Developers, property owners, businesses, institutions and other parties involved in zoning, land development, permitting and other municipal approval processes should remain vigilant against a sophisticated scam targeting applicants seeking local government approvals.
Recent reports indicate that fraudsters are continuing to impersonate municipal officials and representatives in an effort to obtain payments from applicants. In these scams, recipients receive realistic-looking invoices or payment requests purportedly related to zoning reviews, permit applications, planning commission matters or other municipal processes. The communications often include detailed fee breakdowns, official-looking documents bearing unauthorized or impersonated government seals, logos, letterhead, or watermarks, and instructions regarding payment.
While these scams are not new, the tactics continue to evolve. Fraudulent communications may contain convincing details and references to ongoing projects or applications, making them difficult to distinguish from legitimate correspondence. In some instances, recipients are instructed to communicate exclusively by email and to submit payment through wire transfers or other nonstandard payment methods.
According to Don Geiter, chair of Barley Snyder’s Cybersecurity Service Team, “Cybercriminals are moving beyond generic phishing emails and now targeting specific projects with carefully researched information. Because development applications often generate public records and project-related disclosures, fraudsters can readily identify key project details. Combined with AI-powered tools that help automate research and produce convincing communications, these schemes can be very difficult to distinguish from legitimate municipal correspondence. Slowing down and committing to independent verification of payment instructions remain the most effective defenses against this type of fraud.”
Red Flags to Watch For
Applicants should exercise caution if they receive:
- Unexpected invoices or requests for payment related to a pending application, permit or approval process.
- Instructions to pay by an unusual or temporary payment method.
- Requests to communicate exclusively by email.
- Payment demands that differ from a municipality’s established procedures.
- Messages that create a sense of urgency or pressure immediate payment.
Protecting Against Fraudulent Payment Requests
Before submitting any payment related to a zoning, land development, permitting or other municipal matter, applicants should:
- Verify payment requests directly with the municipality using a known phone number or contact information obtained from its official website.
- Confirm the amount due and the municipality’s accepted payment procedures.
- Review the sender’s email address carefully for inconsistencies or suspicious domains.
- Ensure employees involved in accounting, project management and development approvals are trained to recognize phishing and other social engineering scams.
As these scams become increasingly sophisticated, a simple verification can help prevent significant financial loss. If you believe you have been targeted by this scam, do not respond to the communication, click on any links or remit payment. Instead, independently verify the request by contacting the relevant municipality using publicly available contact information.
For assistance evaluating a suspicious communication or verifying a payment request, please contact Thomas T. Platts or any attorney in Barley Snyder’s Real Estate Practice Group.
