Homeless Shelter Scammer Makes Off With More Than $18,000

BOULDER, CO -- The City of Boulder and the Boulder Shelter for the Homeless were the target of an unknown email scammer earlier this month who made off with $18,333.33 in funds, according to a city press release. The scammer gained unauthorized access to the email system of Boulder Shelter for the Homeless, impersonated Shelter staff and sent email requests to the City of Boulder to change the bank account information used by the shelter to receive city human services funding. The city processed the change and later transferred $18,333.33 to the fraudulent account as part of a routine payment to the Boulder Shelter.

City staff responded quickly and contacted the city’s bank in an attempt to reverse the payment, but the funds have not yet been recovered. The city has also opened a police investigation and has put additional measures in place to be more vigilant in the face of aggressive cyber-attacks and scams. The city plans to continue to closely monitor accounts payable transactions and provide additional training to staff on financial procedures and verification protocols.

Last year, the City of Boulder bolstered its financial procedures to help make transactions more secure. In this situation, it appears that financial procedures to verify the authenticity of the request to change bank information were not followed, according to the city's press release. The Finance Department is conducting an internal investigation related to the fraudulent activity and the failure to comply with city procedures.

Do you like this article? Join the Boulder Patch on Facebook! Stay in touch with the news and events that shape Boulder County. Sign up for your free Patch newsletter here.

Photo credit: Shutterstock