Baltimore City investigates $1.5M fraud scheme amid FBI probe

Baltimore City officials are grappling with a significant fraud incident involving over $1.5 million, stemming from a sophisticated cyberattack and identity theft scheme. The fraud was detected on March 13, when a bank flagged two payments meant for a city vendor that were diverted to an unassociated account. The perpetrator, who impersonated a vendor employee, established trust with city officials over several months before changing banking information and cashing a payment of $803,000 in February. While the second payment of $721,000 was reversed, the city has yet to recover the first payment. In response, the city is implementing new security measures and reviewing existing protocols, with the investigation now being led by the FBI. Officials have not disclosed the vendor's name but indicated that they are a regular contractor for the city's Department of Public Works.