BUTTE — On Friday, Butte School District released a statement saying they were a victim of a social engineering attack.
The district received an email appearing to come from a contractor they were using for construction on East Middle School.
The email was made by a cyber thief, posing as a contractor, asking the district to pay the construction contractor’s invoice by direct deposit and the district complied. The cyber thief used detailed information obtained from an unknown source.
When the district learned about the theft, they immediately contacted the FBI and Homeland Security which are investigating and seeking to recover the stolen money.
The district also involved a third-party forensic investigator to review the district’s network.
Following a full review of the district’s accounts, the accounts were not subject to unauthorized access.
A pressing problem for the district was that the actual contractor, Langlas and Associates, Inc., did not get paid. However, the district and Langlas agreed upon a payment modification plan.
The district and Langlas were able to avoid costly litigation and pay the subcontractors and vendors by entering into a settlement agreement.
The funds used for the payment come from the interest payments received from metals mine funds, insurance proceeds, and the district’s legal allocation. The payment will have no impact on the general fund or taxes.
This investigation is ongoing and we will provide updates if we receive more information.
