Surfside Beach provides update on $545K contractor payment fraud

Surfside Beach officials reported an update on a $545,000 contractor payment fraud case after discovering funds were fraudulently redirected earlier this year. The town hired Wildcat Construction to relocate underground utilities, and after completing the work, payment was due. On March 13, the town issued an ACH payment to Wildcat, but the company immediately noticed discrepancies, including an incorrect email address with an extra 'i' in 'Wildcat' and forged signatures on documents. Wildcat Construction confirmed it had never processed ACH payments before, only checks, and the email chain provided by the town raised red flags. The company stated the funds were sent to a spoofed account impersonating them. Investigators concluded the town’s IT system was not breached, but the contractor’s system or communications were compromised. The South Carolina Law Enforcement Division (SLED) and the Federal Bureau of Investigation (FBI) are leading the criminal investigation, focusing on tracking stolen funds and identifying responsible parties. Authorities described this as part of a nationwide scheme targeting municipalities and government agencies. Insurance investigators confirmed no unauthorized access to the town’s network occurred. Wildcat Construction remains unpaid and has not received communication from the town’s attorney regarding the outstanding funds. The investigation is ongoing, and officials have promised to release all legally permissible details once concluded. The town previously limited public information to protect the integrity of the preliminary probe.