MARGATE – The Margate Police Department this week issued a stark warning alerting the public there are bad actors trying to scam funds through a fraudulent wire transfer scheme.
According to Police Chief Matthew Hankinson, the scammers are likely international hackers preying on unsuspecting property owners in Margate and elsewhere who are in the process of seeking city approvals for building projects.
“It’s happening all over the country,” Hankinson said. “That’s why we put out the scam alert.”
Recent phishing scams, which often seem legitimate, were reported in Lincoln, North Dakota; Charleton, New York; Fort Wayne, Indiana; and in nearby Northfield.
According to Zoning Officer Roger McLarnon of the Margate Planning Department, the bad actors are obtaining names and addresses from planning and zoning applications that are posted on municipal websites in an effort to promote transparency and keep residents informed about what’s happening with new developments in their neighborhoods.
“We currently require planning board applications and plans be submitted in pdf format so they can be posted on our website,” McLarnon said. “We are considering not posting the applications online anymore and only posting site plans and floor plans.”
Letters requesting wire transfers are being mailed to the applicants noting their application has been reviewed and approved by the “Planning and Zoning Commission” and that they should wire a fee to get it on the official agenda, which in at least one case was nearly $5,000.
McLarnon said one applicant sent a check to the scammer and was heartbroken when he found out he was ripped off for such a large amount of money.
The phishing scam first became apparent in June, McLarnon said.
“After one of the Planning Board meetings, everyone got hit,” he said. “So we sent emails to applicants and attorneys we do business with saying we did not send out anything and that they should contact their attorney before complying with the request.”
McLarnon said the city notified the police, which created the scam warning flyer and posted a redacted scam letter on the department’s Facebook page to alert property owners about the potential for a cyber crime.
McLarnon said phishing scams were discussed during the NJ League of Municipalities Conference held in November in Atlantic City to alert municipal officials about the practice and how to protect the public.
“I heard it’s happening in Florida and all over,” he said.
Lt. Joe Scullion of the Margate Police Department said he is not aware of any open local investigations at this time, but that the FBI is aware and has a division that investigate cyber attacks, which have become a growing global concern.
“If anyone falls victim and are out money, we would do an investigation,” Scullion said. “This was a general warning so people can safeguard themselves.”
He said the scammers are not new and come and go over the years.
“They act up for awhile and then it quiets down, and then it starts up again,” he said.
Scullion said applicants should be wary of any mail or emails they receive that they suspect are fraudulent. Look for misspellings, or unusual fonts, and if anyone has any suspicions, they should call the Planning and Zoning Department directly to find out if the request is legitimate.
“You want to be transparent, but it kind of bites you in the butt,” Scullion said.
The flyer states the city would never request a wire transfer.
People should check where the email is coming from. If using Apple Mail, hover over the sender’s name and it will show the actual email address. The Outlook email platform clearly displays the sender’s name and email address. Look for slight misspellings of email addresses.
An email coming from anyone in the Margate Planning and Zoning Department will end with @margate-nj.com. And, never click on links, Scullion said.
Similar warnings advising the public to be vigilant were posted in Northfield recently.
The City of Northfield became aware of the mail scam targeting individuals and businesses, where the sender falsely claims to represent the City of Northfield. The scam involves fraudulent invoices being emailed to applicants who have applied for relief to the city’s combined Planning and Zoning Board.
"We are proactively advising our residents to be vigilant," the city posted on its website. Scammers are creating invoices that appear to come from the municipality and may even include city logos or the names of actual employees.
In Margate’s case, the email showed it came from Palma Shiles of the “Planning and Zoning Commission.” Margate does not have a Planning and Zoning Commission; it has a Planning and Zoning Department and a Planning Board.
Because the invoices contain accurate information gleaned from publicly posted applications, including the names of architects and attorneys representing the applicant, they seem legitimate.
“The Margate City Planning Department will never ask for a wire transfer,” the flyer states.
When in doubt, call Planning Board Administrator Palma Shiles at 609-822-2605, ext. 117, or Zoning Officer Roger McLarnon at 609-822-5438.
Suspected scams can also be reported to the Margate City Police Department’s non-emergency number at 609-822-1151.
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