Carolina Beach Hit by Two Cyberattacks, Losing Nearly $500,000 in Government Funds
Carolina Beach officials disclosed this week that the town fell victim to two cyberattacks in December 2025, resulting in the theft of $487,994.80 in public funds. The incidents prompted a joint investigation by the Carolina Beach Police Department and the FBI, which linked the attacks to an ongoing international probe in another state.
Details on the attack methods remain undisclosed, though a press conference scheduled for later today may provide further updates. The town is working with its IT provider, law enforcement, and cybersecurity experts to recover the stolen funds, though its cybersecurity insurance covers only $25,000 of the loss.
In response to the breaches, the town has implemented new security measures, including stricter password policies, enhanced staff training, and improved encryption protocols. These changes follow recommendations from a National Guard cybersecurity audit, conducted for the second consecutive year. Additionally, Carolina Beach permanently removed its public access terminal a town-owned laptop previously available for viewing internal emails and documents due to privacy and security concerns, though officials confirmed the terminal was unrelated to the cyberattacks.
The incidents follow a similar case in Pender County, where scammers impersonating a water authority vendor stole over $650,000 between September and December 2025. The county transferred funds to a fraudulent account after receiving a fake request to update banking details.
Carolina Beach Mural Project cybersecurity rating report: https://www.rankiteo.com/company/carolina-beach-mural-project
Pender County cybersecurity rating report: https://www.rankiteo.com/company/pendercounty
"id": "CARPEN1770839843",
"linkid": "carolina-beach-mural-project, pendercounty",
"type": "Cyber Attack",
"date": "2/2026",
"severity": "75",
"impact": "2",
"explanation": "Attack limited on finance or reputation"{'affected_entities': [{'industry': 'Public Sector',
'location': 'Carolina Beach, North Carolina, USA',
'name': 'Carolina Beach',
'type': 'Government'}],
'date_detected': '2025-12',
'description': 'Carolina Beach officials disclosed that the town fell victim '
'to two cyberattacks in December 2025, resulting in the theft '
'of $487,994.80 in public funds. The incidents are under joint '
'investigation by the Carolina Beach Police Department and the '
'FBI, linked to an ongoing international probe.',
'impact': {'financial_loss': '$487,994.80'},
'investigation_status': 'Ongoing',
'motivation': 'Financial Gain',
'post_incident_analysis': {'corrective_actions': 'Stricter password policies, '
'enhanced staff training, '
'improved encryption '
'protocols, removal of '
'public access terminal'},
'recommendations': 'Stricter password policies, enhanced staff training, '
'improved encryption protocols, removal of public access '
'terminals',
'references': [{'source': 'Carolina Beach Official Disclosure'}],
'response': {'law_enforcement_notified': 'Carolina Beach Police Department, '
'FBI',
'recovery_measures': 'Working to recover stolen funds',
'remediation_measures': 'Stricter password policies, enhanced '
'staff training, improved encryption '
'protocols',
'third_party_assistance': 'Cybersecurity experts, IT provider'},
'title': 'Carolina Beach Cyberattacks Resulting in Nearly $500,000 Loss',
'type': 'Financial Fraud'}