Beware of Recent Email Scam Involving Contractors and Counties
Scammers are contacting individual Minnesota counties claiming to be XYZ Contractor and asking for their form to update ACH (electronic) payment information as they are “changing banks.” The scammers are easily determining legitimate connections between the county and contractor from publicly available information.
Good Practice – Authentication: upon receipt of the updated ACH form, most counties are calling the contractor using names and phone numbers they already have on file to validate that the ACH change form came from the contractor. Some even call the new bank to validate the bank-customer relationship.
Poor Practice – No Authentication: upon receipt of the updated ACH form, a county that receives and immediately processes the completed form, then eventually makes a payment to the new, fraudulent bank account, all without authenticating the change with the contractor.