Web Scam Bilks State of Utah Out of $2.5M 138
KitB sends in a story in the Salt Lake Tribune that tells of a Web-based scam, resembling some used by Nigerian gangs, that snared the state of Utah. $2.5M was sent to a bank account in Texas before the bank raised a question and then froze $1.8M in the account. "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 [found] names of African origin or connections to that continent. Michael Kessler, ... a forensic accounting [investigator] 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.'"
Everyone (Score:5, Interesting)
Everyone who did not oppose this scam upon hearing about it should be fired or regulated to a minimum wage job at the bottom of the totem pole.
There is simply no excuse for wasting that much money that us taxpayers were forced to give to them. Even if they spent $2.5 million on a golden water fountain in an obscure park, at least the people could use it. No one except the scammers will get any use out of this money.
Read the article- Not the usual Nigerian scam (Score:5, Interesting)
Already there are lots of people making silly comments about how stupid the state must be to fall for a 419 scam. But this wasn't a 419 scam or anything like it- the fraudsters submitted paperwork to change the bank account information for a group with which the state already did business and then submitted a bunch of fake invoices. The state paid the bills. They should have had more things in place to protect against these kinds of fraud, but this wasn't a case of idiotic gullibility or greed.
Re:Everyone (Score:1, Interesting)
I find it hard to believe that this scam originated in Nigeria. It seems like just regular organized crime fraud to me. It's not as if accounts payable departments of corporations and governments have never run into falsified invoices to be paid to fictitious companies before. That the perpetrators had enough information to get the bank accounts changed, makes it seem like an inside job to me. I just don't see the Nigerian connection, other than the "African origin" of the names on the search warrant(?).
Re:Everyone (Score:3, Interesting)
Maybe this is just me, but I don't find this scam as laughably lame as others here. Big corporations with $500+M in sales likely have controls in place to prevent this type of thing, sure, but how about state and local governments, universities, small and mid-size businesses, mom and pop establishments... many could be victimized by this type of thing.
Re:So why didn't God intervene? (Score:4, Interesting)
Yeah; I was a bit surprised by that "+5 Informative" rating. But I clicked on it and got the details. Only one mod was "Informative". Another was "Funny", which was what I was going for. The other was "Underrated", which has me a bit puzzled.
And I well remember when I was little, and was sent to Sunday School at several different churches as we moved around every few years. In every one of them, I heard "teaching" that if you truly believe in God, and pray to Him (and tithe ;-), you'll get very rich. Lots of other religious people have, so you can, too.
Blame the IT guys? What a prick. (Score:5, Interesting)
I love this guy's quote: "Their IT guys should have known better."
Yeah, right..Blame the IT people, because they most certainly are the ones who decide who gets paid...
I think it's either that whoever fucked up figures the ol standby excuse of "blaming IT" will work in almost any situation....Or is it the old "those IT nerds, they're supposed to be smart - they should've warned us, those confounded proton jockeys!"
Re:Mormons... (Score:2, Interesting)
You must not get around much.....
I wouldn't trust a Mormon on a business transaction if my life depended on it.... particularly if they mentioned their religion as a part of their introduction and especially if they started the business transaction with a prayer.
And I'm Mormon!
I swear, Utah is second only to Nigeria for scams, and almost everybody I know has been burned at least a couple of times in their lives. Most of the scams are dreamed up by fellow Mormons to boot, as non-Mormons don't hold a candle to the true con artists.
I'm not saying that all Mormons are con artists, but if only 1% of them are, they become quite visible even if the other 99% want nothing to do with these idiots.
Re:Read the article- Not the usual Nigerian scam (Score:3, Interesting)