Buchanan County Public Schools is working with federal, state and local authorities after a cyber scam targeted a payment intended for construction of the new Southern Gap High School.
According to a statement released by the school division, a payment being transferred from Buchanan County to the contractor constructing the new high school was the target of a fraudulent payment diversion scheme.
School officials said they acted immediately after discovering the incident, contacting local law enforcement, which then notified federal authorities. The division also worked with the financial institutions involved to help stop the fraudulent transaction and recover the funds.
In addition, the school division retained outside legal counsel with experience in cybersecurity incidents and hired cybersecurity experts to assist with the investigation and response. Officials also notified the U.S. Army Corps of Engineers, which has been involved with the construction of the new high school.
Multiple investigations are now underway, including one being conducted by the Federal Bureau of Investigation.
According to the school division, the quick response significantly limited the impact of the scheme.
“Through this swift response, the scheme was largely thwarted, and most of the targeted funds are being returned,” the statement said.
School officials did not disclose the amount of money involved or explain how the payment was redirected. They also did not indicate whether any money remains unrecovered, citing the ongoing investigation.
The division said it will continue working with law enforcement agencies as investigators determine how the attempted fraud occurred.
Officials noted that payment diversion scams have become increasingly common in recent years, particularly on large construction projects and business transactions. According to the FBI, these types of cybercrimes account for more than $3 billion in losses annually and affect roughly 25,000 victims each year.
Although the incident remains under investigation, school officials said they are grateful the majority of the money was recovered before it could be permanently lost.
“While the prevalence of these cyber incidents on a global scale is concerning, Buchanan County is fortunate to have avoided a more damaging outcome through a quick, deliberate response to the incident,” the school division said. “We look forward to continued progress on the new high school.”
Construction of Southern Gap High School continues as scheduled and is on pace to open on time. Officials said they remain committed to completing the project while supporting the ongoing investigation.
