Scam caller steals nearly $1.1M from City of Aurora payroll accounts: officials

AURORA - A social engineering scam led to nearly $1.1 million in fraudulent transfers from the City of Aurora’s payroll bank accounts, prompting an investigation, officials said.

What we know:

A city employee received a phone call April 29 from someone posing as a bank representative.

Officials said the caller appeared legitimate and used deceptive tactics that prompted the employee to disclose sensitive account information.

After discovering the call was fraudulent, city officials notified law enforcement and the city’s financial institution. The city also hired outside cybersecurity experts to assist with the investigation.

Law enforcement agencies are working with financial institutions to recover some of the funds, while city leaders are coordinating with partners to identify those responsible and pursue recovery options.

Officials said the city has insurance coverage to help offset financial losses related to incidents of this nature.

What we don't know:

Officials have not said exactly how much money was lost in the scam or how many employees may have been affected.

What's next:

City officials said there is no evidence the city’s network or data systems were compromised. They are awaiting the results of the financial institution’s forensic audit to determine whether any employee data stored on city systems was affected.

"Employees will be promptly notified if any of their information is determined to have been affected by this incident," city officials said. 

The city said it will continue strengthening internal procedures, security measures and employee training programs to help prevent similar incidents. The investigation remains ongoing.