The city of Athens recently fell victim to a sophisticated cyber attack, resulting in the loss of over $700,000. This incident is part of a disturbing trend in Ohio, where many local government offices have been targeted by cyber criminals, leading to significant financial losses.
The cyber scam in Athens involved scammers gaining access to the email system of Pepper Construction, the company responsible for building the city’s new fire station. By monitoring email exchanges between Pepper Construction and city employees, the scammers were able to insert themselves into the conversation and convince the city to change the payment method to direct deposit into their bank account. As a result, the city transferred the funds directly into the scammer’s account, and the money was quickly moved offshore, making it difficult to trace and recover.
This type of cyber scam is alarmingly easy to execute, as shown by a report from the FBI indicating that Ohio lost close to $200 million to cyber crimes in 2023. The prevalence of such attacks highlights the need for increased vigilance and cybersecurity measures in both the public and private sectors.
In response to the growing threat of cyber scams, the state auditor’s office has issued warnings to government agencies to be more vigilant and to verify any changes in payment methods independently. The office also announced plans to investigate such crimes and hold individual employees accountable for losses if they are found to have neglected cybersecurity protocols.
As for the possibility of recovering the lost funds, the city of Athens has filed a lawsuit against the anonymous scammers in an attempt to retrieve the remaining $350,000 still in the bank account. Additionally, the city has cyber attack insurance, and an investigation by the insurance company is underway to determine how much of the losses can be recovered through insurance coverage.
The incident in Athens serves as a stark reminder of the real and devastating consequences of cyber attacks, and the importance of implementing robust cybersecurity measures to protect public funds and sensitive information. With cyber crimes on the rise, it is crucial for organizations and individuals to remain vigilant and take proactive steps to prevent falling victim to such scams in the future.