[US] $45K payroll cyberscam forces closure of upscale NYC restaurant

A restaurant in Greenwich Village, New York, has closed down following a cyberscam which stole $45,000 from its payroll, leaving the business unable to continue operating, VNY reports. 

Gotham Restaurant -  previously known as Gotham Bar and Grill - is celebrating its 40th year in business. According to reporting from Eater NY, Gotham’s owners announced that it will be closed until late August for a “summer pause”.

Co-owners Bret and Cassandra Csencsitz reportedly said that the decision to temporarily close was made after they were tricked into sending payroll funds to a “nefarious actor.”

The scam began on May 10 when someone pretending to work for the company Gotham uses to administer payroll emailed Mr Csencsitz and an HR staffer to tell them the firm was changing banking information because of “internal issues.” They didn’t realise the email was fake until it was too late.

“We fell victim to someone who was able to inject themselves into an ongoing dialogue between ourselves and a payroll company,” Mr Csencsitz told the NY Post.

Mr Csencsitz contacted the bank after the phishing incident but the financial institute has yet to recover the money. He added that Gotham doesn’t have a cyber insurance policy, which costs $5,000 annually.

The owners have reportedly filed a report with the FBI and are warning other businesses to take out cyber insurance, arguing that banks should do more to protect clients’ money.

“Please know that this was a difficult decision and it was not made lightly. Business levels and a recent cyber-deception incident that resulted in a large loss made it necessary for us to pause operations to consider our options,” Mr Csencsitz told workers in a message to announce the temporary closure.

Mr Csencsitz said that he intends the business to make a full recovery, “We fully plan to reopen. We have capital committed, we haven’t received it yet but we will. We have very strong commitments and we’re gonna modify some things and be back with a new venue and a slightly modified dining room”.

Source: VNY

(Link and quotes via original reporting)

A restaurant in Greenwich Village, New York, has closed down following a cyberscam which stole $45,000 from its payroll, leaving the business unable to continue operating, VNY reports. 

Gotham Restaurant -  previously known as Gotham Bar and Grill - is celebrating its 40th year in business. According to reporting from Eater NY, Gotham’s owners announced that it will be closed until late August for a “summer pause”.

Co-owners Bret and Cassandra Csencsitz reportedly said that the decision to temporarily close was made after they were tricked into sending payroll funds to a “nefarious actor.”

The scam began on May 10 when someone pretending to work for the company Gotham uses to administer payroll emailed Mr Csencsitz and an HR staffer to tell them the firm was changing banking information because of “internal issues.” They didn’t realise the email was fake until it was too late.

“We fell victim to someone who was able to inject themselves into an ongoing dialogue between ourselves and a payroll company,” Mr Csencsitz told the NY Post.

Mr Csencsitz contacted the bank after the phishing incident but the financial institute has yet to recover the money. He added that Gotham doesn’t have a cyber insurance policy, which costs $5,000 annually.

The owners have reportedly filed a report with the FBI and are warning other businesses to take out cyber insurance, arguing that banks should do more to protect clients’ money.

“Please know that this was a difficult decision and it was not made lightly. Business levels and a recent cyber-deception incident that resulted in a large loss made it necessary for us to pause operations to consider our options,” Mr Csencsitz told workers in a message to announce the temporary closure.

Mr Csencsitz said that he intends the business to make a full recovery, “We fully plan to reopen. We have capital committed, we haven’t received it yet but we will. We have very strong commitments and we’re gonna modify some things and be back with a new venue and a slightly modified dining room”.

Source: VNY

(Link and quotes via original reporting)