The US government is taking legal steps to seize $5.3 million connected to a business email scam that targeted a workers union in Massachusetts.
On Wednesday, the Justice Department initiated a civil forfeiture action to reclaim about $5,315,746.29 in funds believed to be from this scam, along with property linked to laundering these proceeds.
In January 2023, a workers union in Dorchester, Massachusetts, lost $6.4 million after receiving a fake email from someone pretending to be their investment manager. The email instructed the union to change the bank account for their payments.
The stolen funds were then moved through various international banks and cryptocurrency exchanges.
According to a press release from the United States Attorney’s Office for the District of Massachusetts, US authorities have seized money from seven domestic bank accounts connected to the scheme. The release stated:
“The fraudulently-obtained funds were then allegedly transferred through a series of intermediary bank accounts – with some funds sent, or attempted to be sent, to a cryptocurrency exchange and various bank accounts located in Hong Kong, China, Singapore, and Nigeria. Investigators were able to trace proceeds of the scheme to seven domestically held bank accounts, the contents of which were subsequently seized by US authorities.”
Acting US Attorney Joshua S. Levy commented on the action, saying:
“BEC fraud schemes present a serious threat to businesses and individuals nationwide, causing significant financial and emotional harm to victims by exploiting trusted communication channels they rely upon every day. Today’s civil forfeiture action demonstrates that when victims report such misconduct to the authorities, there may be steps we can take to recover stolen funds. We hope today’s action helps restore some level of stability and justice for those impacted by fraud.”
The statement also encouraged people who believe they are victims of cybercrime – including cryptocurrency scams, romance scams, investment scams, and business email compromise (BEC) fraud scams – to contact USAMA.CyberTip@usdoj.gov.
