Massachusetts Workers Union Scammed Out of $6.4M; Funds Traced to Nigeria, Other Countries

A business email compromise (BEC) scheme has defrauded a Massachusetts workers union of $6.4 million, with funds transferred to accounts in Nigeria and other international locations, according to the U.S. Secret Service.

The U.S. Department of Justice has filed a civil forfeiture action to recover about $5.3 million believed to be proceeds from this scheme. In January 2023, the union, based in Dorchester, Massachusetts, received a fake email that appeared to come from its investment manager. This email instructed the union to change the beneficiary bank account for a $6.4 million payment.

The stolen funds were transferred through several intermediary accounts, with attempts to move money to a cryptocurrency exchange and bank accounts in Hong Kong, China, Singapore, and Nigeria. Investigators traced the proceeds to seven domestic bank accounts, which have now been seized.

Principal Deputy Assistant Attorney General Nicole M. Argentieri, Acting U.S. Attorney Joshua S. Levy for the District of Massachusetts, and Special Agent in Charge William Mancino of the U.S. Secret Service announced the investigation.

Understanding BEC Schemes

BEC schemes involve criminals hacking or using social engineering to compromise business email accounts. They send fraudulent emails to trick recipients into transferring funds to illicit accounts. Often, spoofed email domains, with one altered character, are used to deceive recipients.

Preventative Measures and Reporting

To avoid becoming a victim of BEC schemes:

• Carefully verify email addresses, especially on mobile devices.
• Confirm any payment changes directly with the intended recipient via phone or in person.
• If victimized, contact your bank immediately to request a recall or reversal and file a complaint with the Internet Crime Complaint Center at http://www.ic3.gov.

The Internet Crime Complaint Center, operated by the FBI, is the primary hub for reporting cybercrime and provides updated information on BEC trends and other fraud schemes.

A civil forfeiture complaint is an allegation, and the U.S. government must prove that the funds are subject to forfeiture in a civil proceeding.

For more information on BEC schemes and how to protect yourself,visit http://www.ic3.gov.