ARAB, Ala. — The City of Arab says it was the victim of a sophisticated fraud scheme last week, resulting in a $432,739.21 payment being sent to an unauthorized recipient connected to the construction of the city’s new Recreation Center.
City officials say an unknown individual or group, posing as a legitimate officer of FITE Construction—the contractor building the center—successfully misrepresented themselves and caused the fraudulent payment.
The City confirmed the incident was a one-time occurrence involving invoice fraud. No personal, employee, or citizen data was accessed or compromised. The matter was strictly limited to the financial transaction…