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Council orders investigation after $40,000 vendor‑payment cyber fraud
Summary
Citing a recent scam that diverted $40,000 of city funds, the Gardner City Council authorized a charter investigation into vendor onboarding and EFT modification processes and directed the council president to assign a counselor to lead the review.
The Gardner City Council on June 15 authorized a formal investigation into process failures after an external actor successfully posed as a city vendor and diverted roughly $40,000 into a fraudulent account.
Council President Tyros introduced the item under City Charter section 25, telling members the treasurer's office and law enforcement were involved and that the city "will likely be made whole" but that process failures required scrutiny. "When a vulnerability like this is exposed, we must act to protect taxpayer dollars," Tyros said as he moved the investigation.
The motion empowered the council president to assign a councilor to lead a formal review of vendor onboarding and electronic funds transfer (EFT) modification processes across departments, identify internal-control vulnerabilities and report back with actionable recommendations. Councilor General (recorded in the minutes as the councilor who spoke to the item) emphasized the sophistication of modern scams and the need for staff training and stronger safeguards.
The council voted in favor of the investigation on a voice vote.
Next steps: The council president will assign a councilor to conduct the investigation and report findings and recommendations to the full council; the motion specifically instructed that the review avoid interfering with any active police investigation.
