Owners and Contractors Beware! Electronic Payments in Construction Are Subject to Increased Fraud
Post date
May 01, 2019
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By Andrew J. Natale and Michael B. Pascoe, Hahn Loeser & Parks LLP
The construction industry, not surprisingly, continues to be a prime focus for fraudulent internet and email schemes, spear phishing tactics, and other sophisticated scams designed to direct funds from the contractor’s intended account into an account created to permit swift transfers of funds overseas. Construction projects undoubtedly are targeted because they routinely involve large monthly billings for labor, materials, and equipment. Furthermore, many large projects are the subject of press releases, media coverage, and public and internet marketing campaigns that make it easy to identify projects, owners, and funding sources."