INITIAL REPORT OF A CYBER-SECURITY CRIME IMPACTING THE COUNTY OF DE WITT

During a closed session of the De Witt County Commissioners Court, commissioners were briefed about an investigation into a cyber-security crime involving the banking information of an  approved vendor and its financial impact on the county. Although information is still being  gathered by local law enforcement authorities and banking officials, some details can be provided. 

On June 14, a county employee responded to an email from an approved vendor seeking  to change its bank account information. The change would affect the electronic payment of future  invoices approved by commissioner’s court. On June 27, the commissioner’s court approved invoices submitted by the approved vendor. An electronic payment was made to the vendor’s bank  account on or about the same day using the new bank account information. 

On July 5, the county auditor became aware that the electronic payment was made to an  unverified bank account of the approved vendor and that the payment was at risk of being diverted.  When questioned, the approved vendor confirmed it had not received any recent payments.  

An investigation into a cyber-security crime was immediately initiated. A branch of Bank  of America confirmed that the account to which the funds were diverted had been opened by a  Nigerian citizen; had received several automatic clearinghouse deposits on the same day; and all  funds received were subsequently wire-transferred to institutions outside of the United States. 

DeWitt County officials continue to work with law enforcement, the First National Bank  of Shiner, and Bank of America in order to recover funds and minimize losses.

County officials believe this was an isolated incident. No other immediate risks are known.  Cyber-security measures have been stepped-up as a result. 

Local governments are at increased risks of attack from cyber criminals. In order to  minimize these risks and mitigate damage, the Texas Legislature mandates that local government  personnel complete cyber-security awareness training on an annual basis. 

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