Estimate of money lost in Nueces County Courthouse phishing scam grows to $2 million

(This story was updated because an earlier version included an inaccuracy.)

Correction: A previous version of this story used an incorrect term to refer to the phishing scam.

Detectives in the Nueces County Sheriff’s Office are investigating an email phishing scam that recently attacked the Nueces County Courthouse, resulting in a loss of about $2 million.

Nueces County Sheriff J.C. Hooper stated during a phone interview on Aug. 22 that an individual from the county’s Risk Management office estimated that about $58,000 had been lost in the scam, but that amount has increased substantially since the investigation started.

During a news conference on Aug. 27 at the Nueces County Courthouse, interim County Auditor Constance Sanchez told reporters that the county has stopped all wire transfers to avoid future potential fraud.

All future payments to Nueces County will be made by paper format until further notice, except for payroll, she said.

Experts are conducting a forensic investigation, she said.

“We are sharing this with you as a warning to our community, because if Nueces County, with all of its security measures, can be scammed, anyone can,” Sanchez said.

She said residents can report suspected fraud by calling 1-800-CALL-FBI or 1-800-225-5324.

Nueces County Judge Connie Scott said during a phone interview on Aug. 22 that a fraudulent email caused a single check to be transferred from the department to a bank.

Neither the interim county auditor nor the county sheriff commented during the news conference on Aug. 27 on whether the source of the scam had changed.

When the Caller-Times spoke with Scott on Aug. 22, she said that the county is working with the bank to recoup the lost check, and that the county Information Technology Department was aware of the situation and working to clear any affected computers.

Hooper reiterated the judge’s comment on Aug. 27.

“There’s a lot of moving parts to this, and it’s something we take very seriously,” he said. “Our ultimate goal is to recoup all finanial losses and also prosecute those accountable.”

The scam comes after county officials had to contend with a forensic audit of the county’s local government operations that uncovered an elevated fraud risk and $3.75 million in unauthorized transfers and loans that were made to the health insurance fund without the commissioners’ knowledge.

After the audit, the Nueces County Board of District Judges removed County Auditor Grayson Meyer from his position, and the county hired Sanchez for the role on an interim basis.

The IT department is on “higher alert” to watch for possible fraudulent emails or communications that enter the department’s network, Scott said.

The Nueces County Information Technology Department has not responded to requests for comment.

More: Nueces County examines fraud risk, irregularities from former county auditor’s office

This article originally appeared on Corpus Christi Caller Times: Estimate of funds lost in Nueces County phishing scam now $2 million