How can this happen?!

Discussion in 'Teacher Time Out' started by futuremathsprof, Jan 11, 2020.

  1. futuremathsprof

    futuremathsprof Phenom

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    This really made me mad. School districts are strapped for funding already and these scam artists stole $2.3 million from this school district!

    Aren’t there safeguards in place usually that protect a district against this kind of thing...?

    Public schoolteachers and admin, especially, please chime in. Private teachers and admin are welcome, too, of course!

    https://www.yahoo.com/gma/phishing-...-2-3m-fbi-195800767--abc-news-topstories.html
     
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  3. sevenplus

    sevenplus Connoisseur

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    Perhaps they were impersonating a legitimate vendor that the district had a contract with? There aren't really enough details to figure out what happened but they must have scammed someone in the district purchasing office. Yikes!
     
  4. vickilyn

    vickilyn Multitudinous

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    There should be safeguards in place, but any chain is only as strong as its weakest link, One person who didn't document that all account numbers matched every single time that money was deposited - that's all it takes for this to happen.
     
  5. Ima Teacher

    Ima Teacher Maven

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  6. futuremathsprof

    futuremathsprof Phenom

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    Is it possible for the district to recover the funds? This kind of loss could dramatically affect staffing and multiple programs...
     
  7. futuremathsprof

    futuremathsprof Phenom

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  8. futuremathsprof

    futuremathsprof Phenom

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    Doesn’t a superintendent usually have to sign off a charge of this magnitude?
     
  9. vickilyn

    vickilyn Multitudinous

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    Cyber crimes, I believe, may sometimes recover the funds, but most of the time the money doesn't even stay in the US, which gives a bleaker out look.
     
  10. sevenplus

    sevenplus Connoisseur

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    I don't know but my district's budget is 928.3 million per year.
     
  11. Ima Teacher

    Ima Teacher Maven

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    Wow . . . our district budget is around $24,000,000.
     
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  12. futuremathsprof

    futuremathsprof Phenom

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    I know, right?! The budget of my private school is ~$20-$30 million, per year, on average.
     
  13. futuremathsprof

    futuremathsprof Phenom

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    Holy moly! That’s almost a billion dollars a year, roughly. Wow!
     
  14. sevenplus

    sevenplus Connoisseur

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    We have more than 100 schools.
     
  15. vickilyn

    vickilyn Multitudinous

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    My son is in northern VA, and I'm betting their budget is closer to that of sevenplus than any of us, but I bet there are a lot of mega districts that fall into that range. I'm thinking in NYC, Chicago, and many of the California districts in the large cities. They're just the ones that popped into my head right away, but maybe others - Atlanta, Dallas, WDC, maybe Minneapolis and Detroit?
     
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  16. sevenplus

    sevenplus Connoisseur

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    Right. I'm in the largest district in my state. A little under 4,000 teachers, I think (3800?), and a little over 50,000 students.
     
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  17. a2z

    a2z Maven

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    From the linked article,
    "they didn’t recognize the fact that the bank account information had been changed"

    It seems to me that their computer system was updated to change to re-route money. It isn't the day where you went and got the check book to pay the vendor or write a deposit slip so that the money will be directed to the proper account. If someone is able to change bank account information electronically either in your system or somewhere along the electronic chain, it can take a while to detect the error because people don't tend to check on a daily basis that every transaction goes where it is supposed to go.
     
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  18. futuremathsprof

    futuremathsprof Phenom

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    I see. What rotten luck. I hope the criminals are found and charged or the money is recovered at the very least.
     
  19. vickilyn

    vickilyn Multitudinous

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    I hope the same, but I'm betting the money is out of the country - for same reason, those scamming things often tend to be.
     

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