In a recent incident, the Alkmaar Municipality in the Netherlands has fallen prey to CEO fraud, resulting in a loss of €236,000 to cybercriminals. The fraudulent scheme involved a municipal employee receiving a fake invoice and being pressured by the sender to make a swift payment, which unfortunately occurred, as confirmed by the municipality. Upon the discovery of the fraud, further fake invoices were intercepted, and an investigation was initiated.
The investigation revealed no signs of internal fraud. However, it pointed out shortcomings in the administrative process regarding fraud detection and attributed the accelerated payment to the pressure inherent in this type of scam, as stated in a letter from the college of mayor and aldermen to the municipal council (PDF). Additionally, the college has implemented supplementary measures to prevent future CEO fraud attempts.
