Mobile, Alabama loses $14.7 million to vendor impersonation scam

The City of Mobile, Alabama, has fallen victim to a business email compromise scam, resulting in the transfer of $14.7 million to a fraudulent entity. The scam involved fraudsters impersonating a legitimate vendor associated with the construction of the city’s new $300 million Regions Arena. The perpetrators reportedly built trust through emails, phone calls, and documents before tricking city staff into executing a single wire transfer.

Mayor Spiro Cheriogotis announced that one city employee has been terminated and two others have been placed on paid administrative leave following the incident, though he noted there is no evidence of an “inside job.”

The FBI and the U.S. Secret Service are currently investigating the matter alongside a forensic accounting firm and a law firm. City officials stated that the loss will not impact the city’s overall financial stability due to strong reserves, and construction on the Regions Arena project is expected to continue within budget.