Local and federal investigators said $400,000 has been stolen electronically from the city of Burlington.
In addition to the theft, the security breach put the personal information of city workers at risk.
The Skagit Valley Herald reports that someone took the money electronically from a city government bank account.
It was then transferred to a number of business and personal accounts across the country over a two-day period.
The bank account has been frozen and city employees with direct deposit have been notified that their personal data may have been compromised.