EdConnection

EdConnection

Be aware of EFT scams related to school facilities projects

10/24/2022

The Ohio Facilities and Construction Commission has become aware of scam attempts in which an outside party claims to be a contractor or subcontractor requesting a change in bank accounts to receive electronic funds transfer of payments. These attempts to steal funds have included phone calls from individuals demonstrating some knowledge of the project participants and processes and providing false email and bank account records to convince project participants to transfer pending and future payments to a different bank account. 

Project participants (architects, engineers, construction managers, contractors, subcontractors, owners, school districts) also report outside parties contacting them and seeking a list of contacts for projects. Often, these requests are the initial steps to carry out this scam. By learning enough about the status of the project and the directory of participants, scammers later attempt to scam one of the parties.

If contacted by phone or email to change the routing of project payments to a different account, independently verify through trusted project partners before taking any action. This may include requiring in-person changes to bank accounts to occur during a standard project meeting. 

In addition, if contacted by a suspicious party seeking information about a project and its participants, ask questions to determine who the party is before a release of any funds. Also alert the project's core team of any requests or attempts. 

To protect organizations from this type of fraud, the FBI advises to be on the lookout for the following red flags that may indicate possible fraud: 

  • Unexplained urgency; 
  • Last minute changes in wire instructions or recipient account information; 
  • Last minute changes in established communication platforms or email account addresses;
  • Communications only in email and refusal to communicate via telephone or online voice or video platforms; 
  • Requests for advanced payment of services when not previously required; and 
  • Requests from employees to change direct deposit information. 
Fraud incident victims should immediately contact their financial institution to request a recall of funds. Regardless of the amount lost, file a complaint with www.ic3.gov. Business email compromise or email account compromise victims should contact BEC.ic3.gov as soon as possible.