[Local-Gov-News] NASACT Fraud Alert: ACH Payments by States - PLEASE READ!

[COY, Brady T]

The Office of the State Treasurer is passing on the following Fraud Alert we received this morning from the National Association of State Auditors, Comptrollers and Treasurers (NASACT).
 

To:  NASACT Members

 

NASACT has recently become aware that a number of states have been potentially defrauded by an elaborate scheme involving ACH payments to certain vendors.  The affected states received fraudulent documents requesting changes to vendors’ bank account information.  Once the bank account information was changed in the state’s accounting system, payments were sent to the new (incorrect) bank account.  One of the defrauded states received a call from the receiving bank’s fraud department to question the new account’s activity.  In this case, the receiving bank’s fraud department did not allow the funds to be transferred.  Therefore, this state did not lose its funds.  However, we are not sure this has been the case in all situations.

 

Funds from at least two of the states involved were re-directed to the same bank and the same bank account.  Please be alert for requests for new ACH setups for vendors that receive large payments and/or bank account changes for vendors with existing ACH information.

 

Please let me know if your state has encountered this type of fraudulent scheme.  NASACT will serve as a clearinghouse so that we can keep everyone better informed.  If you would like more information on the cases identified so far, please call me at (859) 276-1147.

 

Thank you,

 

Kinney Poynter, Executive Director 
NASACT 
(859) 276-1147