The Connecticut Port Authority lost over $16,500 in funds intended to pay a recruitment services vendor to a phishing scam, according to a recent notice sent to state auditors.
According to the December 16, 2025, notice, the Port Authority processed a $16,666 invoice payment intended for Flagship Management, LLC on February 28, 2025. The invoice was sent to the Port Authority from jack@flagshipmgt.com on February 3.
But on February 12 the Port Authority received an email from jack@flagshipmigt.com that “followed up on the initial email thread inquiring into payment and indicating that the vendor is updating its payment information.”
The Port Authority did not notice the single-letter change in the domain name and sent payment to the phishers. The mistake was not noticed until April 11, when Flagship Management reached out about payment.
According to the notice to auditors, the Port Authority’s Finance Director then reviewed the payment history. “It is only at this time that the varying domain accounts was observed.” the Port Authority’s summary of the incident states.
At that time, the Port Authority contacted their bank to try to recapture the funds, but they had already been withdrawn. The Port Authority also contacted its managed services provider for IT, who was able to identify the source of the breach.
The Port Authority was able to recoup $14,166 from their insurance company after an investigation was closed on May 23.
They also filed reports with the Old Saybrook Police Department and the Federal Bureau of Investigation but, according to the notice, have not received any updates.
According to the notice, the Port Authority also updated its polices for updating vendor information to include telephone calls and processing penny tests for all payments.
They’re also now using new cybersecurity measures, including data encryption and multi-factor authentication.
The Port Authority, which has overseen the redevelopment of the State Pier into an offshore wind hub, has been at the center of a number of controversies involving delays, increasing costs and contracting issues.
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