Possible Fraud Risk

Thursday, January 30, 2020

Office of Auditor of State

Alert from State Auditor Sand advising governmental entities to be wary of a situation that has recently come to the State office’s attention.  As noted in the Alert, the State office was recently notified by representatives of several entities they have received emails which appear to be from vendors who are currently providing services to them. The emails request a form to change banks to which electronic payments should be directed.

Alternatively, the email advises the vendor has switched financial institutions and directs the entity to change the bank routing information for future electronic payments issued to the vendor. The emails contain logos, contact information, and formatting which are consistent with other communications received from the legitimate vendor. The emails do not ask for immediate payment.  However, if the revised banking information is used for future electronic payments, the payments will be misrouted.   The Alert advises governmental entities receiving such an email to validate the request by calling vendors to independently confirm the instructions.

For more information please follow the link:  https://www.auditor.iowa.gov/media/cms/Auditor_of_State_Alert_Jan_20_DEAE4C861309D.pdf

If you or any of your staff have questions or concerns regarding this matter, please contact the Office of Auditor of State at 515-281-5834.