Vermont Business Magazine Chittenden Solid Waste District (CSWD) is alerting the public to a highly sophisticated phishing scam that occurred during construction of its new Materials Recycling Facility (MRF).
Scammers posing as representatives of CSWD’s construction partner contacted CSWD’s finance team requesting that we update our system with their new payment terms. The fraudulent emails were particularly convincing, using email addresses nearly identical to those of the construction company, purporting to be from a known member of the finance team, and included that person’s photo.
Correspondence occurred with the fraudster, ultimately leading CSWD to send two Automated Clearing House (ACH) payments totaling $3 million to cover both a past-due amount and a current invoice. CSWD was made aware by our construction partner that payments were still outstanding, and through discussions with the team confirmed that the previous requests were fraudulent. CSWD immediately attempted to recover the funds, but unfortunately the banks involved were unable to do so.
“This was a highly sophisticated scam that misled even experienced and trained staff,” said Sarah Reeves, Executive Director of CSWD. “We are taking this very seriously, working with our partners and the appropriate local, state, and federal authorities, and strengthening internal safeguards to prevent this from happening in the future. We are also working closely with our construction partner to ensure they receive their scheduled payments and are thankful for their support and collaboration throughout this process.”
CSWD is conducting a thorough review of the incident and evaluating internal procedures to ensure continued transparency, accountability, and responsible stewardship of public resources. The District will provide updates as additional information becomes available.
CSWD services and the new MRF construction will continue without interruption with anticipated completion of the project in January 2027.
About CSWD:
The Chittenden Solid Waste District (CSWD) is a municipality created by our member Towns and Cities to manage the solid waste generated within Chittenden County in an environmentally sound, efficient, effective and economical manner.
3.11.1016. South Burlington, Vt. - Chittenden Solid Waste District
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