SLGFD staff has just learned of a fraud scheme that may involve governments across the country. We know of at least one government here in NC that was contacted but fortunately experienced no loss.
Perpetrators are pretending to be from a legitimate vendor of the government and convincing government staff to change the bank account number that the electronic vendor payments are being sent to. Apparently they have all the necessary identification and information (tax ID numbers, copies of the governments change request forms, etc.) that makes the request seem very legitimate. They seem to be focusing on larger governments and larger dollar payments. In the article linked below you will see that the focus was on a very large construction project. However, this does not mean that smaller governments are in the clear.
How can you make sure you do not fall victim to this type of fraud? First, do not accept any request to change vendor information at face value, particularly payment addresses and/or bank account information. We strongly recommend that you contact the vendor directly to verify any request to change this type of information. Second, keep an observant eye on your statements from your vendors. You will see in the article that the way this fraud was discovered was by the vendor contacting the government requesting payment on an account that was in arrears per the vendor's records. The government had, of course, made payment to an account that it believed belonged to the vendor. By monitoring statements for outstanding balances you can catch this type of fraud much earlier than by waiting for the vendor to contact you with the news that your account has not been paid.
Please take a moment to read this article:
If you have any questions or concerns, please contact us at (919) 814-4299.