The Department of Justice recently announced a significant recovery of approximately $5.3 million for a union that fell victim to a business email compromise scheme. This recovery comes after a civil forfeiture complaint was filed by the U.S. government in June 2024, seeking to reclaim the funds lost in the scam.
The incident took place in January 2023 when a workers union based in Dorchester, Massachusetts, was tricked into transferring $6.4 million. The union received a fake email that appeared to come from its investment manager. This misleading message prompted the union to send money to an incorrect bank account controlled by a third party.
Once the funds were transferred, the money was quickly moved through several intermediary bank accounts. Some of the funds were even sent or attempted to be sent to a cryptocurrency exchange and various foreign banks in places like Hong Kong, China, Singapore, and Nigeria.
Investigators traced the proceeds of this scheme to seven bank accounts within the United States, which were later seized by authorities. The case was investigated by the U.S. Secret Service, with assistance from the Justice Department’s Criminal Division and the U.S. Attorney for the District of Massachusetts.
This case highlights the growing threat of email scams that target organizations, particularly unions and businesses. It serves as a reminder for all entities to remain vigilant against such fraud attempts.