Town recovers $378,470 stolen by hackers (updated)

Michael Valkys reports:

Town of Poughkeepsie officials Thursday night announced the town has recovered more than $378,000 in town funds alleged to have been stolen by cyber thieves.

Supervisor Patricia Myers announced the recovery at a special Town Board meeting at Town Hall. She read a brief statement after the board’s approximately one-hour executive session.

“The Town of Poughkeepsie is pleased to announce that, with the assistance of TD Bank and various law enforcement authorities, the $378,470 which was diverted by cyber theft has been restored.”


Myers had been critical of TD Bank officials for not catching the theft, but praised the bank during Thursday’s announcement.

Town officials have said they implemented new security measures after the thefts were discovered.

“The town has reviewed and updated its internal computer systems and it recognizes the integrity and security of TD Bank’s online banking system,” Myers said

Read more in the Poughkeepsie Journal.

Update: Reporter Michael Valkys follows-up on how nobody will say how the funds got restored, but one hypothesis is that the bank just restored the funds:

Asked Friday whether the funds were recovered from an overseas bank or provided to the town by TD Bank from its own funds, police Chief Thomas Mauro said, “I can’t say,” but added “TD Bank made our account whole.”

Jennifer Morneau, a TD Bank spokeswoman, declined to answer when asked where the town’s restored funds came from, citing customer confidentiality rules.

“The loop has been closed and we’re happy to still have a good relationship with the town,” Morneau said.

Rafael Prieto, resident agent in charge at the Secret Service’s White Plains office, also declined to say whether the restored funds came from TD Bank or if they were recovered from an overseas account.

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