CLARK FORK, Idaho – Clark Fork is trying to recover $483,000 after the city mistakenly transferred funds to a scammer impersonating a construction contractor’s manager. The scam occurred earlier this month when the city paid a bill to contractors for excavation work done during the summer.
“In this case, everything took place through an email,” said Jay White, a Clark Fork City Councilman.
White explained that the perpetrators contacted the contractors from the city engineers and impersonated the contracting agency that had done the work. The impersonation seemed legitimate, leading city staff to initiate the payment, which the city’s bank authorized on November 18.
Shortly after the payment was made, the contractor became suspicious of a fraudster impersonating its manager and alerted the city.
“The office called our bank and requested a stop-payment or a reverse-payment on the amount,” White said. However, they are unsure if that will work out and are waiting to see if the request will be approved.
White stated that the FBI and Secret Service are investigating this act of fraud. However, citing Department of Justice policies, the FBI could not confirm or deny their involvement in an investigation.
Clark Fork isn’t the only town in Idaho experiencing this issue. Business Insider reports a similar scheme targeting the town of Gooding in southern Idaho, where more than a million dollars was taken. With FBI assistance, the majority of the funds were returned.
As for Clark Fork, if the scammers succeed, recovering the money will take a “creative maneuver,” White added.
Officials expect to learn the outcome of the payment by Monday.
