Finding for Recovery of $2,288.40 Against Village of Holland Clerk-Treasurer Repaid Under Audit Following Phishing Scam

Press Release •Ohio Auditor of State

COLUMBUS - A finding for recovery of $2,288.40 was issued Tuesday against a clerk-treasurer for the Village of Holland in Lucas County after another employee changed banking deposit information in a phishing scam.

The total was repaid under the audit of the village's finances from Jan. 1, 2023, through Dec. 31, 2024.

The full report is available online at ohioauditor.gov/auditsearch/search.aspx.

Auditors determined that the village's clerk-treasurer did not adopt a formal policy requiring verification for requests to change employees' banking account information. As a result, an administrative assistant for the village, when the clerk-treasurer was on leave, changed an employee's bank routing information in an email phishing attack, resulting in $2,288.40 being deposited into a fraudulent account.

The village's clerk-treasurer was ultimately liable for the loss. Under audit, the village received a check for $2,037.63 from its insurance company, $250 from the clerk-treasurer, and a 77-cent credit from its bank.

The Auditor of State's Office issued a bulletin in 2024 setting clear standards and expectations for public offices in handling payment redirect requests. Tuesday's finding for recovery was the second issued by state auditors against a public employee for failures to following the bulletin's guidance.

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The Auditor of State's Office, one of five independently elected statewide offices in Ohio, is responsible for auditing more than 5,900 state and local government agencies. Under the direction of Auditor Keith Faber, the office also provides financial services to local governments, investigates and prevents fraud in public agencies, and promotes transparency in government.

Public Affairs Contact: Marc Kovac [email protected]