Tulsa Reports Loss Of Nearly $200,000 From Email Hacking Scheme, FBI Investigating

The City of Tulsa has contacted the FBI to investigate a loss of $191,972 in an apparent email hacking scheme.

The loss happened during the transfer of tax funds collected from hotels and used to promote tourism, according to the City.

Taxpayers will have to pay the bill twice, with the legitimate payment to be collected from property taxes.

City of Tulsa spokesman Carson Colvin said the FBI was investigating.

“While we have not received any updates on the status of their investigation, we can confirm that the vendor email used to provide payment in this instance was hacked. The City has since strengthened its vendor change process as a result,” Colvin said.

He did not elaborate further.

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City records explaining the second payment state that on April 4, 2024, the City “inadvertently deposited the sum of $191,972.52 into a counterfeit bank account, rather than the correct bank account for Tulsa Tourism District No. 1.

The City was unable to recover the funds, however, the City is contractually obligated to pay the sum to TID.

The City tapped the “sinking fund” that comes from property taxes through a lawsuit and settlement agreement that will be finalized with City Council approval Wednesday evening.

The public discussion was brief at the Tulsa City Council meeting, with staff reminding Councilors any details on the investigation would have to be discussed in an executive session.

Council Administrator Jack Blair told Councilors, "That payment was misdirected because of a fraudulent EFT transfer instruction. The vendor email used to provide the payment instruction was hacked. And I can report that the FBI is investigating, and the City is strengthening its vendor change processes as a result."

A representative of the City Finance Department told councilors the money would paid immediately into the tourism fund and replaced in the source account with collections over three years from property taxes.