Small Washington Town Loses $330K in Scam Targeting City Funds

Scammers impersonated the city's insurer to steal taxpayer money in Newport, Washington

Published on Mar. 5, 2026

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The town of Newport, Washington, has lost $330,000 after scammers emailed the city posing as the Association of Washington Cities, its insurer. Newport Mayor Keith Campbell said the city became aware of the incident on Feb. 11 and notified local law enforcement and the FBI, who are investigating the incident.

Why it matters

Smaller rural towns have become increasingly vulnerable to financial scams in recent years, with limited resources to recover lost funds. This incident highlights the need for improved cybersecurity measures and fraud detection for municipal governments to protect taxpayer money.

The details

According to a news release, there is no evidence that residents' personal information was compromised, and the incident appears to be limited to the town's financial transactions. Newport has a population of just 2,155 residents, making the loss of $330,000 a significant financial blow.

  • The city became aware of the incident on February 11, 2026.
  • The news release was issued on March 5, 2026.

The players

Keith Campbell

The mayor of Newport, Washington.

Association of Washington Cities

The insurer for the city of Newport, whose identity was impersonated by the scammers.

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What they’re saying

“The impact on taxpayer money is one of the things we are evaluating right now.”

— Keith Campbell, Mayor of Newport (Washington State Standard)

What’s next

The FBI and local law enforcement are continuing their investigation into the incident.

The takeaway

This scam highlights the vulnerability of small towns to financial fraud, underscoring the need for robust cybersecurity measures and fraud detection protocols to protect municipal funds and taxpayer money.