Arab Police Chief discusses $430k fraud scheme

ARAB, Ala. (WHNT) — Almost half a million taxpayer dollars are now in the wrong hands, according to City of Arab officials.

On Friday, the City of Arab admitted that it was the victim of a “sophisticated, socially engineered phishing scheme” after finding out that a $432,739.21 payment connected to the construction of the new recreation center was fraudulent.

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The city said a person falsely claimed to work for Fite Building Company and sent a fraudulent invoice to a city employee.

Arab Police Chief Shane Washburn said it appears to have happened through a phishing email.

“It appeared to be from an actual employee of Fite construction,” Washburn said. “Everything about the email appeared to be very authentic and genuine.”…

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