An eastern Iowa city clerk unknowingly paid $33,000 to scammers after falling for a fraudulent email scheme. During a special meeting on July 16, Swisher’s city clerk, Shelley Annis, informed council members that she had mistakenly paid fake invoices, thinking the email was legitimate.
On June 26, Annis received an email with invoices totaling $33,000, which she believed was from HR Green Inc. in Cedar Rapids—a company she receives invoices from regularly. Then, on July 3, she received another email instructing her to switch from paying by check to using Automated Clearing House (ACH). She questioned the change, but unfortunately, her concerns were directed to the scammer.
On July 9, Annis set up the payment, and the funds were transferred. However, a few days later, she had a sudden feeling of doubt.
“On the morning of the 11th, I woke up with a gut feeling. Was that legitimate? I checked the email right away and then noticed a difference,” Annis said.
The City of Swisher has cybercrime insurance coverage through the Iowa Communities Assurance Pool (ICAP), which is the insurance program for Iowa public entities. While the insurance is expected to cover the loss, the city will still have to pay a $10,000 deductible.
Johnson County Sheriff Brad Kunkel confirmed that the case is under investigation, and a subpoena for records has been issued. He also noted that fraud is a growing issue in the area.