Online scam sees Harlech Community Council lose £9,000

The online scam was discussed by the council at Harlech Old Library

A scammer has conned a community council out of £9,000, which is just under 10% of its annual budget.

Harlech Community Council in Gwynedd said it gave the money as an "advanced payment" to a man named Oluwafeni Odunuga for "consultative work".

The council said it was told by HSBC that it had been the victim of an "authorised push payment" scam.

The council clerk said the matter "had been dealt with" and would "not be discussed further".

Details of the matter were recorded in the minutes for a council meeting held on 9 January, which were only published in May, according to the Local Democracy Reporting Service.

They state that Mr Odunuga claimed an advance payment was required before he could carry out his work.

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The treasurer stated that she reported the matter to HSBC's fraud department and the bank was "looking into this and contacting the fraudster's bank".

According to the HSBC website, an authorised push payment scam is the type "in which a criminal tricks people into transferring money to them".

It said: "It differs from other types of fraud, where criminals get access to accounts and steal money without the account holder's knowledge."

The Public Services Ombudsman for Wales said it had not received a complaint about the matter.

The council reported in March that it spent about £99,000 in 2022-23, almost £14,000 more than was earmarked in the budget.

The council's expenses, outlined in their expected spending for this year, include £2,200 for the clerk's wages, £2,000 for Christmas lights, £2,500 for footpath grass cutting and £400 for salt bins.

The council's clerk, Annwen Hughes, said: "This matter has been dealt with by the community council and will not be discussed further."

HSBC has been asked to comment.