The US government has taken legal action to recover $5.3 million associated with a business email compromise (BEC) scam that defrauded a Massachusetts workers union. The scheme, which unfolded in January 2023, involved a spoofed email prompting the union to transfer $6.4 million to a fraudulent account. Following this, the funds were funneled through multiple international banks and cryptocurrency exchanges.
In a press release issued by the United States Attorney’s Office, District of Massachusetts, Acting U.S. Attorney Joshua S. Levy emphasized the serious threat posed by BEC fraud schemes, which exploit trusted communication channels to cause financial and emotional harm. The civil forfeiture action, he stated, aims to recover stolen funds and provide some measure of justice to the victims.
The statement urged individuals who believe they have fallen victim to cybercrime, including BEC fraud scams, to contact USAMA.CyberTip@usdoj.gov for assistance. It outlined how the fraudulently obtained funds were moved through intermediary bank accounts, some of which were directed to a cryptocurrency exchange or various bank accounts in Hong Kong, China, Singapore, and Nigeria.
The legal action filed by the United States seeks to recover approximately $5,315,746 allegedly obtained through the BEC scheme, along with properties involved in money laundering. It detailed how the fraudulent email, disguised as communication from an investment consulting firm, instructed the workers’ union to redirect funds to a different account, ultimately controlled by the fraudsters.
The investigation traced proceeds from the scam to seven domestically held bank accounts, which were subsequently seized by U.S. authorities. The case involves collaboration between law enforcement agencies and prosecutors to pursue justice.
The statement explained the legal process of civil forfeiture, noting that the government must provide evidence to prove its case before any forfeiture can be ordered by the court. It highlighted the role of Assistant U.S. Attorney Matthew M. Lyons and Trial Attorneys Jasmin Salehi Fashami and Adrienne E. Rosen in prosecuting the case.
Finally, the release provided insight into BEC schemes, describing them as sophisticated fraud schemes targeting businesses that use wire transfers for payment. BEC schemes have global ramifications, affecting corporations, governments, and individuals, with daily losses estimated at approximately $8 million. Criminals employ various hacking techniques, including social engineering and malware, to compromise legitimate business email accounts and perpetrate these scams.
