Newport reports $330,000 of city funds lost after scammers impersonate the town’s insurance

The town of Newport has been scammed out of $330,000, officials announced last week in a news release.

Newport, the county seat of Pend Oreille County, lost the city funds after scammers emailed the town posing as the Association of Washington Cities, its insurer.

In a news release issued last Thursday, it states there is no evidence that residents’ personal information was compromised. The incident appears to be limited to the town’s financial transactions, it states.

Newport Mayor Keith Campbell said the city became aware of the incident on Feb. 11 and immediately notified local law enforcement authorities and the FBI. He said it remains under active investigation.

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

Newport has 2,155 residents, according to last year’s official state estimate.

Rural towns have been victims of scams in recent years. In December 2024, Clark Fork, a small town in North Idaho, was scammed out of half a million dollars by a man posing as its construction contractor.

While the Idaho town was able to recoup $192,000 last year, it continues to recover.

“We’re still working through that process now. The investigation could take some time,” Campbell said.