The City of Miami Beach was the victim of bank fraud involving approximately $3.6 million being electronically transferred from one of its bank accounts at SunTrust. The City is working with SunTrust and law enforcement agencies to investigate the incident and recapture the stolen funds. Steps have been implemented to strengthen security, including opening a new bank account, implementing fraud controls, discontinuing some payment methods, and removing two staff members. The City Manager is also conducting an internal investigation and will take further measures to protect the City.
The City of Miami Beach was the victim of bank fraud involving approximately $3.6 million being electronically transferred from one of its bank accounts at SunTrust. The City is working with SunTrust and law enforcement agencies to investigate the incident and recapture the stolen funds. Steps have been implemented to strengthen security, including opening a new bank account, implementing fraud controls, discontinuing some payment methods, and removing two staff members. The City Manager is also conducting an internal investigation and will take further measures to protect the City.
The City of Miami Beach was the victim of bank fraud involving approximately $3.6 million being electronically transferred from one of its bank accounts at SunTrust. The City is working with SunTrust and law enforcement agencies to investigate the incident and recapture the stolen funds. Steps have been implemented to strengthen security, including opening a new bank account, implementing fraud controls, discontinuing some payment methods, and removing two staff members. The City Manager is also conducting an internal investigation and will take further measures to protect the City.
The City of Miami Beach was the victim of bank fraud involving approximately $3.6 million being electronically transferred from one of its bank accounts at SunTrust. The City is working with SunTrust and law enforcement agencies to investigate the incident and recapture the stolen funds. Steps have been implemented to strengthen security, including opening a new bank account, implementing fraud controls, discontinuing some payment methods, and removing two staff members. The City Manager is also conducting an internal investigation and will take further measures to protect the City.
Mayor Philip Levine and Members of the City Commission
FROM:
Jimmy
DATE:
December 21, 2016
L. Morales,
City
Manager/
cJ
SUBJECT: ACCOUNT
This Letter to Commission is to inform you that the City has been the victim of bank fraud with respect to one of our bank accounts at SunTrust. I learned two days ago that one or more third parties obtained relevant account information and were able to access the Automatic
Clearing House ( ACH) system through various transactions to illegally have approximately 3. 6 million electronically transferred from our account to other banks. We are working very closely with SunTrust, who has already submitted claims to the correspondent banks that received these transfers to have such funds returned. We have also engaged our Miami
Beach Police Department and the FBI to conduct a full investigation. I will inform you as we
receive pertinent, public information, and certainly update you regularly on the status of the recapture of the funds. The law enforcement agencies involved have advised that we limit any comments on the investigation pending the results of their work.
We have also taken steps to protect the City moving forward. We have implemented the following: Opened new general depository bank account and pending closing current one. Set up UPIC, a unique account identifier issued by financial institutions that allows organizations to receive electronic payments without divulging confidential banking information.
Implemented ACH Fraud Control which allows the City to set parameters for which ACH transactions are allowed. Gives the City the tools needed to monitor electronic payments and block unauthorized ACH debits before they post to our account. Unless pre- authorized, discontinued ACH payments. Discontinued ACI with MasterCard payments.
Instituted a daily review and reconciliation of all non- check disbursements.
Removed two accountable staff members.
I am personally conducting a full investigation into where our internal controls may have failed and will take further appropriate measures, when and if necessary. Please do not hesitate to contact me if you have any questions. I apologize for this situation the City whole.
