EDITORIAL: Bank blocked scam on ABQ
Jul. 27—Albuquerque taxpayers have 1.9 million reasons to thank Wells Fargo Bank, and cause for concern about who is watching the city's till, according to an investigation by the city's Office of Inspector General.
It's become a common scam. Imposters pose as a legitimate business and attempt to get a large entity to change banking information on file for the legitimate business so the next payment goes to the imposter. Luckily, Wells Fargo in March flagged such a $1.9 million fraudulent transaction aimed at Albuquerque. In 2017, the city paid a swindler $420,000 in a similar scheme.
The OIG said that, in the recent scam attempt, two city staffers involved in processing paperwork "demonstrated a dereliction of their duties." An accounts payable coordinator violated procedure and practice on three occasions leading up to the payment, and a city accounting manager approved the banking change. It's worth noting the fraudulent email seeking the banking account change had typographical errors.
Unfortunately, few of these con artists are caught and the money is rarely recovered. Adhering to strict financial protocols is the best defense.
The city is investigating, but it's a good thing Wells Fargo had its guard up.
This editorial first appeared in the Albuquerque Journal. It was written by members of the editorial board and is unsigned as it represents the opinion of the newspaper rather than the writers.
