SMALL CITY IN TEXAS RIPPED OFF FOR NEARLY HALF-A-MILLION BUCS

Fraudulent electronic transfer results in $450K stolen from city of Manvel

 

By James T. Norman 

Community Impact

Oct 28, 2024

 

 

The city of Manvel lost $450,000 as a result of a cybersecurity breach, officials said October 28.

The city of Manvel lost $450,000 as a result of a cybersecurity breach, officials said Oct. 28.

The city is working with the Federal Bureau of Investigations and the Texas Financial Crimes Unit to find the suspects and recover the money, according to the Oct. 28 release. Officials also clarified no personal information of residents has been compromised.

What we know

The breach happened after suspects got into the city’s email system, manipulating its email communications and rerouting an electronic payment, according to the release.

The hope is the city will find the suspects through the investigation to both recover the stolen funds and strengthen the city’s cybersecurity infrastructure going forward, according to the release.

As a result of the breach, the city is also conducting a “thorough review” of its email systems and transfer protocols to identify any weaknesses in its system.

“Our priority is the safety and security of the city of Manvel’s financial assets and information systems,” city officials said in the release. “We are committed to taking all necessary measures to rectify the situation, recover the funds, and protect against future breaches.”

The city is encouraging its employees and vendors to remain vigilant for suspicious email activity, according to the release.

The details

 

Manvel approved its fiscal year 2024-25 budget in September, Community Impact previously reported. The city’s general fund is around $15.8 million. However, the city adopted a balanced budget, meaning there was no planned surplus revenue.

At the end of FY 2023-24, which was Sept. 30, the city expected to have roughly $10.1 million in its fund balance for the general fund, according to budget documents. The fund balance is meant for emergencies or major one-time purchases that can’t be paid for using current budget funds. Officials try to maintain at least six months worth of revenue in the city's balance fund.

What they said

Manvel Mayor Dan Davis told Community Impact on Oct. 28 he was “deeply concerned” about the breach and confirmed the city is working with law enforcement officials.

“The safety and security of your tax dollars are our top priorities, and we are committed to transparent updates as we address this incident,” he said.