Puerto Rico Gov't suspends 3 as Feds probe $4M scam
SAN JUAN, Puerto Rico— Puerto Rico’s government said Friday, February 14, 2020, that it suspended three employees as federal agents investigate an online scam that attempted to steal more than $4 million from the US Territory.
Manuel Laboy, executive director of Puerto Rico’s Industrial Development Company, said rigorous procedures were not followed when the agency received an email alleging a change in banking accounts that prompted someone to transfer more than $2.6 million to a fraudulent account in the U.S. mainland last month.
“We do not take this lightly, and there are consequences,” he said.
Laboy declined to share the names and positions of those suspended, saying only that it was one employee from his agency and two from Puerto Rico’s Commerce and Export Company, which sent $63,000 as part of the scam. He added that the FBI has been able to freeze the money sent, which involves public pension funds.
“This situation did not affect and will not affect pension payments to retirees,” he said.
The scam also targeted Puerto Rico’s Tourism Company, which sent $1.5 million, police have said.
Computer was hacked
José Ayala, director of the fraud unit with the police department’s bank robbery division, said the scam began when someone hacked into the computer of a finance worker at Puerto Rico’s Employment Retirement System in December and sent emails to government agencies. He said government officials realized what had happened when someone at the retirement agency asked why they had not yet received the funds, only to be told they had already been sent.
Ayala said the FBI is investigating how the computer was hacked.
José Quiñones, president of Obsidis Consortia, a nonprofit cybersecurity organization in Puerto Rico, said those types of attacks are common and can be prevented to a certain point.
“No system is 100% safe,” he said, adding that training employees on cyberattacks and keeping software up to date is key.
“This is a well-coordinated attack,” he said. “Where the government failed greatly was in the procedures, not the technology.” (Associated Press)
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8 Responses to “Puerto Rico Gov't suspends 3 as Feds probe $4M scam”
This debt load is like a millstone around its neck that is hamstringing its economic growth development and sustainability. The interest on its loans is staggering. If it does not get debt forgiveness from its creditors or relief from bankruptcy, it will take a long, long time, if ever, to get out of debt. This debt load weighs heavily on its economy, quality of life, standard of living, ability to borrow, service delivery, capital project revitalization, capital project reinvestment, maintenance and operations..........etc, etc, etc.
Though the VI appears to be doing better than its neighbors, let’s not be popping the champagne; it must pay attention to the fire in its nrighbors’ house. The VI has its issues. Despite a $414M budget and a $1B GDP, what has it got to show for it. For example, its infrastructure, ie, roads, water, sewage, drainage, electricity, telecommunications, ports...etc are not First World, though it had the means and opportunity to be First World.
There is a fierce urgency of now to act, for the window of opportunity to capitalize on its good fortune is closing fast. Its main economic pillars are tourism and financial services; both are highly fragile. Financial services is showing some stress fractures that can grow into fissures. And tourism success is a function of the economies in advanced countries. It is highly vulnerable to economic shocks here at home with economic down turns in developed countries. Economic diversification must be atop the heap on the bucket list. Leh us geh ah dun!