Eagle Mountain City bilked of nearly $1.13M in cybercrime; working to boost security, claim insurance reimbursement

Eagle Mountain City Hall. Image: Google Streets

EAGLE MOUNTAIN, Utah, Sept. 12, 2022 (Gephardt Daily) — Eagle Mountain City was the victim of a cybercrime that resulted in the loss of almost $1.13 million in city funds, officials announced Monday.

The crime occurred in late August, the city’s statement says.

“On Aug. 31, 2022, Eagle Mountain City determined that it was the victim of an organized cybercrime, resulting in the loss of nearly $1.13 million,” it says.

“This crime was orchestrated through an email impersonation wherein the individual(s) responsible were able to portray themselves as a representative of a vendor working closely with the City on a major infrastructure project.

“Eagle Mountain City took immediate action, contacting the Federal Bureau of Investigation, Utah County Sheriff’s Office and the vendor within minutes of learning of the incident. Those affected have been cooperating with authorities.”

Investigators determined “the amount stolen was transacted through an Automated Clearing House (ACH) transfer. Since learning of the incident, Eagle Mountain City has spent significant time strengthening its financial policies regarding ACH payments.”

The changes “are designed to prevent similar incidents from occurring in the future and to implement an added layer of accountability for City staff when completing financial transactions.”

Eagle Mountain had prepared for the possibility of a cybercrime negatively impacting available financial resources by purchasing an insurance policy that deals directly with cybercrimes and attacks, the statement days.

“Eagle Mountain City is working with the insurance company to be reimbursed for the loss,” the statement says. “The City wants to provide reassurance that no resident, client or vendor information was compromised in any way as a result of this incident.”

Those affected will continue cooperating with investigators until the case has reached its conclusion, the Eagle Mountain statement says, adding “At this time no City or vendor employees are under suspicion of wrongdoing.”


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