It has been a little over a year since Eagle Mountain City was on the losing end of a $1.13 million dollar cyber phishing attack. The only information you can find about the attack on the Eagle Mountain City website is in the Rumor Stop. The item has fallen off the news feed on the Eagle Mountain City website.
The Rumor Stop page on the City website states the following:
Rumor: Has the City recovered the $1.13 million that was lost to fraud? Did the insurance pay the whole amount?
Fact: Eagle Mountain City is working with both the FBI and the insurance company to resolve this matter, but at this point no reimbursements have been made. The City will send out an update to residents as soon as one is available.
The fact that it seems to have become an item of the past and the budget shows that the city has written the amount off, made me think that maybe the insurance claim was denied.
Special and Extrordinary Loss – On Aug. 31, 2022, Eagle Mountain City determined that it was the victim of an organized cybercrime, resulting in the loss of nearly $1.13 million. This crime was orchestrated through an email impersonation wherein the individual(s) responsible were able to portray themselves as a representative of a vendor working closely with the City on a major infrastructure project. Eagle Mountain City took immediate action, contacting the Federal Bureau of Investigation (FBI), Utah County Sheriff’s Office and the vendor within minutes of learning Interfund Transactions – There are no interfund of the Incident.
2024 Fiscal Year Full Budget
So I contacted the company that Eagle Mountain City purchases their insurance through to see if the claim had been closed out. The City pays Utah Local Governments Trust to handle insurance claims of this type for them as well as the insurance policies for the city. I contacted the claims person with the ULCT and received an email from their general counsel asking me to do a formal GRAMA request for the information. After doing a formal GRAMA request, this is the information that was returned to me by their legal counsel. Their legal counsel was helpful and did ask several follow-up questions to make sure that he understood my request.
Email dated: 10/6/2023 – 11:55 AM
Mike,
The claim has not been closed out on our end. The attached letter we sent to Eagle Mountain should help you with determination of coverage on this claim.
It looks like there is still a chance that the City will get paid the $1.13 million by the insurance company, but after a year of waiting, who knows if it will actually happen? It would be nice if the City would update its website and let the resident taxpayers know if their money is going to be returned. I am guessing that we will be seeing a press release from the city shortly.
Mike Kieffer – Editor-in-Chief, Cedar Valley Sentinel
Mike Kieffer is a dynamic leader and community advocate based in Eagle Mountain, Utah. He serves as the Editor-in-Chief of the Cedar Valley Sentinel, a local publication dedicated to informing, inspiring, and elevating the Cedar Valley community through honest and accurate journalism. With a passion for fostering connections, Kieffer has made it his mission to highlight local businesses, provide reliable news, and support community development.
Beyond his editorial role, Kieffer is the owner of Lake Mountain Media, LLC, a company specializing in media and communications, and the co-owner of Quail Run Farms, which focuses on sustainable farming and community engagement. He also actively contributes to the local economy and culture as a member of the Eagle Mountain Chamber of Commerce.
Kieffer’s dedication extends to preserving and promoting the history and heritage of the Cedar Valley area. He often participates in community-centered events and media, including podcasts that explore the unique aspects of life in the region. Through his varied endeavors, he remains a steadfast advocate for the growth and enrichment of the local community.