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South Padre Island says EDC cyberattack sent money to fake account, federal investigation underway

South Padre Island says EDC cyberattack sent money to fake account, federal investigation underway
55 minutes 17 seconds ago Thursday, October 08 2026 Oct 8, 2026 October 08, 2026 8:27 PM October 08, 2026 in News - Local
Source: KRGV

South Padre Island, TX (KRGV) — Federal agents are investigating a cyberattack on the South Padre Island Economic Development Commission after money was sent to a fake account, according to the city.

SPI Mayor Patrick McNulty read a prepared statement during a Wednesday city commission meeting. He said the attack led to an unauthorized transfer of funds to a fraudulent account. 

“Federal agents are working closely with the EDC to conduct a thorough investigation into the attack and track the fraudulent transfer,” McNulty stated.

The city has not said how much money was sent.

“The EDC receives a half percent of local sales tax revenue, which is maintained within the city coffers,” McNulty said.

Channel 5 News spoke with SPI City Commissioner Aarin Hartwell off camera. She said she wants the person who stole from the city to get caught but cannot share details because it could hurt the federal investigation.

South Padre Island EDC board member Gayle Hood told Channel 5 News in a text she has no comments at this time.

Channel 5 News reached out to the EDC for more details of the unauthorized transfer. The EDC sent Channel 5 News the same statement McNulty read. In it, the EDC wrote that this was an isolated incident and that its email system is separate from the city.

The city says it reviewed its administrative security protocols after the cyberattack.

“This is just a reminder that everybody needs to be very careful when they use their phone or email,” McNulty said.

The EDC will hold an emergency special meeting Friday morning in city commission chambers.

Watch the video above for the full story.

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