In a significant development within cybersecurity and fiscal accountability, the Philadelphia School District has grappled with the fallout of a cyber fraud scheme. City Controller Christy Brady has referred the case, involving nearly $700,000, to the Pennsylvania Office of Attorney General for further examination, as reported by the City Controller's Office.
The scheme involved a series of unauthorized Automated Clearing House (ACH) transactions, in which payments to vendors for school district services were misdirected to accounts held by malevolent actors. The City Controller's office revealed details of these transactions, which occurred in at least four separate instances last year. In one case alone, over $560,000 intended for flood damage repair work was stolen.
Councilmember Isaiah Thomas, the Committee on Education Chairman, emphasized the necessity for transparency in handling public funds, especially regarding educational environments. "We want to ensure taxpayer dollars are dedicated to meeting educational needs and enriching students’ experiences," Thomas expressed, underscoring the significance of the public's understanding of how their money is managed, per the City Controller's Office.
Although the specific details of the investigation are within the purview of the Attorney General's office now, the City Controller's Office has made it clear that they are ready to offer all necessary resources and support during the investigation. The letter to the PA Attorney General detailing the incidents and initial findings by the Controller's Office is available for public view as a downloadable PDF on their website.
