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Municipalities in this part of Pennsylvania generally feel insulated from the problems affecting big cities. For the most part that is true, especially regarding crime and the challenges -- financial and otherwise -- associated with providing needed municipal services.
Even the issues of cities such as Altoona and Johnstown are of minor scope compared with those being dealt with by New York, Chicago, Los Angeles and Atlanta, for example.
Municipalities large or small and those of any size in between have one thing in common, though, the need for an adequate amount of revenue to prop up the budgets on which their existences depend. Most don't have an extra dollar to squander, or lose due to being victimized by crime.
But the Federal Bureau of Investigation has reported that communities last year were among entities that fell victim to a swindle that cost an estimated $3 billion.
Here are several places that have been victimized by the "business email compromise" scam and the amounts of money involved, according to a July 24 Wall Street Journal report:
– Surfside Beach, S.C., $545,598, in March of this year.
– Lexington, Ky., $3.9 million, in 2022.
– Peterborough, N.H., $2.3 million, in 2021.
Such information needs to serve as a major caution to all communities -- in this region and beyond -- no matter what safeguards they purportedly have in place. Surfside Beach's situation, which was the main focus of the July 24 Journal report, shows why.
Here is how the Journal began its report:
"The trap began with a routine bureaucratic ritual: the head of a family-run contracting company and a small town public-works director trading emails about when the municipality would cut a six-figure check for utility work.
"Lurking online, a cybercriminal pounced. Someone posing as a company employee emailed the director to request an electronic transfer. Days later, the town sent $545,598.30 to a Utah bank account."
At that moment, Surfside Beach became a victim of the swindle that would not be unmasked until late April.
Now, Surfside Beach leaders are being bombarded with community anger questioning their competence. Such anger is not unusual for a community of Surfside Beach's size and the large amount of money involved.
Surfside, which often is referred to as the "Family Beach," because of its laid-back nature, is located near Myrtle Beach and is home to approximately 4,300 year-rounders.
As of July 24, when the Journal's report was published, the Surfside Beach crime had not been solved. Lexington, Ky., was luckier: According to the Journal, authorities seized all of it from a private bank account, and the crime led to five federal convictions.
Meanwhile, Peterborough, N.H., recovered just $650,000. Officials dipped into reserves and cut spending; insurance did not reimburse the community for its loss.
Cyber intruders use what the Journal referred to as "a typical toolbox" for their crimes.
"To time their strikes, they set up flags on infiltrated email systems so they see when payment-related messages land," the Journal said. "They also route legitimate emails to trash so only the fraudster's voice gets through."
Timothy Lynch, the FBI's chief of the Cyber Enabled Fraud and Money Laundering Unit, said artificial intelligence is empowering scammers. He said AI smooths syntax and diction, helping overseas scammers with poor English.
Probably the best policy for communities here and beyond is to follow Lynch's experience-based observation that human verification is essential.
"Call a known number to ensure a request is authentic," he said.