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The University of Northern Colorado paid more than $85,000 to a fake software company in late 2014, the Greeley Tribune reported.
The university contracted a company called Bossage Inc. to develop smartphone apps for online teaching, but it was not until 10 months later that the university realized it had been duped.
The company claimed to have done hundreds of hours of work, but progress on the project was minimal. Further inspection by the university revealed that the company was not incorporated. It had also lied about office locations and said that it had completed contracts with other universities, which was not true.
The university did not attempt to recoup its money, saying the cost of doing so would likely outweigh the benefit. UNC said it has since reviewed and improved its procurement policies.
