US hunts scammers, traces funds to Hong Kong, Nigeria, others
The United States government has filed a civil forfeiture case to recover $5.3 million related to a business email compromise (BEC) scheme that defrauded a Massachusetts workers' union.
In January 2023, a fake email caused the union to transfer $6.4 million to a bogus account.
The cash were subsequently transferred to various overseas banks and cryptocurrency exchanges.
US investigators seized funds from seven domestic accounts linked to the scheme.
These statements were made in a news release issued on Wednesday and retrieved from the United States Attorney's Office, District of Massachusetts website on Thursday.
"BEC fraud schemes pose a substantial threat to organizations and individuals across the country, causing victims enormous financial and emotional harm by misusing trusted communication channels they use on a daily basis.
"Today's civil forfeiture action indicates that if victims report such misbehavior to authorities, we may be able to recover stolen funds.
We hope today's action restores some stability and justice to individuals affected by fraud," said Acting U.S. Attorney Joshua S. Levy.
In addition to advising "members of the public who believe they are victims of a cybercrime - including cryptocurrency scams, romance scams, investment scams and business email compromise (BEC) fraud scams - should contact USAMA.CyberTip@usdoj.gov."
According to the press release, the fraudulently obtained funds were then transferred through a network of intermediary bank accounts, with some funds transferred or attempted to be transferred to a cryptocurrency exchange or various bank accounts in Hong Kong, China, Singapore, and Nigeria.
"The United States filed a civil forfeiture action today to recover approximately $5,315,746 alleged to be the proceeds of a business email compromise (BEC) scheme targeting a Massachusetts workers union, as well as property used in money laundering."
"According to the complaint, in January 2023, a workers union in Dorchester got an email asking a change of payment details from someone it assumed worked for an investment consultancy firm.
"The complaint further claims that the email came from what looked to be the consulting firm's legitimate email address but was actually a faked email address that had been modified by one letter. The faked email directed the workers' union to make a $6,400,000 transfer to a different bank account than was previously arranged, which the workers union did, in fact, do.
The fraudulently obtained monies were then allegedly transferred through a series of intermediary bank accounts, with some cash being sent or attempted to be transmitted to a cryptocurrency exchange as well as bank accounts in Hong Kong, China, Singapore, and Nigeria.
"Investigators were able to trace proceeds of the scheme to seven domestically held bank accounts, the contents of which were subsequently seized by U.S. authorities," it continued.
According to NigerianWatch Online, this declaration indicates that the US government is pursuing legal action to reclaim monies allegedly obtained through illicit ways.
To pursue the case, multiple law enforcement agencies and prosecutors must work together.
The statement also emphasizes the legal process involved in civil forfeiture, stating that the government must submit evidence to substantiate its case before any forfeiture can be ordered by the court.
Other parts of the release read, "Acting US Attorney Levy; Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department's Criminal Division; and Andrew Murphy, Special Agent in Charge of the US Secret Service, Boston Field Office, made the announcement today."
"The civil forfeiture action is being prosecuted by Assistant U.S. Attorney Matthew M. Lyons of the Asset Recovery Unit, as well as Trial Attorneys Jasmin Salehi Fashami and Adrienne E. Rosen of the Justice Department's Money Laundering and Asset Recovery Section."
"The accusations in the lawsuit, as well as the complaint's description, are simply allegations that particular property is forfeitable.
"The United States must prove, by a preponderance of the evidence, that the property is forfeitable. If the United States prevails, the court will order that all potential claimant interests be lost.
A BEC scheme is a sophisticated fraud technique that targets firms that accept wire transfers as payment.
BEC scams impact huge multinational organizations, governments, and people, with current global daily losses estimated at around $8 million.
Criminals compromise legitimate company email accounts using a variety of hacking techniques, including social engineering and the deployment of malware.
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