Cyber criminals targeted city of Oakdale account

OAKDALE — High-tech criminals used a computer virus to steal $118,000 from a city bank account, officials said Wednesday.

City officials learned about the theft Sept. 6, but federal authorities asked them not to go public until now to safeguard the investigation.

Interim City Manager Greg Wellman said Oakdale's insurance carrier has said it will reimburse the city for its loss, less its $2,500 deductible.

The money was in an account at Oak Valley Community Bank. Wellman said bank officials indicated the virus originated in a city computer. He said city officials also believe this to be the case.

"They are confident that their systems are tight and everything is well protected," Wellman said about the bank.

City officials said Oak Valley and a federal high-tech crime unit both discovered the theft Sept. 6 and notified the city the same day.

Oakdale police Detective Brian Shimmel said agencies with the crime unit are investigating and have asked the city not to release their names. He said federal authorities told the city there are no indications that city employees were involved in the theft.

Shimmel said the city took the computer with the virus offline, has checked its other computers and taken other measures to protect itself. Officials said there have been no other computer problems since.

The city will hire a consultant for a more in-depth review of the city's computers. Oakdale also is reminding employees about safe computer use.

Shimmel said the virus accessed multiple city accounts and transferred money into the account in which the theft took place.

"It's the same story we hear from a lot of institutions," Oak Valley President Chris Courtney said about the computer fraud. "It's about safekeeping the information on your computers, scanning for viruses and having a state-of-the art security system."

The city will hold a news conference today at 3 p.m. regarding the theft in the council chamber, 277 N. Second Ave.

Bee staff writer Kevin Valine can be reached at kvaline@modbee.com or (209) 578-2316.