City Of Moline Gets Over $400,000 From Cyberfraud Incident
Moline has received a $404,764.59 recovery payment from its cyber liability insurance carrier, Tokio Marine HCC, stemming from a December 2020 phishing fraud incident.
That incident resulted in the city sending two fraudulent wire transfers on 12/16 and 12/30 of 2020 for a total loss of $421,119.86. With the assistance of the FBI and U.S. Secret Service, $6,355.30 was recovered. The recovery payment of $404,764.59 is the remainder, minus the deductible of $10,000.
As a result of the incident, the City reviewed all of its internal control policies with the assistance of its auditors and established several review new protocols.
One such protocol is the IT department sending fake phishing emails monthly to employees.
If a phishing email is opened, the employee is immediately provided additional training on recognizing phishing attempts.
“We continue to be proactive in our efforts to protect the city from cyber fraud, phishing and other scams,” said City Administrator Bob Vitas. “Protecting taxpayer money is of paramount importance to all who work for the city.”
