A finding for recovery of $2,288.40 was issued recently 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 January 1, 2023, through December 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. The finding for recovery was the second issued by state auditors against a public employee for failures to following the bulletin’s guidance.
