Submission + - How scammers took a Winnipeg town for $430k via bitcoin
In early December 2019, the cybercriminals sent a phishing email to multiple people at the municipal office of WestLake-Gladsone, a municipality about 150 kilometres west of Winnipeg, on the southwestern shore of Lake Manitoba.
At least one person clicked on the link, which allowed the hackers to get into the municipality's computers and bank accounts.
But weeks went by and nothing happened, so the municipality didn't report it to the police. It was only after the money disappeared that the municipality discovered the two incidents were connected, said Halashewski.
Court documents say that on Dec. 19, 2019, a person logged into the municipality's bank account and changed the password, along with the personal verification questions.
Over the next 17 days, the cyberattackers added the 18 "employees" hired as payees and began systematically making withdrawals, transferring the money to the employees' credit cards.
Dozens of withdrawals were made, totalling $472,377, according to court documents — a considerable amount for a municipality with an entire annual budget of $7 million.
Those withdrawals weren't discovered until Jan. 6, when Halashewski saw 48 bank transfers — each less than $10,000 — going to unfamiliar accounts.
Maybe cryptocoins should be banned until there is a legit use for them?