DORCHESTER, MA—The Justice Department initiated a civil forfeiture action today to reclaim approximately $5,315,746.29, alleged to be proceeds from a business email compromise scheme involving a workers union based in Dorchester, Massachusetts. The union was deceived into transferring $6.4 million due to a spoofed email from its investment manager purportedly.
In January 2023, the union was misled by an email that changed the beneficiary bank account for the $6.4 million payment, directing the funds to an account controlled by the fraudsters. The stolen money was then moved through various intermediary bank accounts and, in some instances, attempted to be transferred to cryptocurrency exchanges and banks in Hong Kong, China, Singapore, and Nigeria. Investigators have successfully traced and seized the proceeds in seven domestically held bank accounts.
This case underscores the growing problem of business email compromise schemes, which target organizations using wire transfers. These schemes often involve compromising legitimate business emails through hacking, social engineering, or by creating “spoofed” email addresses that closely mimic legitimate ones. Daily global losses from business email compromise schemes are estimated at around $8 million.
The U.S. Secret Service is leading the investigation into this case, with the Justice Department’s Money Laundering and Asset Recovery Section managing the forfeiture process. The public is urged to remain vigilant, verifying sender email addresses and confirming payment instructions directly with recipients to avoid similar frauds.
