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City reports frozen funds after suspected cyber-fraud; criminal investigation underway
Summary
City officials reported a suspected cybersecurity breach that led to an attempted fraudulent electronic funds transfer of about $450,000. The police chief said the funds are frozen in a bank account and investigators, with the district attorney, are working to recover them and pursue a potential suspect.
During the Nov. 4 meeting City Manager Dan reported that the city experienced a cybersecurity breach that resulted in an apparent fraudulent electronic funds transfer of approximately $450,000. The police chief briefed the council that a bank fraud-detection call alerted staff to the transaction and officers immediately worked to freeze the account where the funds were sent. "We immediately put a freeze on the account," the chief said, adding that the person who opened the account cannot access the money and that the department is coordinating with the district attorney’s office as part of an active criminal investigation.
The chief said investigators have information on a potential suspect who "obtained access into our system," but emphasized that the investigation is ongoing and the department cannot yet say whether an arrest will be made. City Manager described recovering the funds as a process that requires coordination with prosecutors and banks due to criminal-process constraints.
Council members responded positively to the update and expressed relief that the funds were located and frozen. No formal action or vote was taken beyond directing staff and the police department to continue the investigation and report back as appropriate.
