Surfside Beach says contractor payment was likely intercepted in cybercrime case | #cybercrime | #infosec


The Town of Surfside Beach provided an update on Thursday regarding an ongoing cybercrime investigation involving a contractor payment intercepted by cybercriminals.

The statement said investigators have found no evidence that the town’s internal computer network was breached in connection with the incident.

It added that investigators determined the contractor’s system or communications between the parties were likely compromised “or intercepted by other means.”

The investigation began after staff discovered on April 27 that a payment made to a contractor had been fraudulently redirected or intercepted, according to the release.

Town officials said they immediately contacted law enforcement, and the case was referred to the South Carolina Law Enforcement Division (SLED), which launched a criminal investigation with assistance from the FBI.

“The primary objectives of the investigation are to track the stolen funds, identify those responsible, and, if possible, recover all or a portion of the funds,” the town said.

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Officials said law enforcement personnel, insurance investigators and the Surfside technology professionals concluded there was no unauthorized access to the town’s network or IT systems.

Investigators with SLED and the FBI also said this type of cyber-enabled financial crime is part of a broader criminal scheme targeting municipalities and government agencies nationwide, according to the release.

Surfside Beach said it is continuing to work with IT professionals, insurance carriers and legal counsel to strengthen safeguards and help prevent similar incidents in the future.

The town said the investigation remains active and warned that financial crime cases involving electronic transactions across multiple jurisdictions can take significant time to complete.

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Officials said additional information will be released as it becomes available and as permitted by law.



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