FBI Investigating $3.7 Million Cyber Scam of Kentucky School District
Scott County Public Schools officials on Wednesday announced that the district is the victim of a $3.7 million cyber scam that is under investigation by the FBI.
Superintendent Kevin Hub provided the Herald-Leader with a statement that said on Wednesday morning the district received notification from a vendor that they did not receive payment of a recent invoice.
“Upon further investigation, we determined a fraudulent email led to the creation of an automated payment account. Within minutes of receiving this information, “the statement said, Hub spoke with the Kentucky State Police and the FBI office in Lexington.
FBI special agents and forensic accountants are conducting a thorough investigation.
“Today, they are focusing their efforts on the recovery of these funds because time is of the essence. We hope for a full recovery,“ the release said.
Officials said there has been no compromise to either the financial data system or the student data management system. This issue is narrowly defined to a specific vendor payment process, the release said.
As a precaution, the district finance and accounting team changed all district online passwords.
“We are thankful that the Scott County Board of Education had the leadership and vision to add a cyber fraud policy to our insurance portfolio. For the sake of transparency, we thought it important to inform the community of this situation directly and with immediacy,” the release said.