City of Chetek Recovers $2.6 Million Wire Fraud Payment

City of Chetek officials say they have recovered $2.6 million dollars that was lost in a wire fraud scheme last November.

According to a press release from the city, officials believed that the November, 2023 transfer was a legitimate payment for construction costs at the Chetek Wastewater Treatment Plant. It was only after sending the money that they recognized the fraud scheme.

Officials believe that the perpetrators of the fraud created fake email accounts meant to resemble the email accounts of the contractor on the project, Market & Johnson. After a thorough investigation, officials determined that the city’s computer systems had not been infiltrated by the perpetrators of the fraud. They believe the fraudsters used the fake email accounts to target a separate private company that is involved in the wastewater treatment plant project and sent that company fraudulent wire instructions.

In response, the city has implemented new cybersecurity measures and will provide additional phishing training for its employees.

The City of Chetek also says they took out a loan to cover the effects of the fraud and keep the wastewater treatment plant construction going. Officials say the project suffered no delays, nor did any other city services.

The press release did not contain any information about the identities of the fraudsters, but did note that the city is working with its legal counsel to assess what options it has going forward. Due to the severe and criminal nature of the case, officials declined to provide any further information on the matter.