By DIANTÉ MARIGNY
editor@portisabelsouthpadre.
Federal authorities are investigating a cyberattack involving the South Padre Island Economic Development Corporation (EDC) after funds were transferred to a fraudulent account, raising questions about the amount of money involved and whether it can be recovered.
South Padre Island Mayor Patrick McNulty publicly acknowledged the incident during the Oct. 7 City Council meeting, reading a prepared statement confirming that an unauthorized transfer had occurred.
“Federal agents are working closely with the EDC to conduct a thorough investigation into the attack and track the fraudulent transfer,” McNulty said.
The city has not disclosed how much money was transferred, when the incident occurred or whether any of the funds have been recovered.
The EDC is funded through a half-percent local sales tax dedicated to economic development efforts on South Padre Island.
“The EDC receives a half percent of local sales tax revenue, which is maintained within the city coffers,” McNulty said.
According to the city’s statement, the incident was isolated to the EDC, which operates an email system separate from the city’s municipal system.
City officials also reported reviewing administrative security protocols following the attack.
The incident has prompted concern about the security of public funds and the safeguards used to protect financial transactions.
City Commissioner Aarin Hartwell told KRGV-TV that she hopes those responsible are apprehended but could not discuss details that might interfere with the federal investigation.
EDC board member Gayle Hood also declined to comment when contacted by the television station.
The EDC held a special meeting Friday, Oct. 9, that included a closed-session agenda item concerning cybersecurity measures and the protection of critical infrastructure.
Details of the board’s closed-session discussion have not been publicly released.
Homeland Security Investigations is reportedly working with local officials as the investigation continues.
The EDC supports economic development initiatives intended to encourage business growth, investment and employment opportunities on South Padre Island.
It remains unclear whether the unauthorized transfer will affect any ongoing or planned EDC projects.
The Port Isabel-South Padre Press contacted city officials seeking information about the amount transferred, when the incident was discovered, potential recovery of funds and measures taken to prevent similar incidents. No response had been received by press time.