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$1.4M stolen from CHET school savings account
From: Destry Winant <destry () riskbasedsecurity com>
Date: Wed, 27 Jun 2018 21:58:40 -0500
https://www.dariennewsonline.com/news/article/Darien-woman-part-of-larger-CHET-breach-13031096.php A Fairfield resident lost $82,000 from their state college savings account. A Darien woman saw $50,000 siphoned from her Connecticut Higher Education Trust Direct account. They are part of a larger $1.4 million breach of the state program announced Wednesday by state Treasurer Denise L. Nappier after an inquiry from Hearst Connecticut Media. Nappier said Wednesday the state Treasury has been advised by the CHET Direct program manager, TIAA-CREF Tuition Financing Inc., of $1.4 million worth of unauthorized withdrawals. Of the 44 unauthorized withdrawals, $442,540 was recovered or stopped. CHET Advisor accounts managed by The Hartford, a financial services company, were not affected by the breach. “This is the first time that we are aware of fraudulent account activity in CHET’s 20-plus-year history,” Nappier said, “I am deeply concerned that these criminal activities have impacted CHET account holders.” The money was withdrawn after unauthorized individuals gained online access to the CHET accounts, according to the release from Nappier’s office. David Barrett, executive assistant for communications for Nappier’s office, said they were notified of the breach in June by TFI, when the firm discovered the widespread withdrawals. In addition to the investigation being conducted by the Cybersecurity Unit of the State Police, local departments and the FBI, Barrett said TFI is conducting an internal investigation. “We have asked TFI to supply us with the management report when that investigation is complete,” Barrett said. Any account holder who was affected by the breach will have their CHET accounts fully restored by TFI, and TFI will also provide two years of identity fraud protection services, identity restoration services and $1 million in identity theft insurance coverage. Barrett said it is too early to say whether the state will take any action against TFI because of the security breach. The investigation into the breach, which happened between last October and June of this year, is under investigation by federal, state and local law enforcement agencies. Two of the account holders were notified of the breach in March and April, and the rest in June when the larger breach was discovered, and were advised to contact their local police department. Fairfield Lt. Michael Gagner said his department has received three reports since June 12. In addition to the $82,000 loss, residents reported $25,000 and $26,000 taken from their accounts. There are more than 150,000 CHET accounts, and a list has not been released by TFI or the state on what accounts were breached. “Until it happens to you, it’s hard to capture how unsettling it is when personal accounts have been compromised,” Nappier said. “I’ve been there. Every owner of the more than 150,000 CHET accounts can and should expect our vigilance and best efforts to ensure that their funds and information are protected.” _______________________________________________ BreachExchange mailing list sponsored by Risk Based Security BreachExchange () lists riskbasedsecurity com If you wish to Edit your membership or Unsubscribe you can do so at the following link: https://lists.riskbasedsecurity.com/listinfo/breachexchange
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- $1.4M stolen from CHET school savings account Destry Winant (Jun 28)