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After regional fraud at CSWD, South Burlington staff outline finance and IT safeguards
Summary
Representatives described a recent fraudulent invoice scheme at the Champlain Solid Waste District and South Burlington staff reviewed local finance checks (vendor onboarding, PaymodeX, PO approvals) and upcoming NetSuite improvements to reduce risk of similar scams.
City and regional officials discussed a recent external fraud incident at the Champlain Solid Waste District (CSWD) in which payments were routed to a fraudulent account after emails mimicking a vendor included altered account information. Paul, speaking for CSWD, said investigators believe the incident was external and that the FBI and local police are investigating.
"We do believe it was totally external," Paul told the council, describing how an email link with a slightly different account number led staff to transfer funds to an unexpected account. South Burlington finance and IT staff explained the city's multilayer payment controls: vendor W‑9 requirements, purchase order approvals routed to departments, PaymodeX for vendor inflow, and bank reconciliation steps that verify checks against transmitted payment files. Staff noted that PaymodeX carries liability for vendor banking information and that the city's new NetSuite finance system will further tighten purchasing workflows.
