The Harpswell Select Board has notified the community of a “cybersecurity fraud incident” in which town staff issued a large payment to a scammer posing as a legitimate vendor.

“The town recently became the victim of a fraud scheme in which it received fraudulent payment instructions that were made to appear as if they came from a vendor, diverting $189,199 of municipal funds away from the intended recipient,” select board Chairperson Kevin Johnson said during a board meeting on May 21.

Upon discovering the fraud, the town took several “immediate” steps, Johnson said, reading a statement signed by all three board members. Town officials reported the incident to local and federal authorities, who have opened an investigation. The town also notified its insurance carrier, legal counsel and auditing firm.

The investigation is ongoing, Johnson said.

“The town is fully cooperating with law enforcement and pursuing all available avenues for recovery,” he said.

Harpswell staff are also reviewing and strengthening the town’s “internal payment authorization and verification protocols” to guard against similar schemes in the future, he said.

“As the matter involves an active law enforcement investigation, we’re not in a position to provide additional details at this time,” Johnson said. “The town will issue further public updates when circumstances permit.”

Harpswell Anchor reporter J. Craig Anderson is a veteran journalist whose work has earned state, regional and national awards.

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