By The United States government has initiated a civil forfeiture action to recover approximately $5.3 million in funds allegedly obtained through a business email compromise (BEC) scheme that targeted a Massachusetts workers union. The scheme, which took place in January 2023, involved a spoofed email that deceived the union into transferring $6.4 million to a fraudulent account.
According to a press release from the United States Attorney’s Office, District of Massachusetts, the fraudulently obtained funds were then routed through various intermediary bank accounts, with some of the money being transferred or attempted to be transferred to a cryptocurrency exchange and bank accounts in Hong Kong, China, Singapore, and Nigeria. US authorities have successfully seized the contents of seven domestic accounts connected to the scheme.
Acting U.S. Attorney Joshua S. Levy emphasized the severe threat posed by BEC fraud schemes, stating that they cause significant financial and emotional harm to victims by exploiting trusted communication channels. He also highlighted the importance of victims reporting such misconduct to the authorities, as it may enable the recovery of stolen funds and help restore stability and justice for those affected by fraud.
The press release advises members of the public who believe they are victims of cybercrime, including cryptocurrency scams, romance scams, investment scams, and BEC fraud scams, to contact the United States Attorney’s Office via email at [email protected].
The civil forfeiture action is being prosecuted by Assistant U.S. Attorney Matthew M. Lyons of the Asset Recovery Unit, along with Trial Attorneys Jasmin Salehi Fashami and Adrienne E. Rosen of the Justice Department’s Money Laundering & Asset Recovery Section. The United States must prove, by a preponderance of the evidence, that the property in question is subject to forfeiture. If successful, the court will order all the interests of any potential claimant forfeited.
BEC schemes are sophisticated fraud schemes that target businesses using wire transfers as a form of payment. These schemes affect large global corporations, governments, and individuals, with current global daily losses estimated at approximately $8 million. Criminals compromise legitimate business email accounts through various hacking methods, including social engineering and the use of malware.
The announcement underscores the US government’s commitment to combating cybercrime and recovering funds obtained through fraudulent means. It also highlights the importance of international cooperation in tackling such crimes, as the funds were traced to accounts in multiple countries.
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