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NEWPORT – T City of Newport has recently discovered that it was the victim of a fraudulent web-based scheme that resulted in the wrongful transfer of approximately $330,000 in city funds, according to a press release.
The city has notified appropriate law enforcement authorities. The matter remains under active investigation.
“This is a deeply concerning situation,” Mayor Keith Cambell said. “We recognize this could represent a significant loss of taxpayer dollars. We take our responsibility to safeguard public funds extremely seriously.”
Preliminary findings indicate that the funds were obtained through a sophisticated online scam, according to the city. At this time, there is no evidence that residents’ personal information was compromised. The incident appears to be limited to municipal financial transactions.
The City is taking the following immediate actions:
• Reporting the matter to local, state enforcement and other appropriate authorities.
• Initiating a comprehensive review of internal financial controls, policies, and procedures.
• Identifying and implementing additional safeguards for electronic payments and vendor verification processes.
See the March 3 issue of The Miner for the latest on this story.
