After cyber fraud alert, LaSalle trustees authorize new transfer procedure and an additional signer

County investment staff briefed the LaSalle County Insurance Trust about a recent increase in attempted cyber fraud and recommended tighter procedures for moving trust funds. Presenters described cases in which malicious actors successfully mimicked client communications and said the recommended safeguard is to have the municipality itself initiate online cash moves from its account rather than direct the manager to push funds to a third party.

Trust staff described an operational plan: the trust or authorized county staff would instruct the investment manager to liquidate funds to cash, then an authorized county official (designated in the manager's portal) would log in and move the cash to the county's bank account. Trustees were told adding an internally authorized signer reduces the risk that an outside actor can impersonate the county and redirect funds.

The committee voted to approve the new cash-movement protocol and to list Julie Harris as an additional authorized signer who can initiate transfers from the county's portal when requisitions are approved. Because several trustees raised segregation-of-duty and documentation concerns, the committee later approved a motion amending the authorization to require involvement by the treasurer's office (or the treasurer designee) as an additional safeguard. The amendment passed on a roll-call vote.

Trustees asked staff to codify the process in written policy and to provide a clear paper trail and verbal-confirmation steps (for example, calling a treasurer designee) before funds are moved. The committee indicated the new process can be revised after a formal written policy is prepared and reviewed by the auditor and treasurer'office.