More than $4 million of a $4.6 million construction payment targeted in a cyber scam has been recovered by Buchanan County, school officials announced Aug. 18.
The county is still working to recover $546,020, according to the latest statement from Buchanan County Public Schools.
The money was intended for the contractor building the new Southern Gap High School when it became the target of a misdirected payment scheme in July. The fraudulent transaction attempted to divert the entire $4.6 million payment.
School officials said cooperation among the school division, Buchanan County Treasurer’s Office, law enforcement agencies and multiple financial institutions helped reverse the payments and recover most of the money.
“Through tireless work, diligence, and cooperation with law enforcement, the School System, the Treasurer’s Office, and multiple financial institutions, the misdirected payment scheme was largely thwarted,” the school division said. “While the entire $4.6 million payment was initially targeted, over $4 million in payments were reversed and have been recovered by the County.”
The Aug. 18 statement provided the first specific figures publicly released about the attempted theft and the county’s recovery efforts.
In an earlier statement, the school division said it acted immediately after discovering the incident. Local law enforcement was contacted, and federal authorities were notified. The division also began working with the financial institutions involved to stop the transfers and recover the money.
Buchanan County Public Schools retained outside legal counsel experienced in cybersecurity incidents and hired cybersecurity experts to assist with the investigation and response. The U.S. Army Corps of Engineers, involved in the new high school project, was also notified.
The FBI continues to investigate the attempted fraud with assistance from Buchanan County and school division representatives.
Officials have not publicly explained how the payment was redirected or where the remaining $546,020 went, citing the active investigation.
Misdirected payment schemes typically involve criminals sending fraudulent payment instructions or accessing legitimate communications and changing banking information. Large construction projects can become attractive targets because they involve payments worth millions of dollars.
Although more than half a million dollars remains unrecovered, the county’s response prevented the loss of most of the targeted payment.
The incident did not stop work on Southern Gap High School or delay the new school’s opening.
