Fraudsters posing as police officers swindle Prague-area company out of 46 million koruna

The municipal organization "Hradec Králové Real Estate Management" has lost approximately 46 million koruna in a fraud scheme: last week, an employee of the company transferred funds to accounts controlled by scammers who posed as police officers and staff of the Czech National Bank. The transfer was made without the knowledge of the organization's management, colleagues, or the city administration, the Hradec Králové city hall reported on Monday.

According to the city hall, "Hradec Králové Real Estate Management" fell victim to a fraudulent financial attack. Police are already investigating the case, with cooperation from both the organization itself and city authorities.

According to the management's director, Jaroslava Bernhardová, the incident stems from a personal lapse by the employee responsible for handling the funds. Under psychological pressure from the scammers, he bypassed the control mechanisms and security procedures in place for financial transactions, the director noted.

She said the incident has had no impact on the organization's regular operations or the services it provides. The financial loss poses no direct threat to the company's activities, its cash flow, fulfillment of financial obligations, or payment of employee salaries, Bernhardová emphasized. The management company is responsible, among other things, for city apartments, houses and non-residential premises, and also operates a swimming pool, an aquapark, and a summer bathing complex.

The city hall said that internal control procedures for the city and municipal organizations undergo regular audits, which reportedly confirm they are properly and reliably configured. Nevertheless, authorities intend to step up training for employees on recognizing fraudulent calls and other scams aimed at extracting money, the city hall added.

For reference: last year, "Hradec Králové Real Estate Management" reported revenue of 224 million koruna, of which 141 million came from a city subsidy. The organization employed an average of 118 people.

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Around Prague, based on reporting by seznamzpravy.cz