Massive $4.8 Million Cyber Heist Shakes Small New Jersey Town, Local Officials Tricked by Sophisticated Email Scam

The complicated email scam cost a town in Middlesex County $4.8 million. Local officials say that a criminal pretended to be trusted contacts and moved money to Spotswood school district and borough accounts that weren’t supposed to have it.

Mayor Rich O’Brien told people that a “third-party cyber criminal” fooled school and borough employees into thinking they were making financial transactions. Authorities say that a complex email spoofing scheme that looked like real communications kept officials in the dark until the money was sent.

They got back more than $1.7 million, including two fake transfers, but $3 million is still missing. The fake payment on October 10 was $1,474,820.70, and the transfer that was stopped in mid-September was $233,000. There is still an investigation going on into most of the stolen money, but some of it has been found by the police and the school district’s lawyer.

Superintendent Jeffrey Bicsko said that cybercriminals did not get into the district’s computer network or personal information. Bicsko said, “This was a planned and intentional crime that took advantage of trust, not a technical failure of our systems.” These steps would not have stopped this scam, but the district is making it easier for people to use technology and follow the rules about money to stop future attacks.

Officials have told the community that the district’s finances are stable, even though money was stolen. Insurance companies have also been told to cover some of the losses. According to Mayor O’Brien, state money may pay for the rest. The Middlesex County Prosecutor’s Office and the police in the town are looking for the people who did it.

There are 8,300 people living in the 2.5-square-mile Spotswood borough. Schools in the area get $37.3 million to help 1,425 students. After this cyberattack, the borough made its IT and financial security stronger to stop more from happening.

Cybercrime is especially bad for small towns, and targeted fraud can destroy budgets. Town leaders hire lawyers and accountants to help them get money back and keep residents and taxpayers safe.

Sources

• Statements from Spotswood Mayor Rich O’Brien

• Letters and comments from School Superintendent Jeffrey Bicsko

• Local news reporting and community updates