JONESBORO, Ark. (KAIT) – The Nettleton School District lost $204,890 after paying nearly $2 million to a fraudulent checking account, according to the school district’s audit.
The Arkansas Legislative Audit reported the district experienced a “cybersecurity incident” in 2025, during which it made four payments totaling $1,987,310 after receiving an email scam.
Before March 18, 2025, the district received emails requesting changes to bank account information for two vendors, but did not verify the authenticity of the requests, according to the audit.
The vendor, whose email had been compromised, requested the payments from the district on behalf of itself and a contractor.
Between March 18 and April 4, 2025, the district made four payments to the fraudulent checking account totaling $1,987,310.
On April 8, 2025, the district discovered the error after the bank notified the district that…
This involves defrauding the state or using government systems to steal from individuals.
- Tax Identity Theft: A criminal uses your ID and income details to file a tax return in your name and claim a refund before you do.
- Grant/Benefit Fraud: Falsely claiming unemployment, disability, or social grants that the perpetrator is not entitled to.