CINCINNATI (WXIX) – Cincinnati was scammed out of $137,000 in what city officials say was an electronic payment made to a third party who, as it turns out, impersonated a contractor’s office administrator, city records show.
Law enforcement was alerted, and an internal audit and investigation are underway, City Manager Paula Boggs Muething wrote in a memo Wednesday to Mayor John Cranley and City Council.
The memo, titled “Investigation into Electronic Funds Transfer to DOTE Contractor” is posted on the city’s website.
City administration was alerted late last week to suspected fraudulent activity related to an approximately $137,000 construction draw payment intended for a Department of Transportation and Engineering contractor, according to the memo.
“Upon being alerted by the contractor that the payment was not transmitted, Internal Audit commenced an investigation and uncovered evidence that the City received a fraudulent communication from a third party who impersonated the contractor’s office administrator,” Boggs Muething wrote.
“The counterfeit communication requested an update to the company’s electronic fund transfer information for an upcoming construction draw, and it ultimately resulted in an approximately $137,000 payment being processed in September based on the false request and information. Upon discovery of the suspected fraudulent activity, the City Administration commenced an investigation, alerted law enforcement, has taken and will…
