Investigation, recovery effort results in return of almost $700K
Suspect based in Nigeria
By Toni Baldazo, City of Pittsburg Community Engagement Officer
The City of Pittsburg is reporting a February 2026 phishing incident that resulted in a single unauthorized ACH payment totaling $913,839.81 being sent to a fraudulent account spoofing as a known City vendor. The incident occurred on February 12, 2026, and was identified by City staff on February 17, 2026, prompting immediate action. The City informed the Pittsburg Police Department who expanded the response team to include the County of Contra Costa and Federal Bureau of Investigations.
According to the Federal Trade Commission, phishing is when scammers use email or text messages to try to trick people into giving them personal and financial information to steal passwords, account numbers or Social Security numbers. They are then able access to email, bank and other accounts.
“The instant this incident was identified as fraudulent by City staff, the City’s Police Department acted quickly and immediately froze the account to which the funds were electronically wired,” said Pittsburg Police Chief Phil Galer. “Given the nature of this cybercrime, we contacted related agencies and the FBI to tap all available resources.”
The swift action of the Pittsburg Police Department resulted in the initial recovery of $696,241.00 dollars. The City is pursuing insurance coverage payment for the remaining $217,598.00, through its cyber and crime insurance policies. The investigation involved several sensitive and intricate components, requiring a number of complex investigative steps over a period of time, to maximize the recovery of funds and to seek identification of the perpetrators. It included 18 search warrants involving 116 accounts across major technology companies, financial institutions and telecommunications providers. Evidence identified the primary overseas suspect responsible for compromising the City’s email system is based in Nigeria with at least two criminally affiliated U.S.-based suspects. The investigation remains active as the FBI and the U.S. Attorney’s Office have accepted the case for continued investigation domestically and overseas.
“The Pittsburg Police Department remains committed to pursuing every available lead and ensuring the highest level of protection for our city operations,” Chief Galer added.
While the investigation is ongoing with the FBI and related agency partners, it has now reached a point where public disclosure will not compromise the investigation.
In response to the incident, the City immediately implemented new processes to further strengthen internal controls related to financial processes. This includes improvements to digital and human procedures including ACH payment verification processes, and controls within financial workflows, as well as modifications to IT staffing. These enhanced measures reflect significant internal analysis and reinforce the City’s commitment to strong cybersecurity practices that protect public resources.
“Sadly, Pittsburg has joined a long list of public agencies successfully targeted by international crime rings with cyber-based financial crimes. This crime is both upsetting and a hard lesson for how we can improve our security. I share the community’s disappointment that criminals were able to exploit our systems,” said Mayor Dionne Adams. “While this was a difficult moment, the City acted immediately to recover as much of the stolen funds as possible and tightened cybersecurity measures and procedures. I thank Pittsburg PD for their swift action and the law enforcement agency partners that helped us throughout this process.”
The city encourages residents and partners to remain vigilant about cybersecurity threats. City leadership will continue to evolve its internal systems in response to the expanding threats of cybercrime attacks to safeguard public funds and operations.
Allen D. Payton contributed to this report.
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