cleveland.com reported:
West Geauga Local Schools is providing additional details to families after a state audit found the district lost $41,500 in a payment redirect scam in 2024.
According to the district, it received an email in October 2024 that appeared to be from the owner of one of its vendors, requesting updated Automated Clearing House (ACH) banking information for direct electronic payments.
The email included the vendor’s name, logo and an invoice, but the sender’s address had been subtly altered by adding an extra letter to the domain name. After the district received updated banking forms bearing what appeared to be the owner’s signature, it changed the payment information. Two subsequent ACH payments were then sent to fraudulent accounts.
The state audit, released Tuesday and covering the fiscal year from July 1, 2024, through June 30, 2025, issued a $5,000 finding for recovery against Pavlat and the district’s accounts-payable specialist to cover the deductible, as required under state law.
According to the district, it received an email in October 2024 that appeared to be from the owner of one of its vendors, requesting updated Automated Clearing House (ACH) banking information for direct electronic payments.
The email included the vendor’s name, logo and an invoice, but the sender’s address had been subtly altered by adding an extra letter to the domain name. After the district received updated banking forms bearing what appeared to be the owner’s signature, it changed the payment information. Two subsequent ACH payments were then sent to fraudulent accounts.
The state audit, released Tuesday and covering the fiscal year from July 1, 2024, through June 30, 2025, issued a $5,000 finding for recovery against Pavlat and the district’s accounts-payable specialist to cover the deductible, as required under state law.
Find the original article here.
Takeaway: Confirm with the vendor before making a remittance change that it is valid and after the payment is made to confirm they received the payment. Fined two employees to cover the deductible.
Enroll in Training Sessions: Last Thursday of Every Month is Training on Frauds and New Scam Alerts and How to Combat
Takeaway: Confirm with the vendor before making a remittance change that it is valid and after the payment is made to confirm they received the payment. Fined two employees to cover the deductible.
Enroll in Training Sessions: Last Thursday of Every Month is Training on Frauds and New Scam Alerts and How to Combat