OFFICE OF INSPECTOR GENERAL

Department of Homeland Security

Washington, DC 20528 / www.oig.dhs.gov

FOR IMMEDIATE For Information Contact:

RELEASE July 16, 2019 Public Affairs (202) 981-6000

Fraud Alert:

Transnational Fraud Ring Targets U.S. Government 

Procurement Offices and Vendors

In July 2018, the U.S. Department of Homeland Security (DHS) Office of 

Inspector General (OIG) discovered that members of a transnational fraud ring 

based in Atlanta, Georgia, had impersonated a DHS procurement official to 

obtain computer equipment from private vendors. Further investigation into 

the ongoing fraud scheme revealed that the subjects were also stealing 

electronic equipment intended for other Federal agencies, including the 

Departments of Commerce, Defense, Housing and Urban Development, Justice, 

Labor, and Transportation; the Federal Deposit Insurance Corporation; the 

Securities and Exchange Commission; and the Railway Retirement Board. 

Some of the purchase orders identified were for hundreds of thousands of 

dollars each. 

Fraud Scheme

The fraudsters identify Federal government solicitations for computer 

equipment—frequently laptops, hard drives, and smart phones. They fax or 

email fraudulent requests for quotations (RFQ) to government vendors 

nationwide. 

The RFQs use the name of a legitimate government procurement official but 

include a phone or fax number associated with the fraudsters. They also use 

email addresses that spoof U.S. government agencies, with domain names such 

as “rrb-gov.us.” Alternatively, the email’s From header displays a legitimate 

government email address, but the Reply-To header is a slightly different, nongovernment email address. In some cases, the fraudsters avoid email and 

insist on communicating by fax. 

The fraudsters respond to any quotations received with fraudulent purchase 

orders that include delivery addresses chosen by the fraudsters—frequently 

abandoned commercial properties.

When the fraudsters receive the shipment, the ringleader decides whether to 

sell the equipment in the United States or ship it to Nigeria for resale. 
OFFICE OF INSPECTOR GENERAL

Department of Homeland Security

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The equipment enters the black market, and the government vendor never 

receives payment for the goods. 

Prevention Measures

If you receive an RFQ for electronic equipment that appears to come from the 

U.S. Government, take the following precautions: 

• Independently obtain the phone number for the listed procurement 

official and call them to confirm the RFQ is legitimate before responding 

to any RFQs received by fax;

• Respond to RFQs received by email only when the sender’s domain and 

the Reply To header end in “.gov”; 

• Beware of any purported procurement officials who refuse to 

communicate by email; 

• Beware of typographical errors, unusual language, and distorted U.S. 

government seals and other graphics; and 

• Clearly indicate on the outside of all boxes that the contents are the 

property of the United States Government (in at least one case, a buyer 

refused to purchase the stolen goods from the fraudster when he saw 

“U.S. Department of Homeland Security” on the boxes). 

Anyone who believes they may have been a victim of this fraud scheme is urged 

to call the DHS OIG Hotline (1-800-323-8603) or file a complaint online via the 

DHS OIG website, www.oig.dhs.gov.

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For more information, visit our website, www.oig.dhs.gov