The City of Arab says it lost more than $430,000 in a sophisticated phishing scam.
Fraud Targets Recreation Center Payment
According to a statement from Mayor R.D. “Bob” Joslin, the scam involved a fraudulent invoice tied to the construction of the city’s new Recreation Center.
Someone posing as a legitimate officer of FITE Construction caused a payment of $432,739.21 to be sent to an unauthorized entity. The city discovered the fraud internally and launched an immediate review.
Investigation and Security Measures
City officials say no personal, employee, or citizen data was compromised. Only one financial transaction was affected. The city has implemented enhanced verification procedures and additional safeguards to prevent future incidents.
The Arab Police Department, Alabama Law Enforcement Agency, FBI, Department of Homeland Security, and U.S. Secret Service are all involved in the investigation. Arab is also coordinating with its bank and the recipient’s bank to try to recover the funds.
Commitment to Transparency
City leaders noted that similar scams have recently affected other municipalities and school systems, potentially originating overseas. Mayor Joslin emphasized that the city is committed to protecting public funds and holding perpetrators accountable.
He assured residents that this was an isolated financial incident and not a breach of sensitive information. Updates will be shared as the investigation progresses.
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