The parent of Webster Bank says it’s the victim of an elaborate embezzlement scheme that the Waterbury lender suggests may have exposed it to $11 million in losses.
In a terse statement issued late Tuesday, Webster Financial Corp. said its internal controls uncovered and halted the scam involving a subcontractor that provides bulk cash processing for one of the bank’s major vendors. The bank did not identify the vendor or the subcontractor.
Vowing to pursue all avenues to recover losses, Webster said that the subcontractor had made partial restitution. The subcontractor also has insurance coverage that exceeds the maximum potential exposure of $11 million, the bank said.
Webster said it is identified as a loss payee on the policy.
The bank insists no customer accounts were affected by the scam.
A Webster spokesman said Wednesday the bank won’t comment beyond the release.
