Mobile, Ala. – City officials disclosed that a fraud scheme diverted $14.7 million to a criminal operation that pretended to be an employee of B.L. Harbert International, the construction company behind the Regions Arena project. The loss, which approaches $15 million, has prompted a multi‑agency investigation into how the city’s electronic transfer was authorized.
Possible compromise of contractor’s email system
Retired FBI supervisory agent Darren Mott, who now runs two cybersecurity firms, told FOX10 News that the fraudsters demonstrated a high level of skill. He explained that the criminals may have infiltrated B.L. Harbert’s email network and taken control of the legitimate employee’s account that serves as Mobile’s point of contact.
“If a knowledgeable hacker gets inside a system, they can change the email ‘rules’ so that any email from the city of Mobile goes into a folder that only the fraudsters have access to,” Mott said. “Who checks their email rules on a regular basis? Nobody, right?”
How the scheme unfolded
According to city statements, the fraudsters spent months gathering information before initiating the wire transfer. They reportedly sent an email that appeared to come from a new B.L. Harbert employee, using a domain that closely resembled the contractor’s official address. City staff, trusting the message, processed the payment to the fraudsters’ account.
Mott added that the criminals also used phone calls to verify details with city supervisors. He suggested the possibility of AI‑generated voice cloning, noting that modern technology makes it easy to mimic a person’s speech patterns.
“If they were able to communicate with the city of Mobile on phone calls, it is likely they were using AI cloning, voice cloning, to make it sound like the person that they were trying to, obviously, impersonate,” Mott said.
City response and next steps
Mobile Mayor Spiro Cheriogotis said the city is still gathering facts and declined to comment on whether any “partner agencies” have been compromised. He emphasized that the city will work closely with law‑enforcement partners to determine the full scope of the breach.
City officials have not released detailed technical findings, but they are urging all contractors and vendors to review their email security settings and to verify any changes to routing rules. The mayor’s office also reminded employees to treat unexpected payment requests with heightened scrutiny.
What residents can do
While the investigation continues, officials recommend that anyone receiving unusual emails or phone calls related to city business contact the appropriate department directly, using known phone numbers or email addresses. Residents are also encouraged to report suspicious activity to the Mobile Police Department’s cyber‑crime unit.
The incident underscores the growing threat of sophisticated cyber‑crime targeting municipal operations. As Mobile works to recover the lost funds, the city’s leadership is focused on tightening cybersecurity protocols to protect future transactions.
Original reporting: FOX10 WALA Mobile (news) — read the source article.
