in Marion County.

Subscribe for email updates

* indicates required

Headlines

Fort McCoy man jailed after being found passed out behind wheel of running RV

A Fort McCoy man was charged with DUI after being found passed out in his RV with the engine running and in reverse in his driveway.

Third time a charm for Ocala man charged with battering woman

A Marion County sheriff’s deputy responded to an Ocala home three times in a shift before arresting a 52-year-old man for allegedly beating up a woman in the early morning hours Sunday.

14 more local COVID-19 deaths as 87 new cases reported in tri-county area

COVID-19 has claimed 14 more local victims as the tri-county area reported 87 new cases of the virus Thursday.

Ocklawaha man accused of battering woman, threatening neighbor, resisting arrest

A 57-year-old Ocklawaha man is behind bars after he allegedly battered a woman and held her against her will, threatened to shoot a neighbor in the head, and wound up being tased while resisting arrest.

More headlines