Nigerian web scam bilked Utah out of $2.5M

Jolie77

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Nigerian web scam bilked Utah out of $2.5M

Experts: 'Their IT people should have known better.'

By Nate Carlisle

The Salt Lake Tribune
Posted: 02/12/2009 05:23:01 PM MST

Thieves apparently used a Nigerian-based scam to steal $2.5 million from the Utah treasury, covering their tracks by using intermediaries and a church address.

A Salt Lake Tribune review of the names listed in a search warrant as receiving or transferring money have names of African origin or connections to that continent. Michael Kessler, president of Kessler International, a forensic accounting and investigation agency in New York City, said the thieves appear to have used a simple scam that originated in Nigeria about five years ago.

The Utah theft is the first time he's seen a government victimized.

"Their IT people should have known better," Kessler said after reviewing a copy of the search warrant Thursday. "It sounds like any kid could have done this."

In one case investigated by Kessler's firm, thieves used computer software transmitted by e-mail to monitor financial information input by the chief financial officer of an Ohio insurance firm. Once they had the information, they diverted insurance payments to their bank account. About $1 million was stolen.

At least one address listed for the perpetrators in an affidavit filed with the warrant appears to be false. While it lists a Duncan N. Ongaga living on the second floor at 18 Union Ave. in Irvington, N.J., Irvington police detective Chris Jenkins on Thursday said the address is for a church -- and there's no second floor. Irvington police have no record of someone by that name.

John Reidhead, the director of the Utah Division of Finance, on Wednesday said his division has added procedures to verify direct deposit information and made other changes to prevent future fraud.

The search warrant, made public this week in Salt Lake City's 3rd District Court, said someone in August obtained a vendor number for the University of Utah's design and construction department. They then forged the signature of the department's director and submitted paperwork to the state of Utah changing the department's bank account information.

Fraudsters logged onto a state Web site and submitted invoices to the state on behalf of the campus department. When the state paid the invoices, the money went to a Bank of America account in Texas.

The thieves reaped $2.5 million before the bank called the state to inquire why such large payments were going to the account.

The search warrant says the Texas account was opened by a man with a Minnesota driver's license. The warrant also makes reference to a truck driver, and a search of business records shows another name in the search warrants has a registered trucking company in Arlington, Texas.

Kessler said the thieves may have recruited intermediaries to open the accounts and transfer the money. The account holders may not have participated in the theft itself or known where the money came from, Kessler said.

Once the money moved to Texas, the warrant says, several checks were written to various people.

Attempts to contact any of the people listed in the search warrant Thursday as receiving or transferring money were unsuccessful.

Once the fraud was discovered, a Texas bank froze $1.8 million of the stolen funds. It's unclear how much of the remaining money has been recovered. The Attorney General's Office has declined to comment on the investigation or any arrests that may have been made in connection with it.
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http://www.sltrib.com/news/ci_11691598


I could not believe the irony of this article! :laugh2:
 
maybe the thief has a kind heart and donates part of that 2.5 million to the woman with 14 kids and give welfare a break!

sorry.

that article says it might have been able to be done by kids. they should have paid better attention.
 
I think some people should be fired, and probably will be once this investigation is completed.

Now that a state government has been defrauded of millions - the FBI and CIA now have a higher incentive to go after these Nigerian scams and shut these guys down permanently. Obviously this is an international crime so it is going to be extremely difficult to track these down.
 
Dixie said:
I think some people should be fired, and probably will be once this investigation is completed.

Now that a state government has been defrauded of millions - the FBI and CIA now have a higher incentive to go after these Nigerian scams and shut these guys down permanently. Obviously this is an international crime so it is going to be extremely difficult to track these down.
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I agree, It's difficult to track those Nigerian scammers down.

But, the irony of this is - The government tells us and warns us to be keen of these typical Nigerian scams. Yet, This is the first time a government office has been victimized of this.

I just could not believe this and found it to be asinine. That's why I found it to be funny at the same time.
 
I got email

i am prevent to scam. I am upset to Nigera. I told police will caught to person. i complaint to person stubborn because not spam I am charge to police. I tell police. I am happy i wil go to talk to police said Fraud !

That is not funny


My friends told me scam for niegra that is not good bad person...
 
Jolie77 said:
I agree, It's difficult to track those Nigerian scammers down.

But, the irony of this is - The government tells us and warns us to be keen of these typical Nigerian scams. Yet, This is the first time a government office has been victimized of this.

I just could not believe this and found it to be asinine. That's why I found it to be funny at the same time.
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Yeah, I agree. I mean, they tell us to be careful of Nigerian scams and they tell us all the obvious signs of a Nigerian scam, yet they got bilked themselves? They knew all the signs, and yet got scammed? I wonder if the IT people even had any college education, if they're that dumb enough to get bilked. *smh* They deserve the Darwin award.
 
I told I am serious I got scam becaus my friends give me charge but I am not accept to niegra. I called to police told me charge inspector find Neigra. I spoken to police. that's not funny i serious i am not happy I am scared. I am upset. I told fraud. Don't be scam for money. That isnot good warned to prevent to people bad things. I don't like scam. I warned to someone is hurt to you. That is not funny
 
smithtr said:
I told I am serious I got scam becaus my friends give me charge but I am not accept to niegra. I called to police told me charge inspector find Neigra. I spoken to police. that's not funny i serious i am not happy I am scared. I am upset. I told fraud. Don't be scam for money. That isnot good warned to prevent to people bad things. I don't like scam. I warned to someone is hurt to you. That is not funny
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Travis, as long as you don't reply to the email, and you don't give that person ANY of your personal information, and just delete the email, you will be fine. Relax. I have gotten so many Nigerian scam emails and I have never replied to any of them and I have deleted all of them, and nothing has happened to me. My money is fine. All you have to do is make sure you NEVER give out ANY kind of personal information in any email to ANYONE. Same goes for IM messages. As long as you don't give out that kind of information, you will be fine.
 
Welcome to the 419 Eater to fight back those spammers. I actually did replied to one who was using deaf in the subject lines so I kept asking questions and he kept replied and iput the bank numbers as 12345678910......then he replied he can't access that account.
 
Isn't Utah a Mormon state?

Greed is one of the 7 sins.

Guess greed got the best of them! :giggle:
 
Sheesh :roll:

Stupid people should have known that. One of my co worker was thinking about it and I told him it's a scam anyway and why fall for it!? I think IT people think that they had experiment using company's money on scam. What a joke they had

Catty
 
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