A New York bank is being sued after scammers stole $15.5 million from a water and fire utility company’s account. The lawsuit claims the bank was incredibly negligent.
How the Heist Happened
Garden City Park Water and Fire says a scammer, pretending to be a company employee, emailed First National Bank of Long Island (now ConnectOne Bank) in July. The scammer requested forms to authorize new wire transfers. The bank allegedly approved the request, even though the signatures on the returned forms were obviously fake.
Within four hours, the thieves moved 85% of the utility company’s account balance – a total of $15.5 million – to accounts in the US, China, and Mexico. They made 15 transfers, 10 of which exceeded the bank’s $2 million daily transfer limit.
Blaming Game
Garden City Park Water and Fire says the bank showed “shocking incompetence and negligence.” Their lawyers called the situation “every bank customer’s nightmare.” They’re suing the bank to make them responsible for the loss.
ConnectOne Bank (formerly First National Bank of Long Island) is pointing the finger back at the utility company, claiming the theft was due to “unauthorized access to banking information within the customer’s control.” They say they followed proper procedures.
The Aftermath
Authorities have recovered $4.4 million, leaving ConnectOne Bank on the hook for $11.1 million. This is a significant loss for a bank managing $14 billion in assets.
