(CAÑON CITY, Colo.) — Cañon City is investigating with local law enforcement after the city reportedly fell victim to a “fraudulent financial transaction” in July.
According to the City, on July 25, an unspecified amount of funds were sent to a fraudulent vendor who allegedly impersonated a current vendor that does business with the city. City finance staff, IT, the Cañon City Police Department, and City Administration staff responded to contact the City’s banking institution as well as the Federal Bureau of Investigation, Federal Trade Commission, and other investigative partners.
“This quick action by City staff and outside agencies resulted in the fraudulent bank account being frozen,” the City said. “The City has been working with its bank and the bank of the fraudulent account to recover the funds.”
The City said it had been informed on Aug. 1 that “almost all” of the funds had been secured and would be returned, with only $210 anticipated to be unrecoverable.
“The City has processes and procedures in place to prevent incidents like this from happening
and an internal investigation is taking place to evaluate the event and the procedures,” the City said.
A law enforcement investigation into the fraudulent transaction is underway, the City said.