‘Giving From the Heart’ at MIYFS Foundation fundraising breakfast
Mercer Island Reporter, Friday, February 20, 2026
Resolved Fraud Event – Details from MIYFS Foundation
Constituent Email Sent 3/23/2026 from MIYFS Board President
I am writing to share an important update with you directly and transparently.
On January 29, 2026, Mercer Island Youth and Family Services Foundation (“Foundation”) learned that it had been the victim of a cyber fraud incident involving the diversion of a scheduled $145,000 grant payment to the City of Mercer Island.
Foundation staff and executive committee took immediate action and worked with our financial partners and the Mercer Island Police Department (“MIPD”) to pursue recovery. As of Monday, March 9, the Foundation has recovered $142,984.74 of the funds.
MIPD’s investigation remains active. We are sharing this information with our supporters as soon as we can do so responsibly and without interfering with that work.
At this time, there is no evidence that supporter information was compromised, the Foundation’s financial systems are secure, and this incident has not affected Foundation-supported YFS programs and services.
We have already taken initial steps to strengthen our safeguards, including additional verification and approval procedures around payments and payment-related changes. We are also working with the board, our financial partners, and outside cybersecurity experts on further measures to strengthen our controls in the weeks ahead.
Unfortunately, incidents like this are increasingly common across organizations of many types and sizes, including recently here on Mercer Island. In this case, the attack began when a trusted supporter’s email account was unknowingly compromised and used to send a phishing message that allowed access to our email system.
We take our stewardship responsibilities and your trust extremely seriously. For transparency, we are also posting a short public notice and FAQ so that our community can hear directly from us and have access to the same facts.
Thank you for your continued support of Mercer Island Youth and Family Services Foundation and the mission we share.
Sincerely,
Cindy Goetzmann
President, MIYFS Foundation Board
FAQ
What happened?
On January 29, 2026, the Foundation learned it had been the victim of a cyber fraud incident involving the diversion of a scheduled $145,000 grant payment to the City of Mercer Island.
How much money was involved?
The diverted payment was $145,000. As of March 9, the Foundation recovered $142,984.74.
Was supporter information compromised?
At this time, there is no evidence that supporter information was compromised. Furthermore, the Foundation does not save any supporter credit card or banking information in any of its systems. All donations are processed through secure third-party payment processors.
Did this incident affect Foundation funded programs or services?
No. YFS programs and services were not impacted.
Is law enforcement involved?
Yes. MIPD responded promptly to the report of the cyber fraud incident and is actively investigating the matter.
Why are you sharing this now?
We are informing supporters as soon as we can do so responsibly. Recovery efforts are underway, the investigation is ongoing, and we now have confirmed information to share an accurate update.
What has the Foundation done in response?
The Foundation staff and executive committee took immediate action with financial partners and law enforcement to pursue recovery. It has also implemented additional verification and approval procedures around payments and is working on further safeguards with the board and outside experts.
Why not wait until all safeguards are finalized?
We believe it is important to communicate promptly and transparently while continuing to strengthen additional safeguards in parallel.
Is this unusual?
No. This type of fraud is increasingly common across organizations, including nonprofits and public agencies.
Why make this public?
In a close-knit community, information can circulate quickly. We believe it is important for supporters and the community to hear directly from us with complete and accurate information. It is also important for other local, small non-profits and businesses to be alerted that these types of fraud schemes are prevalent.
What happens next?
We will continue to cooperate with law enforcement and implement additional safeguards to further strengthen our financial controls.