Auditor Finds Potential Security Breach in City Checking Accounts

Friday, April 03, 2015

City Auditor Lyndon Remias and his staff recently discovered a potential security breach in city checking accounts. Two city employees who are not with the City Treasurer’s Office had full online home banking access to all of the city’s Bank of America checking accounts, including one account with more than $50 million. Their access has since been rescinded.

 

At this time, there is no indication that any money was taken, but Remias and his staff have launched an investigation to review the accounts. That may take several weeks.

 

“This is highly disturbing,” Remias said. “Only authorized employees in the City Treasurer’s Office should have access to the city’s checking accounts, and even those employees should not have home banking access. Authorized users should have business banking access that includes several layers of security.”

 

The city is working with Bank of America to address the issue. Remias said operating procedures and internal controls for establishing city checking accounts need to be strengthened.

 

“The City Council and the City Treasurer’s Office are aware of the potential seriousness of this situation,” Mayor William D. Sessoms, Jr. said. “We trust that our city staff and the treasurer’s staff will thoroughly review the issue and take proper steps to ensure the security of our taxpayer funds.”

 

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